Net Tangible Asset

[kiora]

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??

Poor use of capital?

[clearasmud]

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??

MCK get their assets revalued every year.
Of course nta is important.
Buying now is somewhat similar to buying a 500k house for 100k.
Is management good? Yes it is, which assures me.
Just topped up on the close.
Good luck to us.

[kiora]

MCK get their assets revalued every year.
Of course nta is important.
Buying now is somewhat similar to buying a 500k house for 100k.
Is management good? Yes it is, which assures me.
Just topped up on the close.
Good luck to us.

Good luck
https://stocknessmonster.com/charts/mck.nzx/

[LaserEyeKiwi]

Agree entirely - MCK is definitely the best pure value play on the NZX currently. It earned $84 million in operating profit last year, which gives a good indication of the earnings power of the underlying assets. Even in a worse case scenario where tourism NEVER returns at the same level (unlikely) - the hotels are still very valuable properties in highly desirable locations that can easily be converted to residential for rent or sale. While I expect the assets to be revalued down slightly over coming year, I think you are still looking at an eventual doubling in share price in the long term.

The company is being priced like a distressed asset, when in fact they are still guiding for profitability this year and looking to take advantage of others distressed position to pick up more cheap assets.

Someone above said that net cash is close to Zero, this is incorrect. They have $164 million in cash and cash equivalents, vs $67 million in debt.