I found the Chairman and CEO statements extremely encouraging and it certainly provides some good confirmation bias for me. ))) I am a strong believer that this is a great investment.
Some key takeaways
1. The board is recognising that they need to do a much better job of explaining the financials and outlook. For sure they do. To date it has been abysmal, appeared mysteriously convoluted and opaque and must have scared many investors away.
2. 15% of EPV is still a solid metric and rule of thumb.
3. February 22 when interim results are announced they will provide simplified metrics for understanding the 'earnings power' and therein I believe a better means to assess the financial outlook.
4. No need for a cap raise.
5. The Chairman in his second paragraph "I would particularly like to focus on the Company’s significant potential cash generation as the very considerable book of legal assets we have built is harvested." That says it all.
Buffett had once commented that the reason people don't follow his easy way of making money is that people don't want to get rich slowly.
This is one such stock to get rich slowly.
OBL Price at posting:
$3.28 Sentiment: Buy Disclosure: Held
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