NAP - wakey wakey

[I.T.Ancient]

Looking good for contrarians.

New manager doing what had to be done. Shareholders who were in denial taking fright, thinking the messenger might be to blame, and fleeing.

Capital raising at attractive terms for shareholders.

Very ugly chart. Very reminiscent of the CNZ installment receipt position back in 2000.

I've been buying. Actually, I'm increasingly cashed up and this is the only thing I can find to buy!

[Snow Leopard]

So 7.75% on the CPU's till May 09 and conversion to ordinaries at less than 60c a pop.

Claim that they expect to pay out 5.5-6.5c (8.0-9.5% gross)pa per unit in the meantime and possible repayment of $25m of capital notes.

Assuming no particular change in the net asset position over the next three years I think that equates to about 80c a unit once all the dust has settled. That would be about 23% ahead of your cost if you bought units at 68c and then taking up your full CPU entitlement.

Summary: Nice income stream at 8.0%pa gross and reasonable chance of about 8%pa average capital appreciation till mid 09.

Have I got that about right?

[I.T.Ancient]

I made it conservatively 14% pa compounded over the three years. Close to your 8+8.

Doesn't sound very thrilling as we come to the end of a bull market, but IMO come May 2009 looking backwards 14% pa will look very good.

[Snow Leopard]

quote:
NAP
29/05/2006
ENTITLE

REL: 1635 HRS The National Property Trust

ENTITLE: NAP: notification of record date for CPU entitlement

NPT announces notice of record date for CPU entitlement as Wednesday 14 June
2006. Entitlement letters will be mailed Monday 19 June 2006.
End CA:00131944 For:NAP Type:ENTITLE Time:2006-05-29:16:35:28

SO, no need to rush then.

[lambton]

quote:Originally posted by Paper Tiger

quote:
NAP
29/05/2006
ENTITLE

REL: 1635 HRS The National Property Trust

ENTITLE: NAP: notification of record date for CPU entitlement

NPT announces notice of record date for CPU entitlement as Wednesday 14 June
2006. Entitlement letters will be mailed Monday 19 June 2006.
End CA:00131944 For:NAP Type:ENTITLE Time:2006-05-29:16:35:28

SO, no need to rush then.

Not too bad a return. But can you trust these turkeys?

[Snow Leopard]

I am kind of assuming that St Laurence has replaced the turkeys.
They are under-righting the CPU issue for a reasonable fee, and the CPU deal looks a pretty good deal to me.

[Snow Leopard]

I have a bought a few NAP units over the last week or so but unless the price drops will not be acquiring any more.
Record date for CPU entitlement is next Wednesday 14th June, and according to the NZX diary CPU rights start trading the following day.

I see the CPU as a good buy at a dollar a pop, so I will take up my full entitlement, offer to buy some extra and maybe pick up some rights if the price is right.

Theory is that this is intended as a long termer with the CPU's converting in 2009. I see this as a reasonable buy under the present circumstances and diversifies the long term portfolio to 7 different companies.

[Snow Leopard]

It is always nice when the Market endorses your decision and lifts the SP 7% above your average buy price in a few days.

Just hope the next few years follow the plan.

[I.T.Ancient]

I'm going for the +35% too. It will be interesting to see if there is any significant volume of rights on offer.

[Lizard]

Thanks for the thread ITA (also PT for the additional analysis). I didn't get my whole order filled at 67cps, but what I did get is doing nicely. Thanks.