Originally Posted by
Dentie
Nothing abnormal at all with your last sentence Oldmate, but I don't necessarily agree with your first sentence. Not all purchases in the share market "are a bet" as such (like as in a gamble on the pokies etc), especially if you are an Investor. If you are a Trader it probably can be seen as gamble because you are not investing in the fundamentals of the business, you are simply betting on the short term movements of the SP. A lot of share buyers do a lot of research etc because they are investing in the business and becoming a part owner in that business. So, they are absolutely wanting to get a return on their investment....normally in ongoing income (dividends) or capital gain (sustainable SP increase over time). For dividends you need a healthy NPAT and for capital gain you need a sustainable business with increasing equity. If either of those are missing over time, there are problems. At the moment, I don't see either in XRO, which is the reason why I can't reconcile the current Share Price....to me, there is nothing tangible backing it. It is way ahead of itself - based on what might happen sometime in the future. This is not a criticism of the product btw, just how I see the SP compared to the current business performance.