dump, page-7

Guys, LLP isn't out of step when compared to its industry peers - PTN, FKP, BEC and AVE.

It's the industry...currently it's unloved after having been flavour of the year some 3 to 5 years ago.

The instos have deserted because they cannot easily work out the business model with DMF fees and ther associated accouting treatment.

Plus, aged care isn't exactly a "river of gold" with the Fed Govt screwing fees and costs wherever they can.

Then there is the issue of the sheer quantum of assets tied up for such a small return and, upon reflection, we have all been seduced into these investments by virtue of the huge SP discounts to the reported NTA.

I know I have been guilty of thinking that I can buy $1 worth of real estate for 50 cents or whatever...but will we ever see these trading at close to their NTA's again...because surely ROI comes into it and I now have my doubts about whether this industry can deliver a commercial ROI.

This industry really is a long term investment very much dependent upon the maturity factor of the villages and the quality of the management.

I would assess the management at BEC, FKP and LLP as good. AVE I don't know enough about to comment. And the management at PTN is apalling to apathetic and should be replaced because they cannot get it firing. I cannot see PTN surviving in its present format and I'd give it a year at the most.

So I'm a Hold on LLP...and very comfortable with my investment in BEC and FKP. PTN I've already sold out and accepted my costly $100k lesson...but can't say I'm happy about it because I think management were (and are) just too slow to react and make appropriate adjustments. They are paid too much, to do too little and then do it too late.