Vrumm I dont think any broker comments are ever worth looking...

Vrumm I dont think any broker comments are ever worth looking at!
I agree that patience will be rewarded here as the run off of mortgage book will get to the stage around this time next year when shares are worth around $1.15-$1.20 NTA each that the company will have to sell off remaining asset base as it will become too small to generate a reasonable profit. Probably around $3m mortgage book to sell to one of the big four banks at par.

Ideally it would be great if the board announced at AGM on Nov 11 with certainty that cash will be distributed to shareholders as a dvidend on the wind up of the company, however they most likely wanting to keep their options open if an investment opportunity does present itself.

The Kinghorn family and the CEO have a large stake in this company and a lot of skin in the game, therefore that provides me with confidence that they will be wise with the retained profits.

It a lot of respects this is a boring stock and a boring business, but in the current global environment with a lot of uncertainty boring is good as far as I am concerned. An 80% gain over the next twelve months looks pretty attractive to me and am happy to wait knowing that each day the cash pile builds. Aus unemployment announcement today at 5.1% reduces the liklihood of bad debt risk as well as property prices holding firm in Australia. The fact that funding is being rolled over and reducing all the time is eliminating the second risk of reduced profits in the 10/11 year. I expect about a $45-$47m profit this year provided funding continues to roll over (most rolls over by end of December 2010).

The remaining risk therefore is the use of the funds between now and September 2011. Until the board give any certainty on the direction of how funds will be used I do not see much short term movement in the share price, therefore patience is the key.