Recently bought a rather small amount at $2.70. Should be a good year.
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Recently bought a rather small amount at $2.70. Should be a good year.
I notice that it's selling way below NTA. Is that because people don't believe the business is good enough to realise a profit relative to the value of assets with no likelihood of anyone buying to strip?
Any one wanting to find out a bit more about MCK should go to www.nzx.com then type in MCK and read their overview, before going to announcements and reading MCK's interim report.
Of interest to us will be MCK's full year result which is due late February.
The NZ listingThe NZX listing gives the advantage of having the market set the value of share price.
It is also easier to raise capital or to borrow, if the company is listed.
The problem for us shareholders, is whether the controlling shareholders will share the spoils with us.
Yes, valid reasons, percy, although I would think that the parent company - and its ultimate parent, the Hong Leong group - would be able to borrow more cheaply than MCK. Current borrowings from the parent are shown at 2.27%, admittedly for a relatively modest $5.8m.
The other point to bear in mind is that the Hong Leong Group controls "only" 65% of Millenium and Copthorne Hotels plc, the owner of the company that owns 75% of MCK! So a takeover of MCK wouldn't be a simple matter.