RE: essar24 Jul 2015 11:21
Conc_2
This assumes that cash flow was and is the problem for Essar, if it is then this could go positive. should there be other issues then this will have no affect.
I live and work in Asia, been here 14 years and it is very hard to enforce contracts without losing the deal and then spend so many years in litigation in a bought and paid for justice system that winning for an overseas operator is nigh on impossible, Patrimony rules the roost.
The concern outside of the geo political risk is that it could be that the prospective clients in this part of the world just do bit see the value in LIFABRIC. This will not come as a surprise to me as the price of everything is known and the value is of little to no importance. this is evidenced by use of sub standard materials at high cost that are never maintained and always replaced with the cheapest option.
Perhaps Rg is trying to sell a rolls royce to those who want to pay for a fiat uno. They do not care about how much more advanced RR is they want to get from A - B cheaply and will take two days doing it rather than 1 hour in style and comfort. that way the savings are used on other goodies through the expense account etc.
India and China are notoriously difficult markets to work in, recently the blue chips have bee hit for fines in china, these are ''envy costs''how much easier to do that to GDL and have no rebound etc.
The good news may be that China is rapidly running out of energy resources at home and they will need the gas from CBM. their silly stance in the South China sea is driven by desperation, not by arrogance as some would like us to believe.
If Time is on your side and it could take a long time I think the low and perhaps lower SP will represent good buying prices. As RH has already pointed out this is not about resources or even accessibility to those resources, it is about the politics of business.
DYOR
ATB
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