overvalued, page-25

StrongaDonga,

I've followed your posts regarding HFA with enthusiasm and you've been spot on the mark at lot of the time IMO.

There is one part where you are losing me mate.

You say HFA is not going to perform in a strong market/recovering economy. Seems you go from bull to bear on this one.

I did a quick check of the HFA chart from the commsec site, HFA over the last 2 years.

Now when the markets were in full swing and economy was going strong HFA was priced between $2.80 in Oct 07 and approx $1.40 in June 08 just before things started going pear shaped.

So from my interpretation and basic understanding (being a noob) when market sentiment was poor in June 08 and HFA still had the debt it has now, its SP was approx $1.40.

Now nothing has changed with HFA's debt (yes its got an extension) and sentiment is returning to the market.

Now why would the SP stop now? I would expect it to slowly make its way to at least pre-GFC levels given its profit/same debt position etc?

Please correct me if I am way off, but I just do not see how this stock can fail in a rising market.

VLV