The good, the bad and the ugly in 2009:
It has been good to be part of a resilient economy with a stable banking system that is open for business; it has been bad that the equity markets were spooked by international investors and have left vendors confused and reluctant to sell; the good news is that from this point on either more ugliness or less should provide unction for the troubled investor.
Changes for 2010:
Corporate Australia has raised fresh equity at deep discounts, profits are uncertain, dividend yield is poor, shareholders angry and Boardrooms stressed. Routine refinancing for some will be complicated while others are guilty of excess cash….this looks like an environment where the right to operate assets will be put to the test and businesses will change hands.
This comment first appeared as part of a larger article in the PEI Asia Annual Review 2009, which was published with the December/January issue.