SP1 0.00% $1.07 southern cross payments ltd

Ann: UST Global Announces USD 2,000,000 Investment in xTV, page-10

  1. 6,615 Posts.
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    Res, i don't see many companies holding stock in other companies. Unless of course they are funds or banks.

    Sure, plenty of organisations own other companies under their umbrella. But its generally the umbrella company that is listed and shareholders benefit through diversification of sectors. REA perfect example.

    I don't know of many ASX listed companies that hold actual stock of other ASX listed companies. This is the model ALA are setting up. It may work, and work well, but the performance of ALA will start to depend on other listed companies and be open to a greater amount of outside risks.

    In fact, you pretty much made my point when you said "but LBY is up 25%" - Having exposure to stocks can be unpredictable. And ALA are positioning themselves (if they keep going down this road) with hope that the share price of listed companies they invest in goes up... And we know the market works both ways.

    Not sure how long you have been a holder for, or your outlook on performance, but at the start of this month ALA was sitting at $0.26. I don't see that as solid gains.

    You also missed my point entirely about the complex nature of ALA. I guarantee If i put you on the spot and asked to you to explain the ALA business model, the advantages of our LBY and IZM deals and current acquisitions and the markets they operate in you couldn't. I couldn't. It's all over the place.

    Can you tell your friends how the company is going to generate real short / medium term revenue? I know Home Open has massive potential but nothing has been released. And all their current acquisitions are a long long way from bringing in money. So far we have secured $115k for the Positiv Flo work.

    I'm not down ramping ALA. These are all questions everyone needs to ask. Notice my sentiment is still 'Buy'. Never fall in love with a stock.
 
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