We are looking for underlying NPAT of $29m, and a reported number of signifi cantly less due to impairment at the half year result – the reported number will be noisy due to one-offs. • Current capital raising endeavours in several funds APZ manages are providing distraction, and near term catalyst is more about sorting this out than the full year result. • The biggest fundamental risk is rental income; we believe there is no question this will slip, however on balance the slippage will not be as severe as is currently priced. • In our view APZ continues to trade well below NTA of $0.78, trades on a PE of 5x 2010 and delivers an attractive yield of 16% per annum. These criteria would usually present a strong investment case, however a sentiment change is required to see share price traction. • PT is $0.62, an arbitrary 20% discount to current NTA.
Bought in at 0.33 last week, and looked to be a good move. I guess, one should find a good entry point, SP seems to be forming a base at 0.40.
DYOR, good luck to all holders.
APZ Price at posting:
41.0¢ Sentiment: LT Buy Disclosure: Held
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