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20/09/18
11:04
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Originally posted by PortfolioPlus
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Don't know about that NewB...sold out residential and unit sites at a profit...in and around Newstead in Brisbane at a profit!!! Today the stock overhang in that area is causing massive haemmoraging.
Concentrating on the retirement industry? Hmmm, not exciting I'll grant you that...but certainly demographically very, very bullish going forward.
I'll take my cue from a mate - one of the foundation partners in a listed aged care facility. On Monday his book loss was $54m...but his attitude was very serene. "Book profits and losses come and go. This matter will resolve itself in due course." Effectively, nothing to see here.
AOG has been caught up in the maelstrum. I for one am prepared to wait.
Witness the attitude of Los Angeles-based Sarah Ketterer, CEO of Causeway Capital with $60 billion under management as quoted to the AFR...she's in Australia looking to buy companies curently oversold as a consequece of the noise around Royal Commission sufferers.
Value is value and the time to buy is when they are unloved. And yes, poor old AOG appears to have few friends and sits alone to at lunch every day...but the facts are you can buy $3.92 worth of assets for around $2.00!
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Here's a better like-for-like comparison - AOG are better compared to INA and LIC
INA are trading on a FY19 PE of 16 with a 3.6% yield
LIC are at FY19PE of 12 with a yield of 5%
AOG are presently on a FY19 PE of 10 and a yield of 4.4%