Originally Posted by
blackcap
Extract from a newsletter I subscribe to.
What total nonsense! It is insulting that these people think shareholders are so stupid! In what School of Economics
does one invest $500 million in cash to “support” a business with a net present value of only $343-373 million? This is “best
industry practice”? Where? In North Korea? Venezuela? Somalia?
Clearly either
(1) the valuation of the port exceeds $500 million (and, as investors, we would estimate a fair valuation around $650-680 million or 635-665 cents per share) or
(2) the boards of LPC and CCHL are mis-allocating capital, investing $500 million of cash to build a business worth only $343-373 million.