Asset Plus (APL)

[ralph]

Was the drop in price from 60c to 35c a couple of years back caused by Covid? Interesting that there has been no recovery since then.

My opinion is that when the share placement was rolled out at 30 cps that set a benchmark and it has never really gone back up even though that money was well used on developments .

[Jantar]

The P/E is very low at only 5.16, and the NTA is $0.45. The dividends are also paying over 5% after tax.

All those together suggest that this stock is way undervalued, but the Divis alone make this one better than money in the bank. I am, happy to keep holding.

[ralph]

The P/E is very low at only 5.16, and the NTA is $0.45. The dividends are also paying over 5% after tax.

All those together suggest that this stock is way undervalued, but the Divis alone make this one better than money in the bank. I am, happy to keep holding.

Totally me to the divis constant ,cant work out why its being kept down but I to am happy to hold

[Jamie]

liquidate the company assets and return the $0.45 (shareholder funds) to shareholders........

[Scrunch]

Totally me to the divis constant ,cant work out why its being kept down but I to am happy to hold

There's a few key reasons:
1. Its small and therefore has less analyst coverage/less in-depth analysis.
2. Being outside key indicies like NZX50, there will be limited to no passive institutional buying
3. There isn't that much liquidity - which keeps the traders and big boys away
4. They have/are developing space which is not fully tenanted. A good tenant signing could be a re-rating event
5. Its unclear what exposure they have to rising construction costs on current developments. Fixed price contracts aren't always as fixed as they are presented to be.
6. Interest rates are rising, so the cap-rate used in valuations is also likely to rise. This will lower NTA's in the future so discounts rather than premiums to NTA's may become the norm in the sector for a while until valuations are done on current interest rate models.

That noted, you are correct that buying at a discount to NTA means a higher dividend yield.
Disc holding

[Grimy]

They did also recently indicate that a lot of their properties are not going to be producing income for a fair while due to ongoing development/redevelopment, so no paying tenants. I would not be surprised to see the div reduce before long for a year or more. Having said that (and as I am retired I look for dividends) a lower dividend may bring the share price down further, which would be a top-up point for me.

[bottomfeeder]

Yep have to agree Grimy. Unless the economy collapses totally, in another year and a half will be at .40 or .45, But I suspect Augusta will pick a time for a takeover at .35.

[ralph]

They did also recently indicate that a lot of their properties are not going to be producing income for a fair while due to ongoing development/redevelopment, so no paying tenants. I would not be surprised to see the div reduce before long for a year or more. Having said that (and as I am retired I look for dividends) a lower dividend may bring the share price down further, which would be a top-up point for me.

Good top up point for you now Grimy .

[Grimy]

Keeping my eye on it!
Almost bought some more yesterday, but not convinced it won't go lower.....
Already have a reasonable number too.

[ralph]

Keeping my eye on it!
Almost bought some more yesterday, but not convinced it won't go lower.....
Already have a reasonable number too.

Me to Grimy ,Time to reinvest some of those dividends 30 cps or less a good buy ,and just about everything is going lower!!