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To deliver cost-effective and timely divestments of remaining properties, and to deliver further returns of capital to shareholders.
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MPO must be buying in as large sales showing-not sure they are correct as price has risen. Or a large investor who realsies how cheap this Macau property play is.
Given Sale and rises in Macau property prices I would expect next NAV to be £2.75. Give it a 10 % discount and shares should be trading circa £2.47. Have a look at discounts on listed Property Investment Trusts. Company is buying in shares, so my estimated NAV will probably be low. The Company will have a wind up date-either next year or may ask shareholders for an extension-which I guess will be granted. But still in my opinion at low risk investment. But do research.
Not sure what is going on-huge buying to-day re sellers-but no price movement. I can only assume some off market selling going on, but why anyone would sell unclear. Potentially fund could be wound up next year. Very strange.
Had a look at DUPD and did some digging. Looks cheap, but for me Ukraine is to risky for an investment. Could go well, but could not get 100% confident. Invested in an Aircraft leasing company instead.
Thanks for your reply. You add a lot of value to these boards, much appreciated.
Will do-spoke to a mate covering emerging markets. Could be OK, but shall we say which Oligarch do they know!. Got side tracked on another company running restaurants in Macau-an area I more relaxed with at the moment as have done a lot of research. But will research DUPD and see if I can find an old mate at PG.
My pleasure. IC has a target price for DUPD of 57p . Waiting for your view. Many thanks ATB
DUPD- I will have a look-thanks for that mention, on the surface looks interesting-will have a closer look this evening.
The end date is next year, but I understand they are planning to ask Shareholder's to vote on an extension. I would read the accounts carefully-very detailed info on each property, exit routes etc. Sniper are very good at replying to emails, by the way as long as allowed to depending on question. I have discussed with experts in China re the relationship mainland and Macau/Hong Kong. These are important economic areas and am not sure they will do that much to restrict. They have a healthy cash balance and think they have been re-puchasing recently-no doubt it will be announced in due course. The sale proceeds will be available in Feb on completion, but they have plenty of cash to buy in at the moment. The Asset Value has performed well over the last 3 years, and whilst growth may slow, the share buy back should continue to move the share price up. Since Macau gambling industry is now bigger than Nevada-and when the bridge opens from HK , I would expect more tourism traffic. That's my take. No investment is 100%, but I have been unable to find anything on a macro or micro level do cause me concerns. I am not a fan of the Unit Trust Industry. Charges are high, spread is high on buy and sell, and can be forced to make sales if in a net redemption situation. Also good funds can grow to such a size with new money that it becomes harder to manage with regard original aims. I would rather invest in a Closed end fund or Investment trust-though I only hold one I.T at the moment invested in Japan, because I do not have the research capability to invest directly in Japan. Also like buying assets at a good discount, though compared to the 1980's there are few on the 30% discount that was common then.But I have not worked in a Unit Trust fund group since the early 1980's, so well out of touch I am afraid.
This looks a very interesting opportunity, good for adding a bit of diversification to the portfolio potentially. Thank you for the referral. Personally, I will need to more research on Macau property market generally and how as an SAR it is affected by the statutory measures introduced by the central Chinese government to prevent asset bubbles. I noted some comments on this in the latest RNS, so will return to that as a starting point. I know the measures haven't been entirely effective on a national scale, so would not go as far as to say this is 'safe as houses'. The extent of the NAV rise in the last statement is arguably of slight concern in the circumstances (property fund, China). In relation to this fund specifically, I gather from Sniper Capital's website that it is closed end, and note the share repurchase earlier this year. Has a stated end date been disclosed? I note the last repurchase came following an asset sale, so do you believe it would be reasonable to infer that the next may come following completion of the currently ongoing sale next February? On a more o/t question, as someone with personal experience of the industry, what is your view on managed funds of the type advertised to retail investors on fund supermarkets? I know some high profile investors (notably Buffet) are very critical due to the expenses in the face of inconsistency, and advocate tracker funds as an alternative.
Interesting article that popped up on my Alert http://blogs.barrons.com/emergingmarketsdaily/2013/09/24/las-vegas-sands-bullish-on-asians-macau-is-all-about-cotai/
Ok. I am confident in this one. ATB
Fg...not in mate. Just following up on Oldstockbrokers recd and checking it out. But hope all the best your in.
I am in here too! We are going to have fun then...Also interesting is DUPD, a bit volatile maybe but with huge potential according to someone...
Oldstockbroker Looking good.here too mate. Good.find
"Macau Property Opportunities (MPO) says its net asset value rose by 31 per cent to the equivalent of 260p a share in the year to June as the company’s portfolio grew in value by 28 per cent to $453m. The company bought back $22.8m worth of shares in the period and ended the year with $14.8m in the bank. Buy. " My view-the stock should be trading at a 10 % discount (that is generous) so share price should be £2.34. And the sale is coming through, adding another 10p to NAV. Well undervalued given the performace of the manager's. The Company can buy back another 14.9 % at a discount, so share price is protected, and NAV will increase as share buy backs continue.
"Since the fiscal period end, we have also entered into a Sale and Purchase Agreement to dispose of our Zhuhai projects,APAC Logistics Centre and Cove Residence for approximately US$64 million – a 42% premium to their latest combined valuation.Full completion of the deal is expected by end February 2014." Zhuhai was valued at $45.4m in accounts end June, so on completion we will see a further increase in NAV.
Announced £2.60 per share. We lla bove my estimate of £2.42. Need to read in full to see what are the factors.
Last few transactions must be buy backs-follow this closely and rarely see that sort of purchase spend.
Results will be out with NAV. Be interesting read.
RNS on 20th August stating EGM on 19th September to approve buying own shares, so should soon see price rise as company buys in the market. It'll help increase NAV and hopefully discount will narrow. IC target 220p.
I fail to understand why this stock is trading at such a discount, Fund has performed well, shares are being bought in, and Macau is booming, I could argue should be at a premium given performance, The NAV will be out soon and the price will move up, but I suspect share price will still be a discount.
I am assuming the sales were purchased by the company-i think price was in range for buy back. That will incease NAV for shareholders.
MPO Results will be releases on 23rd Septemder 2013.
Thanks-not a subscriber to IC so missed that. At least we agree on a target price of £2.20, but obvioulsy have not seen his rationale.