Sudden jump, page-32

I am not thinking they won't be starting to pay a dividend. I assume that the 45c they have in listed investments mostly seem to pay around 5%. So I am expecting them to start a dividend paying process. I am not exp[ecting full yields However the LIC game seems to be driven by paying dividends. So I am seeing that they will get in franking credits and dividends around 2.2% and as such that should allow them to pay around 1.5c plus franking which may not be 100% but could be around 80%.

I think not paying a dividend will keep the discount to tangible assets and may even grow it.

That was the experience of both PGF and PAF - however, in their case, the portfolios started performing as well. However, at the beginning, it was bad as the NAV was well above $1.00 but they couldn't get a share price above that. They started with small dividends fully franked and that discount slowly disappeared.

At its worst they even had a director phoning each shareholder to point out the underlying value and to gauge what shareholders thought.

I think the options are not going to be sold but I am less concerned about that. I think we are range bound between $1.00 and the NAV...

For those who paid the IPO price, it must be frustrating... You pay $1.10 these days and the option gets you say 3c in value but as the year trades out the option reacts badly if they have not made up the brokers commision in raising capital to get back to the IPO price. So it's a double-edged sword - In this case, I always thought that 1 year was far too short in a property development cycle for the options to have value. That was what persuaded me to pass on the IPO. Now the fact that the options are not in the money and my average price is around $1.02 I am happy that they may just die.

If the company needs capital they can arise 15% at the share price.

So I am expecting a dividend of say 0.5c now and 1c at final this year. I don't think a revaluation of the property assets will impact the share price at this stage. If it does I may well be a seller and take my short term profits...