Thanks Freespins.Luckydog, "will we get back to 15 cents anytime...

Thanks Freespins.

Luckydog, "will we get back to 15 cents anytime soon?"

I hope so.

My view is this: the market is simply a popularity contest over the short term. Clearly LLP is out of favour atm and I'm sure day-traders won't give it a glance anytime soon. Plus, we're yet to fully ride out the markets reaction to the asset write downs that are coming with the reporting of the 08/09 results.

But, over the long term SP simulates business performance.

So, the real issue you have to consider imo is: Is LLP a good business for the future?

I (cautiously) believe it is, given the demographic trends, its tie up with LLC and its debt levels now been more under control. Plus, it has the ability to take advantage of future growth in a growing industry.

I'm yet to make a decision on the management as they are new.

Then you have to think about the price you pay for a share of a business that you believe has a future.

Pay too much and your investment return will be lower.

Is the current SP good value?

I believe so if you look purely at what assets you acquire.

But...that's not the be all and end all.

The management have got to generate a decent return for the assets they have at their disposal...and this is where the retirement industry is floundering at present.

Though, the longer we go, the closer we get to the generation of greater profits under the DMF model.

But, ultimately its about management and their ability to generate a decent return.

I've written off Prime trust (PTN) as their management are incompetent and the company is now a walking corpse fending off the vultures.

The management of LLP, as I said, I'm not so sure of and am watching them closely.

FKP...I think show the greatest promise given the quality of their assets and also SGP's stated desire to expand in this area and with them having a right of refusal over the FKP retirement portfolio.

Also I think the GFC has given FKP management a real fright and has forced them to focus on their knitting and not galivant around the world buying assets for the sake of growth.