Justification?
I have been investing in the market for a long time and I've learnt to trust my gut.The $1.75 ?...its an opinion based on research and my transcending colon.
The stock market and company shares prices are based on fuzzy and imprecise science coupled with a herd mentality.As I said for me its a $1.75 share .Your research and gut may come up with a different number.You have to live with that number just like I do.
Maquarie will tell you that there is a rough margin of error around 15% with their valuations.They could be off by 30 cents either way.If they had survived the GFC unscathed they would have more credibility.They didnt and for me they dont
What was your purchase price for your QF shares ?
Buy a book called The Intelligent Investor by Benjamin Graham.Its a game changer
The intrinsic value of a share
An investor may calculate the intrinsic value of a share by differing methods and will eventually come up with a price that he or she believes represents good buying value. Graham had his methods of calculating intrinsic value, Warren Buffett has his, other successful investors have theirs.
Graham acknowledges, however, that calculations may be wrong, or that external events may take place to affect the value of the share. These cannot be predicted. For these reasons, the investor must have a margin of safety, an inbuilt factor that allows for these possibilities.
~ Benjamin Graham
$1.75 allows me my margin of safety.If Q shares drop to this price they will be within my margin of safety and for me they are a buy