Forum Archive Index - February 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

 

Attn.:  Peter Maiden,

 

Thanks for letting me know! I want to say that:

 

1. LAC could have raised a lot more if they wanted to. No need to calculate P/E(ev); one day you may see a lot of debt, the next day it has disappeared! 

 

Bankers are hammering on their doors trying to lend them money at an AAA rating. They won't get a look in!

 

2. ENE got another 20 cents as part of a book build; LAC wants a minimum price of $ 11.80.

 

3. I had predicted  in my post of Nov. 27, that LAC could raise cash by placement.

To partake in the 1:8 issue at $ 10, the option holder will have  to convert to shares first by paying $8.75. Some holders may not convert at the current $4.40 option price.

 

4. I had hoped that LAC would have raised the lot by placement. They may have thought that, because of the short time since the last issue, it would be wise to give shareholders a turn!

 

5. The option holder has not been advantaged to any extent in percentage terms as the 1 : 8 is a very limited issue and @ $10, still requires some cash!

 

I don't think that the option price should fall further; I expect hardening prices at some stage!.

 

6. It is quite possible that LAC may already have something "lined up". If so, then some astute timing should support prices. They can make deals before obtaining this money!

 

7. After the placement and cash issue, there will be ( quote ):   

160 mill. LAC;   27.2 mill. LACPA;   13.6 mill. LACO and some employees' options: not many for a reasonable large company!

 

8. Readers can surmise that apart from some further possible port works acquisitions, LAC will be interested in more logistics eg. railways and transport.

 

As opportunities arise they will be keen to furher make "seamless" transport- from sender to port- possible.

Toll holdings, a major transport company will be a competitor at some stage.

 

9. Summarizing, I feel that in LACO's case, expansion is the way to go: see my post of Nov.24.

Even if they miss out on some tenders or offers, there are plenty of opportunities left:

They operate in every major port and service Tasmania as well. Their subsidiaries are - as yet unlisted - quite large companies which grow whenever there is another acquisition!    

 

Gerry