This seems cheap - but some negatives to cheer you all up.***...

This seems cheap - but some negatives to cheer you all up.

*** ?S+P rating is BBB on all assets: BBB: An obligor rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.? Might be some more dilution of earnings on the way - an A rating would be nice if debt becomes difficult to raise.

*** Management contract is not included in the balance sheet. Note that when MAP internalised the Macquarie management it was worth a touch over 8.5% of market cap (adjusted for Macquarie?s holding) ? but it was noted that the NPV of management fees was worth well over this price? different agreement and different entities involved of course.

*** "Base Fee = 1% per annum of Net Investment Value.
Net Investment Value is the Market Value of DUET securities plus the amount of any external borrowings and the amount firmly committed to future investments less the amount invested in cash or cash equivalents.
Market Value is the volume weighted average market capitalisation over the last 20 ASX trading days of each quarter." Haven't worked this out - as managment fees are higher than 1% of market cap from what I can see. If debt is in one entity - management get 1% of it as a management fee - and if in another entity - they don't get it. Will there be some further asset shuffling?

I think investors are confused by the distributions (not sure if maintainable, and not so hot after tax is paid) and NTA and book value - which are nonsense in this case. I think this is worth $1.50 absolute tops. Might be wrong . . . we'll find out.