I must have lose all perspective on this then. Because I bought a few more today at 40.5c.
It is misleading to look at this one and think it's on a PE of 20+ - and wonder why you would invest.
As the company preso's continually point out, APN have NTA of 33.5cents per share (including $65M of co-investments and $27M of cash, and the Nowra Masters). So to value the remainer of the business at ~7 cents per share (as the market is today) is very light on.
Look at any of the multiples paid for FUM - (e.g. Centuria for the 360 Capital Office and Industrial Portfoilo), and consider what the management rights for Industria or the AREIT might be worth.... with their combined revenue of ~$12M per annum. I estimate something like $70M - $100M is more on the money (24 - 32cents per share).
Anyway - I'm very long on this one - and may have lost any sense of a balanced view.
APD Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
