Obviously management could have done a lot of things better, but it looks to me like FKP is sharply underpriced. It's always hard to work out how much of a SP fall is due to market sentiment, due to actual fall in value/increase in risk, or just due to an inflated value prior to the fall.
That being said, these guys have good strong tangible assets that are going to be in use for a long time unless they find a cure and a reversing agent for aging, have good underlying recurring earnings, and have development experience for both resi and commercial.
I'm not sure why the SP has taken such a hammering, but I'm onboard because of the strong fundamentals. It's the classic case - barring unforseen disastrous circumstances, SP will eventually reflect underlying earnings with a discount factor for risk - and with a strongly asset backed company like this, the discount should probably take these to a P/E of somewhere around 10, not somewhere under 3 as it currently stands.
As for posters lamenting their terrible decision to invest in FKP at much higher SP than current - don't. It's all too easy to judge yourself with hindsight and a known result, but at the time, it still could have been a good decision. Sometimes good decisions give a bad result, and sometimes bad decisions give a good result. If you had a valuation method that you understand and work by that told you to buy at $2 or $3 equivalent, then why not consider topping up now at $1.20?
FKP Price at posting:
$1.06 Sentiment: LT Buy Disclosure: Held
