CLO purchased around 33% of FGE earlier this year for between $1.90 and $2.10 per share. FGE is now trading around $4.65. On my calculations CLO paid a total of around $55 million for FGE. Based on current price that stake is now worth about $119 million. Not bad for an investment made only 6 months ago. Since the initial CLO purchase FGE announced a full year NPAT of $29.95m (up 89% 0n pcp) and today announced forecast based on Sept qtr for first half profit of $25-$27 million. Have recently criticised CLO management for lack of transparency. But FGE pruchase has restored my confidence about overall management capacity. Have bought into CLO today as a cheap way of getting exposure to FGE.
CLO Price at posting:
65.0¢ Sentiment: Hold Disclosure: Held
