Hey Spark, I think your opinion is both right and wrong. FUMAA...

Hey Spark, I think your opinion is both right and wrong. FUMAA is not solely comprised of equities, or even equities only in AU. So when the market rises, it is not necessarily moving in lock-step with the market.

If the market ever values FID at 30 times earnings, I would probably be a seller. It never escaped my mind the thought that FID is in a very competitive market. The barrier to entry is low and a lot is hanging on the management, yet the succession is right in sight. I can imagine Mr. Singh prospered with stoic, but will his son do the same while they are already worth many millions? From the books I read, a second generation will generally do well but this is far from a sure thing.

On the other hand, FID will earn around 30-35 cents a share in underlying earnings. I would be worried if it is trading close to 9-10 range but not now when the share is in the 5's.