careful, page-57

rjhlmw,
Mate, Orbis are an investment manager of other peoples money.
Sure they are probably smart guys. They apply the same Spin as Valad, ie they will talk up their investment objectives and strategies . They will say their investment style is a "fundamental value investor " and they select their investments by applying their value based investment approach etc etc...and no doubt they have been very successfull. Valad do the same, they work hard on the Spin, "First mover advantage" etc etc.
My point about the punt is they wont lose much of the investment. If the price falls they will be out of the stock by the time the loss hits 20%.

Lets be frank, they are investing in Valad for all the same reasons most investors are currenlty showing interest in Valad, hoping it will rally on a McCabe takeover or privatisation bid at 10- 20 cents or greater. They are investing for reasons no different to the reason investors on HC are investing. The price at 4 cents is the reason the stock is attracting this sort of investor. Lets face it , we are not here for the dividends!
This leads me to my other point,the stock is not an investment grade AREIT, like WDC, BWP, GMG or even IIF ( I am struggling here to find a list of ggod AREITs) , so I dont think it will survive in its present form. All of Valads growth and acquisition of assets has been over the last 2-3 years when asset prices were at the peak of the cycle, they have over paid( as did most everyone else over this period)for assets. Even after write downs, if the business is broken up, and the assets offered for sale, there will be so much investment grade real estate for sale around the world over the next 12 - 18 months,(unprecedented volumes) buyers will be spoilt for choice. This is why I am cautious about he NAV comments, sure 4 cents looks cheap, but this doesnt always translate into value!