Macau Property Opportuni... Share Discussion Threads

[bigmike100] 23/1/2014 20:19

I can't see anything going on any ideas. I am a beginner compared to some of you guys. Could it be a tree shake?

[rbdc1] 23/1/2014 17:14

Odd to see a 4% drop!

[shavian] 30/12/2013 08:39

Fat finger syndrome, sorry. Take the other two as extra Christmas presents. Glad to see MPO getting a mention in the Telegraph's end of your round up as the best performing investment trust of 2013. So good I said it thrice!

[bigmike100] 26/12/2013 10:32

I got that one three times Shavian was that my end or yours?

[shavian] 25/12/2013 09:18

Just wondering what effect this Chinese banking squeeze will have on the economy of Macao, and hence on property values there. In the meantime, don't let it spoil your Christmas!

[shavian] 25/12/2013 09:18

Just wondering what effect this Chinese banking squeeze will have on the economy of Macao, and hence on property values there. In the meantime, don't let it spoil your Christmas!

[shavian] 25/12/2013 09:18

Just wondering what effect this Chinese banking squeeze will have on the economy of Macao, and hence on property values there. In the meantime, don't let it spoil your Christmas!

[stuffee] 19/12/2013 08:58

Sammu
I agree.
I would oppose having to wait for a full 5 years before the next wind up vote but might well be sympathetic to say a 1 or 2 year extension. That should probably reap the benefit from the bridge opening in 2016 as well as the full gain on Senado.

My guess is that Sniper as an interested party would NOT be able to vote on such resolution but this would be subject to discussion with the Regulator.

[sammu] 19/12/2013 00:11

I think the gap to (the expected future) NAV will continue to close over coming months, possibly helped by newsflow.
I'm interested in whether Sniper with 11.14% (and growing) will be exluding from voting for or against the termination of their employment (which they have stated they are against).
I don't think sniper have said why they don't think it is in the best interests, but if it is becuase they need more time to develope Sendo Square then may be it would be best to give them another year, but not open ended.

I think a proposal for an annual wind-up vote would be an interesting compromise.

[chorister] 17/12/2013 14:40

I think there's another consideration re the winding up.

I am almost certain that the Board is already on record as saying clearly that they do not believe that winding up will be in the shareholders' best interests. That may or may not be true, but in any event it will be an untenable position unless they can close the gap between the share price and NAV per share, because with a share price of c215p and NAV of c300p shareholders could get a notional 40% premium by voting to wind up.

IMHO opinion the Board will do everything they can to close that gap, with buy backs, disposals etc, which makes a very strong investment case for the next year.

[bigmike100] 17/12/2013 13:40

Many thanks stuffee, have a good day.

[stuffee] 17/12/2013 11:49

BigMike
Resolution has to be put to shareholders to wind up etc by Nov 2014. If passed (being special resolution requires 75% majority of those voting), Board will immediately accelerate sale of assets. I assume Board will opt to liquidate the company, rather than some alternatives reconstruction, unless it produces more value. The Macao real estate market is both liquid and pretty hot so I do feel majority of assets will be sold within say 3 to 6 months including Waterside; inevitably there will be a few that might take longer. I feel assets realised could be 300p (even allowing for Sniper's closing fee) and this could begin to be distributed to shareholders from mid 2015. Although say 80% might be distributed then, it might take a few more months for the rest to be sold.

[stuffee] 16/12/2013 20:59

Bigmike
Interesting question re Company buying in shares and winding up resolution. MPO hasn't bought any significant investments for last two years and has been gradually selling its investments. I suspect it could well be gradually preparing for liquidation of the company. If assets do reach 300p, buying in a further 5m shares at 202.5p will increase asset value by 6p.

Incidentally I much prefer MPO using £10m to buy in shares rather than pay any dividend.

I suggest Sniper has the same view as us - sound buy last week at 202.5p with potential liquidation proceeds of maybe 300p in mid 2015. The surplus it could make on its shareholding would far exceed its annual management fees.

[bigmike100] 16/12/2013 16:26

Stuffee could the company buying shares to cancel and sniper buying shares have anything to do with the possible wind up next year?

[protean] 16/12/2013 14:39

The IC has these down as "clearly undervalued" and has a buy rating.



Breaking to a new high and price looks set to go higher from here.

[badtime] 16/12/2013 14:33

Well done to those who topped up on that dip

[tyranosaurus] 13/12/2013 09:48

I am pleased with the 5m share buyback.They probably didn`t have enough spare money to buy them all !!

Sniper have acquired more but I`m not sure if they will be able to vote on the wind up as they appear to be a connected party.

This buyback must have increases the net asset value per share by a few pence.

[bigmike100] 13/12/2013 09:46

Stuffee many thanks much appreciated

[shavian] 13/12/2013 08:48

Wantage: mark barnett, woodford's successor, has no choice but to offload stock in his OEICs; as there has been an outflow of over £2bn to date since the announcement of Neil's departure. MPO will have been a very small part of this process, go easy on Mark Barnett, he is no idiot, having worked at Neil's elbow for I believe 14 years. The idiots are the sheep who were stampeded out of the funds by irresponsible and inaccurate journalism. OEIC units are a microcosm of the portfolio, so the investments must be sold if investors sell units. Investment Trusts are different, being openended, the outflow from Neil's Edinburgh IT merely resulted in a 10% move from premium to discount. As I rate mark Barnett as highly as Neil, this was a great buying opportunity in EDIN.

Hey! Great RNS here this morning. I for one will be voting against wind up next year if the buybacks continue. What a good move by the BOD to snap up the Invesco shares at 202p

[tyranosaurus] 12/12/2013 19:16

Bought a few more at 202p this afternoon.

MPO must have bought some of these shares for cancellation.
They keep on about giving it high priority and they won`t get many chances like this to pick up a decent amount.
Looking forward to the RNS that should be issued tomorrow.

[stuffee] 12/12/2013 18:25

Bigmike

Wind Up

In small print of MPO's Prospectus published 7 years ago there is an undertaking to present a resolution to shareholders to wind up MPO by the AGM in 2014 (normally November). Until a few weeks ago I don't think any broker or press commentator understood this. (I did mention it on this Board in January .... and loaded up).

The directors did confirm this in the note to accounts published a few weeks ago:

"At the Annual General Meeting of the Company to be held in November 2014, a special resolution will be proposed that the Company ceases to continue as constituted. For the special resolution to be passed a 75% majority in favour is required. If the resolution is not passed, a similar resolution is required to be proposed at every fifth Annual General Meeting thereafter. If the resolution is passed, the Directors are required to formulate proposals to be put to the Shareholders to reorganise, unitise, reconstruct or wind up the Company. The outcome of the continuation vote is an uncertain future event which represents a material uncertainty which may cast a significant doubt as to the likelihood of the Company continuing as a going concern."

If the resolution is passed, I guess the portfolio will be liquidated (MPO has been gradually selling assets over last 2 years possibly in anticipation) and the bulk of cash distributed to shareholders by say mid 2015.

I suggest assets could be over 300p within 18 months; (258p at Sept 2013, add 13p surplus on contracted sale of Zhuhai to be completed in Feb 2014, say 30p+ surplus on Senado development, other developments and sales at Fountainside, continuing Macao growth etc).

I don't think many understand this even now! Don't think Company's brokers mentioned it today when arranging the placing. Otherwise why would shares trade at 202p when possibility of 300p+ in 18 months. Of course shareholders might vote against, if they felt more value elsewhere.

With many shares available today at 202.5p, from the ex Woodford Invesco placing, I therefore feel one can correctly describe this as "good opportunity"!