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Author Topic: Freedom Property Fund - Value share?  (Read 11682 times)

Samurai

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Freedom Property Fund - Value share?
« on: October 16, 2015, 01:04:11 pm »
Hi guy's

Freedom Property Fund currently trades at around 18 cents and has a NAV of 130.4

With the astronomical success of Calgro, can Freedom  replicate a similar achievement over a long period of time say 5 to 8 years.
I am not fond of penny shares as most of them trade low for a reason, but this company stands out for me or perhaps a am a little too greedy today.

Whats your opinion on this company?
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Orca

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Re: Freedom Property Fund - Value share?
« Reply #1 on: October 16, 2015, 01:16:07 pm »
What is the short name or code for this stock?
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Samurai

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Re: Freedom Property Fund - Value share?
« Reply #2 on: October 16, 2015, 01:18:02 pm »
FDP
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Fawkes85

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Re: Freedom Property Fund - Value share?
« Reply #3 on: October 16, 2015, 01:32:15 pm »
P/E is 13.58 and P/BV is 1.26. Going by those indicators alone it does seem undervalued. But have to wonder why it fell from 50c to 18c since January (EDIT: or rather why it fell from R1 since listing last year). Need to understand that before you press the buy button.
« Last Edit: October 16, 2015, 02:53:49 pm by Fawkes85 »
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Orca

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Re: Freedom Property Fund - Value share?
« Reply #4 on: October 16, 2015, 04:35:54 pm »
Been in a bear mode since inception with no signs of a reversal. I would not be surprised if it gets suspended next year.
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Samurai

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Re: Freedom Property Fund - Value share?
« Reply #5 on: October 17, 2015, 11:32:13 am »
So instead of being a good Samurai and practising my chiburi, I have been reading ''Sens'' and articles relating to this company.

It appears that the share price lowered as management issued new shares in lieu of buying land ownership for future development. This is good as it means that the company owns assets in the form of land. It also gives the impression that more developments might take place in the future.
Hence the management have a bigger picture that they work towards to.

The only drawback which I can identify at this point is that land ownership cost money in the form of rates and taxes and some land parcels might need to be rezoned for residential purposes. This in itself can place a burden on the cash flow that could have gone into developing properties faster.

Classic case of a catch 22 situation, but then again courage is one of the eight virtues of the Samurai.

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Samurai

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Re: Freedom Property Fund - Value share?
« Reply #6 on: November 30, 2015, 08:50:00 pm »
Interim results not looking so good, NAV standing at R1.18 down from R1.34, still trading at a discount?
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Orca

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Re: Freedom Property Fund - Value share?
« Reply #7 on: November 30, 2015, 11:41:33 pm »
I cannot fathom why you would even think of investing in a stock that has been in a bear mode for so long. There is no indication whatsoever of a reversal fundamentally or technically.

Look for stocks that have good fundamentals and have an upward momentum. Not down.

In my experience, I have found that stocks that have great fundamentals and good upward trending chart will carry on up for some years.
CML was a good example.

It has been proven that long term, upward trending stocks will carry on upwards for some time. This has been very successful for me so far and I suggest you dump this one.
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Shi

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Re: Freedom Property Fund - Value share?
« Reply #8 on: December 01, 2015, 01:45:11 pm »
Read the listing prospectus where they indicate that the shares they issued to the sellers have certain conditions attached to them. Conditions like only being able to sell a small percentage of their shares after a certain time. Many ppl think this is keeping the share price down. These conditions are still in place for at least 3 years (IIRC).
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Orca

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Re: Freedom Property Fund - Value share?
« Reply #9 on: December 01, 2015, 06:27:01 pm »
Quote from: Shi on December 01, 2015, 01:45:11 pm
Read the listing prospectus where they indicate that the shares they issued to the sellers have certain conditions attached to them. Conditions like only being able to sell a small percentage of their shares after a certain time. Many ppl think this is keeping the share price down. These conditions are still in place for at least 3 years (IIRC).

Then dump it in batches. A Fed interest rate hike this month will hit property stocks and devalue the ZAR against the Dollar.
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Samurai

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Re: Freedom Property Fund - Value share?
« Reply #10 on: December 01, 2015, 08:46:07 pm »
Cant argue against you Orca, will keep the shares I've got on a pray and a wing. I understand around 2020 management might implement a share buyback initiative, saw an interview on youtube.  If this happens perhaps they will trade closer to the NAV?
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