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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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