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Junior Member
Recently bought a rather small amount at $2.70. Should be a good year.
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I notice that it's selling way below NTA. Is that because people don't believe the business is good enough to realise a profit relative to the value of assets with no likelihood of anyone buying to strip?
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Originally Posted by percy
There was some discussion about MCK, on thread 2017Stock Picking Contest,page 2, posts #19 to #24 and post #28.
Thanks, i,d missed that .
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Any one wanting to find out a bit more about MCK should go to www.nzx.com then type in MCK and read their overview, before going to announcements and reading MCK's interim report.
Of interest to us will be MCK's full year result which is due late February.
Last edited by percy; 29-01-2017 at 09:30 AM.
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Originally Posted by Lewylewylewy
I notice that it's selling way below NTA. Is that because people don't believe the business is good enough to realise a profit relative to the value of assets with no likelihood of anyone buying to strip?
I think you will find it is too tightly controlled for any take over,so maybe it comes down to earnings.
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Originally Posted by percy
I think you will find it is too tightly controlled for any take over,so maybe it comes down to earnings.
I've often thought about this. What are the chances of the majority owner deciding to buy out minorities at some stage - or is there some advantage in retaining NZX listing?
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The NZ listing
Originally Posted by macduffy
I've often thought about this. What are the chances of the majority owner deciding to buy out minorities at some stage - or is there some advantage in retaining NZX listing?
The NZX listing gives the advantage of having the market set the value of share price.
It is also easier to raise capital or to borrow, if the company is listed.
The problem for us shareholders, is whether the controlling shareholders will share the spoils with us.
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Yes, valid reasons, percy, although I would think that the parent company - and its ultimate parent, the Hong Leong group - would be able to borrow more cheaply than MCK. Current borrowings from the parent are shown at 2.27%, admittedly for a relatively modest $5.8m.
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Originally Posted by macduffy
Yes, valid reasons, percy, although I would think that the parent company - and its ultimate parent, the Hong Leong group - would be able to borrow more cheaply than MCK. Current borrowings from the parent are shown at 2.27%, admittedly for a relatively modest $5.8m.
Yes the Hong Leong Group would most probably be able to borrow cheaper than MCK.
It would make it easier for them to borrow, showing their investment in "listed " companies rather than "unlisted" companies.
Much easier for lenders to gauge "real" values.
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The other point to bear in mind is that the Hong Leong Group controls "only" 65% of Millenium and Copthorne Hotels plc, the owner of the company that owns 75% of MCK! So a takeover of MCK wouldn't be a simple matter.
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