Monark,
Who said I was backing management? I'm not. But I don't run away from bad management - I would much rather take them on and I have done so in many cases. I have taken four cases to the Takeovers Panel and stood for Boards on two occasions when I was very dissatisfied with the way they were running things. I am West Australian and will be at the next AGM.
When I buy a stock that has been in trouble I would much rather it has a positive net tangible asset backing. I know these commercial properties have been written down a lot but we still have a positive NTA and surely the write downs are close to finishing particularly as they are about to be sold.
I think it is harder to turn around when you have large debt and no tangible net assets. Just as an example I looked at UGL just a day or two ago with the idea of buying and saw that it had negative NTA so I let it go.
In the case of APZ, they do have something to sell and there should be plenty left over after debt is paid.
For every stock that you could present as a loser going forward from this situation, I think I could come up with a winner. Of course I make mistakes but I have done this for a very long time and it works for me. A similar one that I am working on now is Devine (DVN) which has a terrible report coming and is trading at less than half of its NTA.
GPASAS
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