Half yearly figures were a classic "mirror trick". By revaluing property they created a profit - and whilst that is allowable by accountiung standards - it disguised a loss on trading of about $6m.

Still they paid a dividend 2.1 cents X 2 and naturally that has to come out of cash reserves. This I don't like.

However the loss on trading for the Dec half might be explained away by the fact that their building program just didn't get properties sold in the Dec half year so they should reflect decent profits in this half. I've done some snooping around their sites (mainly Qld based) and there is genuine interest in their product so that $16m approx of development profit is likely to hold up.

Not sure they will get a revaluation bounce in this half tho.

The real issue however is the level of fees charged by the manager which is a company associated with the main director and shareholder, Bill Lewski.

Plus, there might be some concerns about how solid one of the companies which is managing a portion of the retirement villages is faring.

All in all tho, I have acquired a swag of these - unfortunately started buying around 90 cents which makes it difficult for me to average down to current prices...but with the dividend flow, I just don't get phased by the price. Thi is a solid business with damn little debt and no exposure to the sub-prime mess.

Conclusion: Its a good quality diamond surrounded by a clod of dirt. The market just sees the dirt and hasn't dug deeper enough.