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A good old share price every CEO's dread when somebody asks them, it's fair to say that it had a bit of a beating when you did release your consolidated earnings. I think it was down nearly six percent on the day. I think it's recovered somewhat since. If we do look at that, though, the shareholder return is minus two point six percent, I think is what I saw. I think it was in the annual report that.
Was the twelve months to thirty or March.
Yeah, Now that does seem to be a discount, and you do talk about this in their new report. Between the share price and the asset values. What can be done about that.
Discount?
And there is an interesting topic. I'd talk to at least a third of people I'd talk to, So there's no discount. It's always rome, which there's some truth to that rome. And there's definitely a difference between the value for one share today versus a majority or the whole business in five years time.
Really the listed price is the price.
Today for any given volume of shares, right, So it's not really the long term value of the assets, and it's the difference between that long term value and the current value that.
People talk about the discount.
For us, it's really a signal for us to think about, is there something about our business that's not understood well and should we therefore be issuing some communications or bringing people into cur assets so that we can take that
stuff off the table and over. I think the start of this year there was a lot of worries about AI and deep seeking implications for CDC, which we thought was what was going on with a number of share prices in our sector at the time, and so through April we had a number of we hare to site visit to our big development of Melbourne for CDC and a few other communications with the team to try and make sure people understood how CITYC was placed.
And actually that's you saw.
Actually I think the market react quite nicely did that and the sharp post kind of move up. So really it is for us it's where we should focus our communications. Intention is where we first go to. Obviously, every day, like any normal human, you re examine every decision you made the day before, so you do a bit of that as well, but mostly it's for communications.
Say the well, CDC, it is now forty percent of the portfolio. Is it a concentration risk?
It is a big part of the portfolio. We've had assets that have been a bigger proportion in the past. So TrustPower is over fifty percent for a lot of the early history of fort till I would say it's about as big as you'd want it to be. If you stood back over a long term period of time we talked about the results.
We try and manage the stuff.
Over the medium term rather than really reacting really quickly to these things. And what we do see is other opportunities within the business growing, having the potential to grow quite quickly I think over the next two or three years, which should balance CDC's weight in the portfolio, if you like. But if I stand back, you know, having a big proportion of your portfolio and literally the most exciting investment sector in the world at the moment.
Is actually a pretty good place to be.
And you know, you just have to ask yourself is there going to be more or less AI tomorrow? And you kind of know the answer, right and so I think being right there in a business which, as I said before, is incredibly well placed to just pick up these contracts as and when they come, I'd still do it every day of the week.
But I is volatile and risky and rapidly changing, as you know, So there are surely there are risks there, but it's what you're prepared to trade off.
Yeah, I think the risk is more timing, and even then the risk is not very high, and that we know where capacity is at with our clients. We know that demand is growing incredibly strongly. Therefore there will be contracts, and so really the question for us is we're doing my weather contracts today, end of the year, early next year. No, if you put that in a thirty year valuation model,
that moves the valuation literally not at all. So as long as you fundamentally believe AI is going to be a thing and that CDC will pick up more than its fair share, then we're on an incredibly great spot.
You know, I would be patient personally,