Forum Archive Index - November 1999

["Brent Wheeler" <brentw@bwcl.co.nz>]

Two points:
*    Survival for the Trust seems likely to dominate their behaviour.
Further, there are few effective sanctions to a survival strategy, even when
price is at issue.   Is this in the interests of the beneficiaries I ask
myself???

*    For TransAlta there are probably benefits in getting rid of
untidyness - but at what cost?  I imagine they have a wider game plan which
is served by "clean" holdings in their interests.

Verdict?  I would incline to the private sector player who is at least
accountable via share price/takeover threat etc..rather than than the less
accountable Trust entity.  If one was too concerned a possible way out is to
buy some TransAlta stock - a sort of "be part of the team not one of the
crowd" strategy.  An alternative would be to become a beneficiary of the
Trust and play up, eg, demand to see the independent valuation.

I suppose the final alternative is to say "this is just the energy sector
shake out in N.Z, I'd rather invest elsewhere while they get their gig
together".  Unsatisfactory but possibly prudent.

Dr Brent Wheeler
Director
Brent Wheeler & Co. Limited
AUCKLAND


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