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Speaker 2: A good old share price every CEO's dread when somebody
Speaker 2: asks them, it's fair to say that it had a
Speaker 2: bit of a beating when you did release your consolidated earnings.
Speaker 2: I think it was down nearly six percent on the day.
Speaker 2: I think it's recovered somewhat since. If we do look
Speaker 2: at that, though, the shareholder return is minus two point
Speaker 2: six percent, I think is what I saw. I think
Speaker 2: it was in the annual report that.
Speaker 3: Was the twelve months to thirty or March.
Speaker 2: Yeah, Now that does seem to be a discount, and
Speaker 2: you do talk about this in their new report. Between
Speaker 2: the share price and the asset values. What can be
Speaker 2: done about that.
Speaker 3: Discount?
Speaker 4: And there is an interesting topic. I'd talk to at
Speaker 4: least a third of people I'd talk to, So there's
Speaker 4: no discount. It's always rome, which there's some truth to
Speaker 4: that rome. And there's definitely a difference between the value
Speaker 4: for one share today versus a majority or the whole
Speaker 4: business in five years time.
Speaker 3: Really the listed price is the price.
Speaker 4: Today for any given volume of shares, right, So it's
Speaker 4: not really the long term value of the assets, and
Speaker 4: it's the difference between that long term value and the
Speaker 4: current value that.
Speaker 3: People talk about the discount.
Speaker 4: For us, it's really a signal for us to think about,
Speaker 4: is there something about our business that's not understood well
Speaker 4: and should we therefore be issuing some communications or bringing
Speaker 4: people into cur assets so that we can take that
Speaker 4: stuff off the table and over. I think the start
Speaker 4: of this year there was a lot of worries about
Speaker 4: AI and deep seeking implications for CDC, which we thought
Speaker 4: was what was going on with a number of share
Speaker 4: prices in our sector at the time, and so through
Speaker 4: April we had a number of we hare to site
Speaker 4: visit to our big development of Melbourne for CDC and
Speaker 4: a few other communications with the team to try and
Speaker 4: make sure people understood how CITYC was placed.
Speaker 3: And actually that's you saw.
Speaker 4: Actually I think the market react quite nicely did that
Speaker 4: and the sharp post kind of move up. So really
Speaker 4: it is for us it's where we should focus our communications.
Speaker 4: Intention is where we first go to. Obviously, every day,
Speaker 4: like any normal human, you re examine every decision you
Speaker 4: made the day before, so you do a bit of
Speaker 4: that as well, but mostly it's for communications.
Speaker 2: Say the well, CDC, it is now forty percent of
Speaker 2: the portfolio. Is it a concentration risk?
Speaker 4: It is a big part of the portfolio. We've had
Speaker 4: assets that have been a bigger proportion in the past.
Speaker 4: So TrustPower is over fifty percent for a lot of
Speaker 4: the early history of fort till I would say it's
Speaker 4: about as big as you'd want it to be. If
Speaker 4: you stood back over a long term period of time
Speaker 4: we talked about the results.
Speaker 3: We try and manage the stuff.
Speaker 4: Over the medium term rather than really reacting really quickly
Speaker 4: to these things. And what we do see is other
Speaker 4: opportunities within the business growing, having the potential to grow
Speaker 4: quite quickly I think over the next two or three years,
Speaker 4: which should balance CDC's weight in the portfolio, if you like.
Speaker 4: But if I stand back, you know, having a big
Speaker 4: proportion of your portfolio and literally the most exciting investment
Speaker 4: sector in the world at the moment.
Speaker 3: Is actually a pretty good place to be.
Speaker 4: And you know, you just have to ask yourself is
Speaker 4: there going to be more or less AI tomorrow? And
Speaker 4: you kind of know the answer, right and so I
Speaker 4: think being right there in a business which, as I
Speaker 4: said before, is incredibly well placed to just pick up
Speaker 4: these contracts as and when they come, I'd still do
Speaker 4: it every day of the week.
Speaker 2: But I is volatile and risky and rapidly changing, as
Speaker 2: you know, So there are surely there are risks there,
Speaker 2: but it's what you're prepared to trade off.
Speaker 4: Yeah, I think the risk is more timing, and even
Speaker 4: then the risk is not very high, and that we
Speaker 4: know where capacity is at with our clients. We know
Speaker 4: that demand is growing incredibly strongly. Therefore there will be contracts,
Speaker 4: and so really the question for us is we're doing
Speaker 4: my weather contracts today, end of the year, early next year. No,
Speaker 4: if you put that in a thirty year valuation model,
Speaker 4: that moves the valuation literally not at all. So as
Speaker 4: long as you fundamentally believe AI is going to be
Speaker 4: a thing and that CDC will pick up more than
Speaker 4: its fair share, then we're on an incredibly great spot.
Speaker 3: You know, I would be patient personally,