Investments Update

Lots of investment news and movements. Some of these are:

  • Aconex Ltd (ASX: ACX) has received a takeover offer. This was at a price 44% greater than recent trades, almost double August Investments’ average entry price and the share price has moved close to the offer price of $7.80. We are ahead.
  • Pacific Energy (ASX: PEA) has disappointed. As recently as September, we expressed enthusiasm for their intention to refocus their remote energy sites by moving away from diesel towards solar and other sustainable sources. This has not happened and they seem to be finding it hard to find new contracts while their largest long term client has announced its intention to move to another provider. It could be that Pacific Energy are reluctant to write down their diesel plant while spending money on new cheaper sustainable generation plant. At the appropriate time we will consider divesting August Investments of this investment, but meanwhile we continue to hold for the 5.8% dividend yield.
  • We have sold a small number of shares in Blackmores Ltd (ASX: BKL) and Australian Ethical Investments (ASX: AEF), both having risen over 100% from our average entry price. While value has declined somewhat with these price rises, we will continue to hold shares in both companies over the long term.
  • New Zealand sustainable energy utility and retailer Meridian Energy (ASX: MEZ) has announced that it has entered into a conditional agreement to purchase GSP Energy Pty Ltd, which operates three Australian hydro power stations, the Hume, Burrinjuck and the Keepit Power Stations (formerly the Green State Power hydro assets). The agreement is subject to Australian Foreign Investment Review Board approval. The purchase will make available a further 92.4 MWs of hydro generation to be distributed to Meridian’s Australian Powershop customers.
  • The value of the August Investments portfolio has fared well in the second half of CY 2017. Details will be posted in January. Meanwhile, a Merry Christmas and Happy New Year to all our investors and their families.