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
LLP Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
