PP, great post too! No-one knows the exact outcome for the next 12 months but the odds are strongly in favour that it will be a damn sight better than the last 12 months!!!!
I think account should be made for the nature of Instos to be far bigger gamblers than we generally acknowledge. Once they see the writedowns coming to an end, and if the economy is still holding up well, they will be into the undervalued property stocks boots and all and they will definitely overshoot those NTA values by some margin. For example, WDC at these levels will be seen in time to have been a gift from heaven, just as it was around the $9s. FKP ain't no WDC but it is undervalued just the same!
12 months is a long time in the markets and there are still huge funds that are sitting on the sidelines waiting to be employed by the more conservative Instos who are still waiting for this "spike" to reverse.
They will eventually reason with themselves that they have in fact missed the boat and they'd better start employing those funds quicksmart or their own returns will look pretty sick.
True, FKP offers far more capital gain than yield but surely this is a defensive strategy by FKP that should be appreciated rather than punished in these tough times. I think it's acceptable under the circumstances.
Good fortune to all and see you on the other side of 12 months!
FKP Price at posting:
74.0¢ Sentiment: Buy Disclosure: Held
