Net Tangible Asset

[Sgt Pepper]

I have recently bought some Millennium Hotel (MCK) shares for $1.80. The NTA is $4.50. How important is NTA for the value of a share??

[Sideshow Bob]

A2 Milk - Share price $19.60, NTA $1.28

Depends on the share.

[winner69]

A2 Milk - Share price $19.60, NTA $1.28

Depends on the share.

Or SCY woth NTA 77c and shares zilch

[Stranger_Danger]

It means nothing at the moment, that is for sure. You should be more concerned with NSM - Net Speculative Momentum.

[Cadalac123]

For a company that runs on tangible assets, and who is dependent on tangible assets as a means of their valuation and revenue generation NTA can mean something

Don't be fooled into thinking it has a strict value or can act as a proxy for intrinsic value though

[Sideshow Bob]

I have recently bought some Millennium Hotel (MCK) shares for $1.80. The NTA is $4.50. How important is NTA for the value of a share??

Actually an interesting one as just looking at their Balance sheet, they have about $186m in cash & receivables (31/12/19), market cap of $211m....net assets of $807m - and pretty much all tangible assets.

[blackcap]

Actually an interesting one as just looking at their Balance sheet, they have about $186m in cash & receivables (31/12/19), market cap of $211m....net assets of $807m - and pretty much all tangible assets.

However if you take out the debt and liabilities, then net cash is almost zero. So the question must be, what do you think those property and equipment is worth. In the current climate maybe not so much? Well the market seems to be discounting it. Interesting.

[traineeinvestor]

Actually an interesting one as just looking at their Balance sheet, they have about $186m in cash & receivables (31/12/19), market cap of $211m....net assets of $807m - and pretty much all tangible assets.

That's for the consolidated accounts which includes CDI which is where most of the cash is held.

Agree that the discount to NAV is huge but (IMHO) the consolidated accounts have the effect of exaggerating the strength of MCK's balance sheet at least a little bit.

Also, as blackcap points out, there has to be a question mark over the actual value of the hotel assets in the current market conditions.

[Mr Slothbear]

Companies with a high proportion of intangible assets will significantly outperform those relying on physical asset such as brick and morter.

take A2 vs synlait as the perfect example

much easier to scale a brand or replicate software than to build a new factory


this is where warren b really stepped away from ben g who focus on NTA.

The secret to Sees candy and many of buffets favourites comes down to the intangibles

[percy]

Well I am happy to stick with my rule of seeking eps growth being higher than the PE ratio.
I also always deduct intangibles from the balance sheet,which gives me what I find a truer picture of the company's health.