I'm concerned about your statement about your increasing exposure though. What the hell are doing man, your gut instinct is spot on dude, you should be decreasing not increasing your exposure.
How many examples does the market need (in particular the shareholders) to get the message? You are there to bleed. They will feed you only as much info as they have to.
I could choose a dozen examples but here is 2 doozies.
1. What exactly is the real estate security that the two Amigos put up to secure there outrageous loans? What pile of crap security is it that they would pay well above (but not as high as the sister funds have to pay to borrow from the mother ship) bank rates to borrow from the mother ship?
The chairman told the jounos that its was a timing issue. Yeah, well lets see the debts now refinanced with a bank at much lower rates and save the poor lads a pile of interest. Now that the so called "timing issue has passed" lets help the boys out.
Yes, I thought so, use junk to secure a big loan and see how many banks will lend to you. If they had gone to a bank their max LVR using residential property for this amount of money would probably maxed out at 70%LVR maybe 65%. If the security was commercial, maybe in this crap market it would be say 50% as most banks are not doing NEW commercial loan deals. Now if its moose pasture out in the middle of nowhere like one of their private country coastal development sites then forget it, you will be going nowhere fast with traditional lenders. Pleanty of story yet to be revealed here folks(good luck). make sure you all ask at the AGM about the unexplained security put up.
2. But an even better example of how the incredible blue sky story can be created out of a dog disaster. Assuming they haven't pulled it down from their website, check the last couple of PDS documents issued for the recently since blown up Diversified Fund. One PDS I think was released just before Dec 08 then another amended one shortly thereafter.
Compare that pile of crap and the pile of crap the hire-an-expert-independent-report for would-be investors that was included in the PDS or went as a companion report and that with what a few months later is a total implosion. It would be funny if it had only cost Aspen Group money. Unfortunately it cost many retirees serious money. oes anyone with half a brain, now looking back on those PDS's, believe the crap put in them?
Meanwhile the 2 Amigo's just carry on as usual.
By the way, it must be time for another director incentive share issue (short and long term incentive packages as usual please with loans included dont forget) and some new unlisted options given the old ones are now worthless as well while you mug shareholders are at it.
Maybe the shareholders could top up those outrageous loans up by a few million more $ to help give the lads some extra incentive to stay focused. You know, its not easy living on a $90K basic pay each and holding millions in stock.
But as I have said many times, I am staggered out how shareholders just keep going back for more punishment. I did not take up the 30 cent offer because of the desire to reduce exposure to this greed machine even if the sums on paper suggested taking it up was mathmatically the right thing to do as I was certain the Bozos at Euroz had absolutly no intention of hanging around.
They dumped the stock as I knew they and their insto clients would do and may still have instos in there trying to get out. The idea was to turn a profit not stay in this dog. That would explain why these low life instos gave the green light to the 2 Amigo's loans, they had no intention of sticking around, not their problem and maybe they green lighted to get some old quid pro quo. Got you again shareholders (maybe not the instos this time but I suspect many are still trapped and about to get a haircut over the next 6 months) and we will see you at the next AGM to let you kiss our buts which you do year after year and this is why we keep giving you what we love to give you so much of.
You can now buy the stock cheaper on most days below the 30 cents and as we still have another property devaluation (yes) coming at 31 Dec 09, this company like all other commercial LPT's are going to get another carving in NTA. Office towers have still not bottomed out in terms of valuations.
APZ Price at posting:
25.4¢ Sentiment: Sell Disclosure: Held
(20min delay)