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I don't think there is much interest in this
share from the lack of discussion. An extract from Appendix 1 from the
investment statement from TTP dated 26th April shows the prem/Disc to NTA
as
Trans Tasman
(68.6%)
AMP NZ Office Trust
(4.3%)
Kiwi Income Property
Trust (13.9%)
Property for industry
12.8%
Colonial First State Prop Trust
4.0%
Capital Properties NZ
(2.4%)
Calan Healthcare Properties Trust
(27.3%)
National Properties trust
(16.3%)
Average as
(6.2%)
The interesting thing is the dept/TTA for TTP
is 45.5% where the worse is Capital properties at 66.5%. and yet Cap
Prop is trading at a premium of 12.8%. The reason the share price is so
low is that TTP has suspended dividends due to the paper losses
of writing down the portfolio value. I for one am not prepared to
give it to SEA. Have you noticed they have not been complaining about the
lack of dividend and yet they own over 50%.
I have voted NO to the bond conversion and NO
to the re-election of the directors.
Valuations will stop going down as the cost
of new buildings rise. Dividends will be introduced and the share price
will rise. The report said from memory 3 years. I think this is
shyt.
Disclosure Hold TTP
Andrew
----- Original Message -----
Sent: Wednesday, May 16, 2001 8:19
PM
Subject: [sharechat] TTP -
Opportunity
IMO you should vote for the proposal.
Current price of 23c may be way below the asset valuation of 40-70c
depending on which valaution methods are used, however one cannot
dispute the fact that TTP have been trading up until the
proposal around 16c and not paying dividends, in a company that has
a perceived tarnished image and in an unfashionable sector.
At the current price of 23c , take the bond which has a face value of
10%, in a climate of falling interest rates that is fairly healthy
yield. If the market values the bonds at the face value of 35c -
10% yield (assuming the shareholders accept the proposal) then one could
expect an immediate gain around 12c (35c-23c) a gain of
52.2%!
If the market does not value the bonds in line with current interest
rates, then you can take a long term view and "only" take an average
gain of 20.4% pa on your fixed interest investment for
the next 10 years! (12c/23c = 52.2%/10yrs = 5.2% pa (capital
gain) plus 35c/23c x 10% = 15.2% (interest yield) - you
would need to work hard to beat that!
The revenue stream and balance sheet of TTP can handle this proposal
without a problem.
The scheme, basically unlocks all the value that exists (like in a
number of listed NZSE companies (ala Rubcom,GPG to name but few) and
shares the value between ordinary shareholders and SEA. If SEA do
alright out of it than good luck to them. To those that argue that the
offer is unfair because the property cycle is at a low, then where are
they out there buying property. For those long term investors who are
sitting on large book losses from years ago , get over the fact that you
lost money - what happens going forward is most relevant
Anyone else got an opinion?
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