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Share Name Share Symbol Market Type Share ISIN Share Description
Mckay Securities Plc LSE:MCKS London Ordinary Share GB0005522007 ORD 20P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -20.00 -10.53% 170.00 167.00 170.00 183.00 171.00 182.50 63,819 16:35:18
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 25.3 13.2 14.0 12.1 159

Mckay Securities Share Discussion Threads

Showing 1326 to 1349 of 1475 messages
Chat Pages: 59  58  57  56  55  54  53  52  51  50  49  48  Older
DateSubjectAuthorDiscuss
11/10/2013
21:59
Lord Gnome sold 20/- at 177 got 160/ left in isa on 182 offer in 20/- and will sell into 5p rises as think we are worth 200p so that way i will get a 195ish avge
patviera
11/10/2013
11:23
Looks like you've got your price patviera. I'll hold for a while or two yet. That chart is starting to look very horny.
lord gnome
09/10/2013
21:47
cos i bought at 120p cos the nav is 220p rates arent going up for a while so we still got derivative loss never wrong to take a profit sell 20pct at 175 and on 5p rises? got 180/- so will have to sell on blue,,,easier that way thoughts?
patviera
09/10/2013
21:41
tempted to sell at 175 any views?
patviera
09/10/2013
21:38
chart breakthrough pending ?
coolen
09/10/2013
11:23
Another large purchase just gone through 57,880 at £1.7185, likewise not me unfortunately !
yupawiese2010
05/9/2013
14:52
Looking strong today and someone has just paid 159 for a mere 94800 shares; not me unfortunately!
janeann
18/7/2013
08:50
Yes, I liked that bit. Normally I'd ignore the M2M because it won't materialise, but the counterparties do have a couple of calls which could force M2M - hence this is a real potential saving. If no call, or no penalty then very significant upside!!
nil desperandum
18/7/2013
08:37
Bit of "a steady as she goes" trading statement with some minor lease renewals, a small acquisition at 11.1% initial yield and a marginal deterioration in voids but the best was saved to last: an improvement of 16p in the net tangible asset value [from 157 to 173pps I make it]
jimbo3352
31/5/2013
14:40
Looks like it wants to move higher irrespective of the issues above....
ivancampo
30/5/2013
17:34
PCTN and SREI took the funding from the insurance companies but they had to pay out to close the swaps. Not sure MCKS will be in a position to do so. These swaps currently have 20 years and 25 years to go. Rates will likely be higher in 3 years but even then you are looking at circa £25m to close them out. That crystalises the losses on the swaps and bring NAV down sharply. Suddenly the discount doesn't look that attractive.
horndean eagle
30/5/2013
16:08
Lord Gnome - Can you give examples of companies financing at lower margin rates than 300bp? MCKS will have to pay margin rates of this order on top of the swaps they are tied in to. It won't be 300bp above base rate or gilt yields. An insurance company may lend all in at circa 5% for 10 years. In the meantime MCKS will have to pay the counterparty they have the swap with the difference between that rate and whatever the base rate is at the time. Its why they highlighted the problem in the statement.
horndean eagle
30/5/2013
15:15
I don't agree HD. Other propcos have been refinancing at much lower rates than previously. They have been locking in current low rates. Deals have been struck with insurance companies who have been only too willing to advance money secured against property at 50% gearing. Take a look at SREI and PCTN.
lord gnome
30/5/2013
14:24
I would be very wary of MCKS medium term. That swap liability is a huge millstone around their neck. The real problems will come about when the loans come up for renewal. It was highlighted in the results:- The main financial risks to the Group are compliance with financial covenants on bank borrowing, major tenant default, lack of liquidity, interest rate hedging instruments and future interest rate costs on bank borrowings. The first of the Group's four standalone facilities, which are all on pre-recession low margins, is not due for renewal until February 2016. The future interest cost applicable to new facilities will be dependent on rates available at the time, but are likely to be higher. I imagine the margin they are paying above swaps is circa 100bp. If they were going for debt now the banks are likely to charge 300bp. Add that to the swaps they are tied in to and they will be facing borrowing charges nearing 8%.
horndean eagle
30/5/2013
07:56
From yesterday, fwiw.....IC VIEWWith a 5.6 per cent dividend yield, McKay's shares are useful for income. They would benefit hugely from a recovery in the south-east office market, which is increasingly attracting investors priced out of its more global London counterpart. Buy.Last IC view: Buy, 137p, 20 Nov 2012
ivancampo
30/5/2013
07:32
Clarity would be helpful but I believe that the underlying risk of a big swap cost is fairly minimal. If the MCKS credit quality deteriorated the risk would increase but I think that unlikely in the short term. ND is right, a probable bonus over time. Sit in SIPP and take the dividends until then.
flying pig
30/5/2013
07:07
Well, except that the basic NAV we're buying at takes into account the MTM swaps hit ... so if any of it is avoided then it's a big time bonus!
nil desperandum
29/5/2013
22:08
Agree with all that has been said today after a strong set of results. As a non-holder who is impressed with the business and interested in investing it is crazy that they make no effort to clarify thereby making it impossible to invest unless you are happy to buy at NAV (or are prepared to bet on interest rates being substantially higher come 2016).
scburbs
29/5/2013
20:55
Thanks Jimbo - they would really help the share price if they explained this in plain english. I think my view is that there is unlikely to be any early close out. In which case all is fine and these are a buy when the opportunity arises. If there is a chance that the bank could demand cash it definitely makes you think twice about adding to your holding. Surely they could make it clearer!
topvest
29/5/2013
17:43
Wouldn't be surprised to see a few of the trades today show up as Director buys....
ivancampo
29/5/2013
15:34
The link below gives some background info, see col 3 for credit breaks. I have edited my post 679 to try to clarify why I think the break cost would be much less than £50m http://www.argentuspr.com/pdf/012EGA_111210_040.pdf
jimbo3352
29/5/2013
14:40
I second that. Someone should direct that exact question to one of the non-execs at the next AGM to ensure that they too fully understand.
coolen
29/5/2013
12:46
Yes, very good results. Can anyone clarify exactly what this means as it seems clear as mud: Interest rate risk The Group adopts a policy of ensuring that its exposure to interest rate fluctuations is mitigated by the use of financial instruments. Participating swaps and interest rate swaps have been entered into to achieve this purpose. The swaps mature over the next 26 years and have swap rates ranging from 4.31% to 5.17%. Provision is made within the terms of the financial instruments for the counterparty bank to terminate the instruments by invoking credit breaks, the first of which is in 2016. If such a credit break were exercised, a payment would be made between the parties dependent on market value at that time. The instruments also provide the counterparty bank with additional break options from 2014. Should these breaks be exercised, there would be no payment liability on the Group. The Group does not hold or issue derivative financial instruments for trading purposes. Could they be made to pay circa £50m or not in 2016?
topvest
29/5/2013
10:06
An encouraging set of results. Yes the fair value adjustment of the swap both in the company and its associate has almost wiped out the profit but the investment property values have been resilient, the void rate is down markedly, the ltv has improved and epra net asset value has increased. As scburbs has pointed out the accumulated fair value of the swap liability wipes out the surplus of epra net asset value over the share price. Personally I take a more optimistic view: interest rates have another 3 years to rise before the counterparty can exercise a break with payment in 2016. Break clauses are usually inserted to cover the risk of deterioration in credit risk which does not apply here. Even if the counterparty were to collapse the swap, the liability would I believe normally be calculated by reference to the fixed interest rate available to MCKS in 2016. In other words,even if MCKS suffered a break cost they should able to lock into a new lower fixed rate in 2016 and, when interest rates rise, enjoy the benefit.
jimbo3352
Chat Pages: 59  58  57  56  55  54  53  52  51  50  49  48  Older
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