any opinion?, page-8

PViews, HFA is not a REIT that is in breach of its lending covenant.

The banks CANT take the view that all their corporate lenders pay back their debt in true cashflow sweep.....as then the banks would have no business.

This morning, UBS and Bell Potter came out with Buy recommendations on HFA after yesterdays announcement. They have put a price target of 40c on them, stating that the DCF gives a higher valuation, but they did it on an EBIT multiple of FY11E earnings/capital structure.

As a side, interestingly Macquarie announced the purchase after market yesterday of Delaware Investments in the US for US$428m. Delaware generated just US$7.5m NPAT in the last 12 months. HFA for the same period was $31.8m.

My point here, is that MQG knows that all such businesses over the last 12 months have had their earnings smashed.....however they are taking advantage of the discount in such businesses and positioning themselves for a global recovery....We can do the same thing by buying HFA that 18 months ago was $2.50 for 33c.

See this for what it is, an opportunity to make some real wealth.

Kiril.

I hold.