Forum Archive Index - February 2000

["hugh webber" <hugh.webber@clear.net.nz>]

Good spotting Paul, this would seem like more of a Ron Brierley type
investment 
than AQL with a you can't lose either way scenario and a much shorter lead
time.

I came to the conclusion after reading the screeds and screeds of AQL
speculation
(with a you could lose badly as one possible scenario) that what many
Sharechat readers 
are attracted by is the old formula of a little bit of religion, a little
bit of sex and a little bit
of mystery - as in My God, I'm pregnant, who dunnit.

cheers,
Hugh

----------
> From: Paul Frost <frostpt@ihug.co.nz>
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] SEU - Cash Shell
> Date: Thursday, 10 February 2000 20:00
> 
> Former utilities investor South Eastern Utilities, now cashed up, has
assets
> of over $60,000,000.
> This represents an asset backing per share of over $1.05 (predominately
> cash).
> When compared to their current market price of .91c, one could come to
the
> conclusion that they are under-valued.
> 
> Obviously, what is important is what the directors plan to do with the
cash.
> SEU's last announcement tells the story better than I can :
> 
> "South Eastern Utilities advised that further to its announcement on
> 06/10/99 it is continuing to explore the most practical manner in which
to
> return the company's equity to its shareholders.  At the same time the
> company has continued to look for acquisitions that are capable of
creating
> substantial shareholder value.      Currently some promising investment
> opportunities that should be capable of meeting the company's investment
> criteria are being investigated.  Whilst these investigations may not
result
> in an investment,good progress is being made.  This together with
findings
> to date regarding the return of equity have led the Board to conclude
that
> it is not in shareholder's best interests to initiate a return of the
> company's equity at the present time.  "One of two things will happen
during
> the coming year.Either we will have entered into an investment or
> investments, which meet the company's investment criteria, and I have to
say
> this has always been ourfirst priority.  Alternatively, investment will
not
> have occurred, and return of equity will follow", said Chairman Norman
> Geary.  As advised to shareholders some months ago the matter of dividend
> payments would be kept under review."
> 
> With over $60,000,000 in liquid assets SEU would have more cash in the
bank
> than AQL,SPE,
> ITC,EPH etc put together.They should be capable of making a substantial
> investment of some significance.
> 
> My understanding is that an update on the companies future will be made
> later this month, when they announce their intrim result.
> 
> Now could be a good time to take positions in this company, with limited
> downside and substantial upside, should a positive announcement be made
> later this month.
> 
> Disclosure : I own SEU shares.
> 
> 
>
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