As I mentioned previously, asset allocation is a key investment decision. FCL may hold good future prospects (I don't know) however I can say for certain that it has been a dog for years -v- XAO.
FACT 1 In June 01, the ratio of FCL/XAO*1,000 = 0.77 FACT 2 In March 09, this ratio was 0.071 FACT 3 FCL underperformed XAO by 91% over nearly 8 years FACT 4 Over this time, the ROE was always <15% & often <10%
By now FCL must be near friendless in the market after 8 years of under performance. Every dog has it's day, but until the management of FCL can consistently get ROE up to an acceptable investment grade level, it will flounder despite having an NTA of 68 cents.
Problem is that there are too many companies on the ASX with this troubled profile. I haven't yet seen your reasons why FCL is superior to the many others.
The argument about FCL -v- FCLPA is fatuous. Buyers of FCLPA are near guaranteed a known investment outcome to suit their medium term investment needs (mine is superannuation - i.e. security & income).
IMO, this investment process is an easier task that bottom fishing failed companies like FCL and its too numerous peers. FCL may be a great business however it has been a poor investment, and will remain as such until there are objective reasons to change this view.
I hope this helps explain why FCL -v- FCLPA is irrelevant.
Good Luck
FCL Price at posting:
41.5¢ Sentiment: LT Buy Disclosure: Held
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