Macau Property Opportuni... Share Discussion Threads

[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"!

[bigmike100] 12/12/2013 16:29

stuffee please explain "good opportunity with wind up resolution due in 12 months."

[primarch1] 12/12/2013 15:37

Now the sellers cleared out this should get moving hopefully

[wantage] 12/12/2013 15:20

just bought 10K.Maybe Macau will do some buying back at this level.

[wantage] 12/12/2013 15:18

good point - a lot of woodford's stocks under pressure.Why sell a steady eddie like this? Who's the new manager? I'll email the idiot.

[stuffee] 12/12/2013 14:13

Wantage

Invesco have just placed their holding, formerly 20m shares, at 202.5p. This follows their restructuring selling many other large holdings, post Neil Woodford.

I've trousered a few more at this level - good opportunity with wind up resolution due in 12 months.

[wantage] 12/12/2013 12:48

Enormous vol - who sold,who bought?

[bigmike100] 02/12/2013 10:34

Partly answered my own question but would appreciate any comments. It would appear that Invesco have been selling at least for the last year. As we know the share price has done well during that time.

[bigmike100] 02/12/2013 09:44

Second recent sell by invesco any implications/thoughts regarding that?

[jbarcroftr] 29/11/2013 17:27

Sorry misread the RNS
Nevertheless it a big vote of confidence to see them buying at 210p

[zangdook] 29/11/2013 17:05

jbarcroftr

It wasn't a share buyback by the company, so there won't be less shares in issue. Is that what you were suggesting? Apologies if I misread your post.

[jbarcroftr] 29/11/2013 13:08

As they are buying below the asset value it is very good news
Less shares = increase in asset value
+ purchase puts a floor under share price
I see these performing very well over the next 12 months and closing the discount to net asset value

[bigmike100] 29/11/2013 12:42

trex is this then similar to a director buy?

[tyranosaurus] 29/11/2013 09:12

I see Sniper have bought almost 2m shares.
MPO desperately want to buy back shares so this appears to be Sniper not acting in the best interests of MPO ?
Seems odd to me.

[bigmike100] 20/11/2013 12:03

I noticed today another big thumbs up for MPO from ST in the Investors Chronicle from last Friday.