FKP 0.98% $2.03 fkp property group

help please! how to read report correctly?, page-6

  1. 897 Posts.
    Stocks,
    as far as analysts expectations-
    as of end July this is how analysts were rating FKP-

    1 Buy
    1 Hold
    2 Sell

    I'd suggest they will all jump on the wagon soon enough as the price keeps moving up. They always do and usually after the horse has bolted

    The best indicators for you are to realise what would the company be worth if it was broken up and sold?
    - NTA $1.22, so, somewhere above $1.00 should be achievable.

    The fear of FKP going broke or breaching covenants because of debt and gearing has now been eliminated so there won't be any fire sale of their assets! So then, what would certain segments of the business that may be attractive to others be worth?
    - More than their NTA.

    Because other large companies value a stake in FKP, the market will probably value it accordingly and at some point, FKP will be very close to that NTA figure or slightly over. If other companies make it public knowledge that they are very interested in buying more, then ofcourse- good times will roll!

    Now factor in that NTA are low too, because not only was there a massive issue of shares, but all their assets were subtantially written down in value as the property market declined. And maybe, overly so.
    The next 2-5 years "should" see all these values reversing and be re-valued upwards and hence that NTA figure will start rising and so will the shareprice.

    If you are a trader, then that's bad news, because it means you might have to wait longer than you would like for all that to happen.
    But in my opinion, ST gains are still available in FKP.


 
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