Property – do you know what return you are making

Every now and then I buy a couple of property investing magazines, just for interest sake. Yesterday I saw one particular comment from a real estate agent that prompted this post.

“I believe in 10 years time we should see prices double in South Caulfield”. Read more of this post

Neptune Marine – I told you so

In my post of 6th Dec 2010, Neptune Marine – Beware of “Growth through acquisition”, I commented that growth by acquisition doesn’t work most of the time. Here’s the proof. Neptune Marine have released a statement on 1st Feb 2011, stating they are going to write down the value of their assets by $99.5m. The company is also selling divisions and trying to restructure itself (the company uses the word “rationalised”), in an aim to return to profitability. The blames lies fairly and squarely at the feet of the board and CEO. All those overpriced acquisitions have now cost shareholders.

The company is still trying to raise $80m in equity, and have released a prospectus for a non renounceable rights issue. New shares are being issued at 5 cents – compared to last trade at around 20 cents. Good luck if you’re an existing shareholder.

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