There's rumblings from some gin drinkers back from Kuwait City and Canada (not at the name time) of some M&A activity in the Water/Utilities sector. With a shake up on the way by no later than 2017, its fair to say there's going to be opportunities akin to the Electricity / Gas markets.
One would be wise to follow closely, with some clarity in the debt markets and the water sector having some visibility/resilience, This all comes post the Queens speech (2013) (BBC) and Ofwat determinations (29 August 2014 draft determinations), the time is looking more than ripe. For those needing assistance with sleep I can recommend the Water market governance arrangements – a discussion document and other sources, in conjunction with the Ofwat docs.
Over to LongRiver et al to finally decide what to offer, the final offer last time was 2200, so is one prepared to pay a 15% premium for the company? What say ye, 2285....or perhaps a new target, the Pru might have a spare 300M to throw in the kitty! Ignoring the likely write-downs at Kenmare (KMR). How long can negotiations go on for?
It was a pleasure to note the Aussie contingent had sobered up enough to look in to the Chinese gold sales, but are they gold sales...I'm as confused as you are.
Atb Fraser
FJP thanks for the CNE. managed to recover a load of loss. Silent yet very accurate thank you. Cheers A Lurker
ReplyDeleteFraser- Hi- SVT- yes, they went up to £22 then threw in the towel as the board wouldn't even talk to them- poor diddums... SVT is well over my fair value (£17.70), which have been affected by iffy forward projections re t/over and net profits and at £19.57 now, a 15% premium isn't that attractive to me but as you say LongRiver are free to have another shot now.
ReplyDeleteRe ZOX- another update, another tale of their corrosive process and its effects on the poor old machinery. They do highlight 10/14 as being a month when they may have even broken even-- they could have popped a few bottles of your champs when they worked that one out but then the repairs get mentioned again and an independent consultant has been used. They don't quote him word for word but I bet the words he used included-- "whos great idea was this" "and you have patented it???..." and "you cant polish a turd". And then they point out that they are going to build more of these self corroding plants... any takers... perhaps they could try selling them after having 2 months unaffected production, not just one. Perhaps they would be better off just treating the raw materials by dipping them in blue nun, as this could be a little less corrosive and may yield more zinc... and I wont charge them if they adopt this method either :-))
Cheers. The Leggie
Leggie, indeed re: SVT. For myself I avoid companies that large (save for obvious plays). Arbitrage of the hope of is not for me..
DeleteZincox, PLACING/issue of equity clearly flagged...http://www.investegate.co.uk/zincox-resources-plc--zox-/rns/update/201411110700136538W/ Anyone holding is in denial or perhaps has a nice pair of shorts hedging...Hat Tip Rich R!