It is very hard to have a definite fair value at present in my view because of the massive NPAT leverage to increasing FUMA. As per the FY13 report, a 10% increase in FUMA will increase NPAT by approx $1.56m. Compare that with FY13 NPAT of $3.3m.
For as long as the overall market is in GFC recovery phase FUMA should rise and FPS's NPAT is highly leveraged to this.
FPS remains one of my largest holdings and has been since 95c.
FPS Price at posting:
$1.57 Sentiment: None Disclosure: Held
