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For me i question why they keep needing to raise money to invest. Would it not be better to grow slower using existing cash resources.
I was wondering if their has been a precedent for Argentina accepting the outcome from a US court previously, especially as they have a history of debt defaults.
Its certainly vauxhall conference in the size of the companies it invests in!, and yes the original set up was dubious. For me the good points are the asset management business that will become profitable following the acquisition and should now grow without further funding. The hope is for the direct portfolio to be self financing too, by future asset sales reinvested into the other holdings. Time will tell.
The discounted placing was disappointing , but its common place on aim as a quick way to raise money ,the directors are big share holders so have skin in the game.
Oakley issued shares at a discount before excluding PIs, ironically to Woodford, and was heavily criticised at the time. Now its fully funded its doing really well.
Wheres the information on how many cases they have settled each year, you would have thought the annual report would highlight this more clearly.
I guess that was part of the MW short attack argument.
It looks to me like the MMs are manipulating the price lower ready to accommodate a large sale.
I would have thought a PE firm would be interested in this.
The discount to NAV is now as wide as in the 2008 financial crisis. From what I have read they think prime and convenience shopping centres will hold up the best with a lot shrinking in size and part converting to housing. Its logical really too many shops and not enough housing.
I still think the London malls will hold there value compared to the regions due to its population density and development potential.
Looking at Burford its shares went sideways for about 5 years until it proved it could scale up the business. Juridica didnt do well and ended up de listing. Lit has done well so far and has had a good run from its listing price but its early days and scaling a business has its risks. Also Burford are opening an Australian office which could be more competition. Perhaps Miton have been selling as the price has got a bit ahead of itself.
The 5 year NAV performance is very similar. Both have low rents NRR £12, CAL £15 which would reflect CALs london locations.NRR has done well to ignore a lot of the fashion retailing but CAL has better locations around London.
The debt is held in silos and i can see the London Malls holding there value better than the regions.
For me the outlook will be clearer when brexit is resolved as the value of Stirling plays into this as well.
Given the slow NAV growth since inception wouldn't a VCT or PE fund that invests in larger companies be a better option?
Interesting comparing the two considering NRR trades roughly on a 10% discount to NAV and CAL over 50%. The bulk of NRR is in community shopping centres, begs the question would CAL be a good fit for NRR, its balance sheet looks strong enough.
This is being tarred along with high street retailing even though low rent community shopping isnt as badly affected.
Big discount to NAV and dividend yield, how much bad news is already in the price?
I think a lot will depend on how Brexit plays out.
Perhaps the London malls could be sold to re invest elsewhere or to reduce debt. Time will tell
Its walthamstow where they intend to build flats, I have read they are planning a 7 million pound investment to upgrade the Luton mall which seems to tie in with the proposed new football stadium development in the town.
Luton doesn't sound good but the other London Malls are doing ok. 60% discount to NAV is pricing in a recession like 2008. Once Brexit is resolved this could look a lot different.
NRR have identified space above their Mall car parks to build flats, there will always be community shopping on low rents which is what C&R do. Perhaps the cash flow could be used for development rather than dividends going forward to extract the value in the land. It looks like Intu are going down this route. It could even be taken private as the owner already owns 20% of the shares.
Most of the Malls are around London, I think there is hidden value here as the land could be used for housing as announced for Walthamstow
This share is trading at a 10%+ premium to its NAV, for an investment fund that seems a bit high but ST in the IC thought that the new investment policy warranted a higher share price, but with nothing to compare it to its hard to judge if this share is fully valued or not.