a new floor, page-7

I'd guess that until recently, the fall in SP has related to the Cap Raising, then just as things were likely to bottom out just below the raising price (as is generally seen), dividend payments were suspended. This is another SP killer .. no doubt plenty of people are bailing out on that news.

Its a shame ... retaining a decent dividend would have provided rock-solid support for the SP, with many people chasing yield on their bank interest rates falling just now.

My view on FKP is that the future is bright, based on reasonable ongoing profits guaranteed through the retirement business, plus amazing NTA valuation, even after the write-downs.

The risk is that the SP falls to a level where some sort of take-over occurs (or is engineered after the break-up), and a scrip/share deal is done, where we FKP holders are given shares in predator(s) on a share-price basis, and not on an NTA-per-share value basis.

But I don't believe the major stock-holders would risk such a deal ... too difficult for Mulpha and Stockland to split the company and both pull such a deal at the same time. And too illegal. (lol).

I'm not putting a stop-loss on this one ... I bought at a good valuation, and I'll hold for the long-term.

But I've sized my position so that I won't go broke if I lose the lot .... just in case. The chart does look a little scary. (prob best time to buy ;)