LLP 0.00% 34.5¢ lloyds bank plc

Whichever way you dice and slice it, the SP of LLP keeps heading...

  1. 4,349 Posts.
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    Whichever way you dice and slice it, the SP of LLP keeps heading south.

    It's times like this that one has to go back to basics:

    Is this a good business?

    Answer: It's not a "stand-out" business...at best it is a borderline "solid" business, but it is in a solid, growing industry.

    Can the business perform and make a profit?

    Answer: Yes...probably not as much as it should given the assets it is employing. It has a substantial cornerstone investor and its LVR ratios are okay. I don't see any problem with the interest rate covenant breach as this will be adjusted.

    Why did you buy and over what period?

    My Answer: I bought because I wanted VALUE and am a 3 year investor.

    So, I'm somewhat comforted by this observation by Warren Buffett:

    "The business performance creates the value - the price creates the opportunity and know this with absolute certainty: Share Prices and their Value can vary highly"

    Perhaps thsi is one of those times where the SP is way out of line with Value.

    So I just topped up with another 100k
 
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Currently unlisted public company.

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