sale of the century, page-5

As a shareholder seeing the share price hammered like that certainly does put doubt in your mind about hidden things you may not know about, but here's what I'm putting it down to.

1. Property Trust sector out of favour due sub-prime.

2. Any stock with high gearing levels out of favour (HLG 68%), see 1.

3. Association with NLG being one of their major tenants. NLG trying to refurb NSW pubs to counter drop in trade due to smoking bans. Banks told them to do a rights issue for funding, set at .13c which has fallen to the underwriters.
NLG have had to downgrade their profit forcast as a result. Currently suspended from trading pending an ann.

4. Company doesn't have any history. Only floated in August.

5. Probably high on hit list for holders with margin loans being subject to margin calls, - flight to safety, see 4. Also, imagine being in from the float at $3.50, the mum and dad sector would have become scared sh*#less and dumped.


The reality is their loan interest rate is hedged and is not due for re-negotiating for 2 more years.

They are beating their prospectus profit forcasts.

They may actually profit from NLG's demise. If that happens.

Their dividend yield at current SP is about 17%. NTA $3.43

If you actually look into the properties they own some of them also have development potential which is the other business Tom Hedley specialises in.

I might be wrong but I can't think of anything that they would need to hide. That may be a simplistic view but in this market there are a lot of share price valuations that don't make sense when looking with a long term outlook.

As for the 'cowboy' thing maybe it's got something to do with NQ, ha ha. I've spoken to them and I didn't percieve any gung ho feeling. They have been expanding the porfolio (see recent announcement) maybe they are supposed to be paralised with fear in the current market.

Anyway I've made my mind up on this stock and I'm discounting a lot of the market noise for now, only time will tell if I've stuffed up or not.