Hi team, I have just been scouring the latest issue of Intelligent Investor (#270), in it there is a detailed review on GSP. It s quite disturbing reading considering assurances on other forums on the viability of GSP. As many would know Intelligent Investor is quite a reputable publication which follows value investing principles, and as long time subscriber I value their opinion.. Anyway this review values the NTA of GSP at -27 $M, as opposite to the "official" valuation of 863 $M. As well 100 $M of debt will need to be refinanced in OCT 09 and another $250 in OCT 10. I wonder how the banks will value the business. I wish GSP all the best as I have a sizable investment in Navra Fund , which is somewhat , "directly affected" by events at GSP. Does anyone else have any diff news or opinions..... cheers p.
Paul While I also have serious concerns about GSP mainly because I have a reasonably large amount invested in the agribusiness products, I don't see their problems affecting the Navra fund. On what basis are you forming the link between the two? Gazza
Hi Gazza, fair question, the only connection I can make is the fact that a lot of strategies involving the Navra fund have a GSP investment included. If problems were to arise with GSP a lot of strategies would be out of balance and perhaps large number of units in the fund would need to be cashed in to rebalance. These are just thoughts going through my head as part of " stress testing" my own investment strategy. I chose not to invest in GSP , but I it pays to play what ifs .. in this investing environment. p.
Great southern shares are in a trading halt at the moment, pending release of some important information. hopefully its not that they are going belly up!
I read this, an article about Macquarie Infrastructure Fund, and an article about the fees that B&B charges their satellite funds (BBP in particular). Ordinary investors just serve like a cake to the fund managers and financial planners to slice up.. I can almost draw to the conclusion that whenever you see any fund or trust that involves a fund manager, don't invest (think most of the so called infrastructure or utilities funds, listed properties trusts, MIS etc.) MIS is Australia's biggest scam, writes Michael Pascoe The Long and Binding Road - Barrons.com
Hi Cheyeen, The worst is that the governments are selling out because they see $$$!!!! Shame on those governments around the world and developers doing dodgey deals. Superannuation funds are generally invested in fund managers, usually in Australian shares, international shares, fixed interest, etc. Infrastructure and Total Returns funds are the latest names which Industry Funds use to sexy up their investment menu. The reality is any Asset is either a Liability or Equity (A=L+E is a formula everyone who has studied accounting has seen at some time). Cheers, Dan
Well, I guess greed is not confined to the bankers. We heard the treasurer last night that the budget takes more from the "rich" because they can afford to. But why is there a clause to exclude themselves? So where is their share of responsibility? Business Spectator - More equal than others - Robert Gottliebsen How do we tell our children that this behavior is not acceptable when in real world even the government is doing it?
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