directors buying, page-9

actually, if you do your numbers, I think you will agree that FCLPA will do better than FCL. You see, on the following assumptions:
- Buy FCLPA @ 22.50
- average BBSW to Jun 2012 say 3.5%
- conversion to equity or payout in cash in Jun 2011

To get the equivalent PV of cash flows ($87) for the $22.50 invested, you need a per annum return of 178% PER ANNUM to 30 Jun 2011.

I doubt the equity will perform at this level in the next two years. Why? well, equity will be diluted by placements or spp. This will shore up FCL which will mean FCLPA will head back to full face value and redeem or convert at full face value in June 2011. At the same time, equity will languish.

In addition to my view that FCLPA will actually perform better than FCL, FCLPA ranks ahead of FCL in terms of both dividend payment priority and wind up.