Up cycle now, page-52

An old measure of money supply. Totally unrelated to this subject though (I think what they were implying is that an increase in "broad money" [aka money supply] translates to acceptable equity dilution. This is only true if inflation equals annualised dilution - which is certainly not the case here!).

A better way to think about things is "Number of Shares / Net Equity". This tells you your "ownership" on a per share basis. Dilution may result in an increase in net equity, but in this case it hasn't as FLT is burning around A$600 million a year (monthly losses due to their cost base not being offset by sufficient revenue). Then compare your Net Equity per Share to your Net Dividend per Share (allowing for franking, if necessary). The yield then needs to be compared to others in the sector, and to the broader market. In my opinion, FLT fails this test (it is way, way above fair value) and is an obvious short at these levels. But others (who are simply talking up their own position) will undoubtedly disagree - for absolutely no reason at all!

Enjoy though.

Kit