- Yield = 9.28%
- Price-to-book Ratio = 0.776
- Assets per unit = $0.132
- Debt per unit = $0.007 (including current liabilities)
- Gearing = 5.4%
- Secured NAV = $0.125 (128% of trading value)
Macquarie International Infrastructure Fund is one counter which consist of only one asset i.e. an expressway in China and is in the process of looking at opportunities to divest and wind up the company. They reported their results recently.
Since they have not sold it, I am going to take it that it will continue to exist. And its yield is quite good at 9.28%. Since it is going to wind up soon, we look at the NAV which shows very good sign. Firstly, price-to-book ratio is only 0.776. This means we are looking at about 22% discount. Moreover, it does not really have debt so it is fully owned by you. Thus the Secured NAV is 128% of the trading price.
I believe that they are trying very hard to sell at a fair price so I am going to assume that their NAV is $0.125 and I am going to get $0.125 per share back. Thus, I believe this is going to be a good deal to earn 22% more in capital. Even if they take longer to wind up, they will still need to pay dividends which is currently at 9.28%.
Patience is the key and I am considering putting money into this. If it does not wind, good. If it winds up, it should be better.
Since they have not sold it, I am going to take it that it will continue to exist. And its yield is quite good at 9.28%. Since it is going to wind up soon, we look at the NAV which shows very good sign. Firstly, price-to-book ratio is only 0.776. This means we are looking at about 22% discount. Moreover, it does not really have debt so it is fully owned by you. Thus the Secured NAV is 128% of the trading price.
I believe that they are trying very hard to sell at a fair price so I am going to assume that their NAV is $0.125 and I am going to get $0.125 per share back. Thus, I believe this is going to be a good deal to earn 22% more in capital. Even if they take longer to wind up, they will still need to pay dividends which is currently at 9.28%.
Patience is the key and I am considering putting money into this. If it does not wind, good. If it winds up, it should be better.
bro its ROE is -ve. may not be a good idea. just to let u know
ReplyDeleteThey sold their business at a lower price than expected.
ReplyDelete