Humm Valuation - What is Sensible, page-115

Correct.

Shorters like Stockshow above have infected our market......they love it......look at what they did to Hum over the last year or two.....smashed it.

One suspects it had a lot to do with JW and the Arab trying to depress to steal the company from retail.

More generally, the obsession with houses has a lot to do with the absence of demand for stocks relative to most other developed/progressing nations.

Australia has a real issue with people investing in houses....its pathetically stupid and extremely unproductive for the nation.

The pref shares should be converted but I believe its not in AA's interest as there are unfavourable equity conversion terms that would dilute him, once again making him vulnerable to a Scheme of Arrangement.

The balance sheet is very very strong on any analysis.....ignore the headline debt figures because they include the warehousing/pre securitisation debt. The only real debt is the circa $60m in pref shares.

The normalised cash profit is reliable. The abnormals in recent years are very much related to their foray into BNPL....which is in the process of closing and they are effectively progressively writing it off and/or showing what stranded costs have been dealt with.

Its good value....not outstanding.....my val is around 65-80 cents cents. Realise thats a big range but 44 cents is good buying.