I too wondered around the discount to NTA. The other thing to consider here is the sell side, and their motivation. Why are they exiting the market in such a big way? Threat of more regulation? COVID jitters? or something else?
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Good post. Another thing to consider is that this was forsure offered to all the other major players and probably a few others, and this is the best offer they got which says something.
How come Arvida doesn't have to instantly recognise an impairment? The carrying value of the asset is clearly more then the recoverable amount as evidenced by the discounted sale.
All this can lead to is a bloated NTA and maybe the ability to take on a tad more debt without looking over-levered.
Butted into a conversation a couple of guys at the cafe we’re having this morning.
Their view basically went along the lines of buying a lot of dodgy leaking buildings that nobody else really wanted (that’s why they are cheap) not the best thing ,,,,once leaky always leaky until they get knocked down.
But the thing that struck me was one thought it was just a big ego trip for the head honchos …..getting big enough to be 25th in the NZX50 give them a high.
They not going to give them any more cash …..and one said might sell out if the share price spikes in next month or so.
No worries’ Winner seems a bit worried
My Mum is in Knightsbridge Mairangi Bay. No leaky problems there and the village has just had an upgrade.
Cant please everyone.
Nice having a Rights Issue for once .....but if you don't get any extra shares in Placement and do take up your rights you'll still end up owning 13% less of the company than you have now ...dilution eh
No worries though as it will fade into a distant memory when the share price hits 3 bucks