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@pastorjeremiah These two scenarios are economically equivalent. I agree that the latter is more likely, but it just means sgp is set up for a long period of poor future earnings. SGP has not done this. You can look at the balance sheet, there are no provisions. There is merely a short...

@tdh86 Yeah there are families that own private companies and thousands of hectares of land totalling billions of dollars. Dont show up on any lists.

@pastorjeremiah You keep talking about PE and ROE when the E you are working with is a placeholder number and not final. They will have to restate all revenue after 2015, it is very clear in the documents published by their regulator. 2016 onward is only classified as "interim" revenue subject...

@pastorjeremiah We dont know the ROE because all revenue and earnings after 2015 are going to be adjusted. It will be lower because the allowed revenue formula will go from multiplying asset base by a wacc of 15% to 10.7%. Then for the 5 year period after 2020 wacc will decline again because...

@pastorjeremiah Have you heard about the rate reset process going on with NGCP? ERC sets NGCP annual revenue based on a formula which mostly comes down to expenses plus a return on value of transmission assets equal to wacc as determined by the commission every 5 years. The last time wacc was...

@ruthchirie I like this one but with fairly low confidence. Risks are declining future margins since theyre distributing a non differentiated commodity. Now mostly in relatively undeveloped vismin market they can charge higher markups. Also physical infrastructer heavy so thats going to suck up...