AFR article todayL1 Capital takes aim at Peet Ltd, calls for...

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sloanrunner

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26/02/20

10:38

Post #: 43157175
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Originally posted by nailsnglue: ↑

A quote from the last LSF newsletter below. I get the feeling the LSF team are all systems go with respect to the current market volatility. I think sensible topping up at these levels makes sense given the depressed SP. Yes, there is a market delay with the NTA but nervous investors always sell at the wrong time and there would be plenty of these about atm. If you look back in history, any news is usually already priced into markets. Deaths from Covid-19 are minor compared to annual HIV and Influenza deaths. Studies show that morbidity is highly correlated to being male, infirm and aged 60-69+. Notice that we don't quarantine for other similar diseases such as have HIV and Influenza and the same will happen for Covid-19. By the time they declare a pandemic, the markets would probably rise due to the removal of quarantines. The velocity of money and trade, post this mess, will be substantial as a catch up will be required. Plenty of short opportunities until then and the flipside long opportunities after. Global stimulus will be immense to get the ball rolling again but perhaps not here in Aus. Momentum/growth stocks could be the casualty here as the really have/are trading at a premium.

"We believe the stock opportunities available at the moment are exceptional and that the market’s obsession with concept stocks and
yield stocks is presenting incredible opportunities elsewhere in the market. We (Mark Landau and Rafi Lamm) have been aggressively
adding to our personal investment in the Company over the past 6 months - we have purchased another $25m of LSF shares and are
continuing to buy on market. While we appreciate the short-term volatility caused by the outbreak of the Coronavirus can be unsettling
for our investors, these events have historically had a relatively shortterm impact on share prices and these market distortions typically
present fantastic buying & shorting opportunities."

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AFR article today
L1 Capital takes aim at Peet Ltd, calls for strategic review
"It is understood significant shareholder L1 Capital – which has a 10.4 per cent stake in the company – sent a letter to Peet's board on Monday, recommending it appoints external advisors to conduct a review of the business"

I would send a letter back just saying "Ditto"

LSF Price at posting: $1.35 Sentiment: None Disclosure: Held
4 Upvote

2 Great analysis

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