Ann: Appendix 4E and Preliminary Final Report, page-10

Good discussion, everyone. Quickbux has a solid list of strengths and SaberX has an equally good set of concerns.

Ah, what's an investor to do! I'm a lousy predictor of the market's fickleness, so I don't try to sell down when potential downdrafts are rumored. I'm OK selling down a few somewhat predictably bouncy stocks and stocks I think have run far above their value. But for most I just hang on during the gyrations.

Anyway, here are a few thoughts:

1. FRI's ann report last week indicates that between 61% and 96% of FY15 and FY16 projects have already been sold. Concerto, the only FY17 completion project marketed so far, has about 35% sales (80 properties) since marketing began in July.

2. Looks like FY15 sales will be lower than FY14 due to project completion timing. Quickbux noted revenue may exceed FY14 in FY16 and considerably so in FY17 (assuming there will be buyers).

3. FRI's debt necessarily increases to fund more projects than in the past, so its debt-to-equity figures have necessarily risen. Of course, increasing debt also gets firms in trouble if the growth fizzles.

4. Interest rate rises in the US might spook the OZ market. Yet OZ interest rates will likely remain near record lows for almost a year and will eventually rise to a "new normal" of 4% or 4.5% (vs 5-6% in old normal). But RBA or fed gov't might tighten credit if property buyers take on too much debt.

5. ABS reported today that Perth unemployment was 5% in August -- down from 5.2% in July (possibly due to stats anomaly). I somehow thought WA unemployment was much higher. Still, I get a sense that folks in Perth are cautious due to the state's subdued economy (relative to pre-2013). Good news is that the labour participation rate is slowly climbing (nationwide, no info on WA).