i didnt like the feeble bounce last week. tipped half at 13.5 when they were losing it again - bought back today at 9.4 but not with a great deal of confidence. its just i am doing very well elsewhere i thought i could have a bit of a gamble.
i guess i thought like hammer 05 in that even if the banks pull them ( i know they refinanced most of their debt but there could be covenants and cross guarantees hidden somewhere - DeLacey is incompetent, i originaally bought because of the two that resigned at start of this crisis ) there should be reasonable asset value there as the properties are obviously good bite sizes.
as upzhao and someone else said funds management wasn't a big revenue earner and i suspect it wasnt priced in by the market to any extent . the greatest loss is of reputation and the funds management side will take a miracle to revive. there will be a lot of one off costs it they do get to the stage of winding it down ( they will at least have to downsize ) yet i feel the asset cover (albeit reduced by the auditors )should easily justify this price; but whether it can cope with a voraciuos administrator or even worse a reciever i dont know.
TCQ Price at posting:
9.5¢ Sentiment: Hold Disclosure: Held
