MET - Metlifecare - one for the fundies?

[winner69]

Not silly..... It's all about % gains and doing the best with your capital.

While a lot of eyes have been on MET (well done holders) there have been some impressive/better % gains in some small caps such as PLX, PEB etc.

This chart compares gains in MET (in Blue) v PLX (in red).

Attachment 11772

A couple of points that I think need clarifying (I hope I have these right)

Firstly, I would imagine that the dropping of the current legal action will be contingent on 75% of the shareholders ratifying the new Scheme of Arrangement. So there isn't a scenario where the new scheme gets voted down and the Swedes walk away scott free - the MET board (the new board presumably) can still proceed to enforce the original $7

Also, the swedes are also going to reap an unexpected, and quite significant bonus in the new deal (and one which hasn't been mentioned anywhere as far as I can see) and that is the ability for them to retain all of MET's existing carried forward tax losses so that these can be used to offset future taxable profits (should there be any taxable profits in the future) - I wonder what that is worth to them. This due to a pending IRD rule change.
https://www.ird.govt.nz/covid-19/lat...ntinuity-rules
All in all a right doing over of the MET shareholders in my opinion

Poet ...last Annual Report - There are no unrecognised tax losses for the Group at 30 June 2019 (2018: nil)

[winner69]

Beagle commented — “The question of undue influence must surely also be asked. The N.Z. super fund has a director on the board and it was clear they wanted out rather than litigating this thing. Did that director having such a clear objective influence the other directors apart from Kim Ellis”

What about Alistair Ryan (voted yes) and his Chairmanship of Kingfish Funds etc.

Don’t always hear what the Board vote is in these cases. Kim probably said let’s tell everyone I voted NO si I don’t have the hassle of justifying giving away the company like he had to endure with giving away Waste Management.

[winner69]

That shareholders meeting on Friday that never took place had a resolution that didn’t really mean very much at all ...only appeared to be an exercise in making shareholders thinking they were involved.

If the resolution was passed or not the Board still had the option of walking away from pursuing that enforcement legal action.

Seems both sides are pleased where things stand at the moment .....also seems many (possibly including EQT) will be happy if more than 25% vote NO

[Beagle]

https://www.interest.co.nz/property/...y+11+July+2020

EQT must be drooling at the thought that after rolling the leading sheep over so easily all others might queue up in an orderly manner like lambs to the slaughter. They must think Kiwi investors and directors are a bunch of pathetic wimps.
More anecdotal evidence that real estate is doing just fine.

[Raz]

Interesting thread, nice to be a fly on the wall... would answer a few questions concerning timing of exit.

[Beagle]

You seem to ignore a possible key factor in recent high real estate prices ( at least in my region) is the impact of wealthy Kiwi's returning home.....(just saying)

I agree 100%. There are over one million ex pat Kiwi's overseas.
I think in a Covid 19 ravaged world Snoopy has completely overlooked considering how many tens of thousands, perhaps hundreds of thousands, will want to come back.
If we can only manage 5,000 per 14 day quarantine cycle, it'll take 280 days per 100,000 who return which suggests the exact opposite of what Snoopy has suggested and we could be on for a protracted period where demand vastly exceeds supply and we all know what happens to prices when that situation arises. Perhaps this has already started ?, see linked article in post #3012 above.

[Baa_Baa]

I think you’re right @beagle there is and will be a relentless return to ‘safe NZ’ driving pressure on housing, confounding the naysayers who expect a ‘normal’ recession. The caps on returnees will be lifted in time. It is different this time, the fundamental drivers are founded in an event that has no precedent for many decades. And the population aging is accelerating, not slowing down. Bodes very well for all retirement sector, meeting demand with supply, releasing housing stock into the market for the younger ones.

[Leftfield]

I think you’re right @beagle there is and will be a relentless return to ‘safe NZ’ driving pressure on housing, confounding the naysayers who expect a ‘normal’ recession. The caps on returnees will be lifted in time. It is different this time, the fundamental drivers are founded in an event that has no precedent for many decades. And the population aging is accelerating, not slowing down. Bodes very well for all retirement sector, meeting demand with supply, releasing housing stock into the market for the younger ones.

A recent property auction in my region saw a property with a CV of $1.2 mill get sold for $2.1 mill.

Purchasers were Kiwi's returning from overseas due to Covid-19.

[dobby41]

A recent property auction in my region saw a property with a CV of $1.2 mill get sold for $2.1 mill.

Purchasers were Kiwi's returning from overseas due to Covid-19.

Yeah - CVs are really lagging and Aucklands revaluation will probably be put off another year.
CVs are, and always have been, mostly nonsence in valueing residential property.

[Bjauck]

A recent property auction in my region saw a property with a CV of $1.2 mill get sold for $2.1 mill.

Purchasers were Kiwi's returning from overseas due to Covid-19.

UK house prices are dropping - maybe owing to Brexit and Covid as kiwis and other people move away back to their home countries.

https://www.bloomberg.com/news/artic...all-since-2009