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17-10-2011, 07:32 AM
(17-10-2011, 12:57 AM)Qiaofeng Wrote: Nick,
Let's see where we differ.
1) Share buybacks-
Does ( My view) or Do not (Ur view) affect share price of MIIF and hence the incentive fees.
2) MIIF biz model/MIMAL role-
Ur view that MIIF was an Asset trader previously but is now an Asset owner focusing on managing the assets.
My view, despite the management changes from Kerr to Stuart, MIIF role should be that of a funds allocator and manager i.e. looking for good assets, chiefly earning regular cashflow from these assets but not averse to making opportunistic capital gains; in the process hedging risks from debts and reducing expenses. IMHO, John Stuart did badly in the role I defined for him and I blame the incentive scheme.
3) In addition, I am concerned about Off B/S debt ( esp HNE in China) and want more info on how they are funded together with local govts (SPVs etc). U seem happy with the info put out by MIIF on amortisation.
In sum total, I would say I have a more cynical view of management whereas U are more sympathethic, thinking that the management is trying its best to increase shareholder's value under the difficult circumstances.
For weijian and others vested or vesting, I hope U are right.
For me, I had divested , moved on and was trying to share My1c Gibberish.
Having made my views heard, I will stop my posts on MIIF in this forum, henceforth.
Thks guys for the robust debate.
For (1),
i think most of us knows it DOES affect share price (in terms of putting in extra demand). But it does not increase market cap n increases fees as a result. This is the pt that Nick is trying to put out. Just do some simple maths (as i did) n it becomes very clear.
For (2),
'Opportunistic' is a very dangerous word.
Opportunists shdnt deserve the 4mil qtrly income.For (3),
Very valid concern on the B/S of ALL its assets. As nick noted again, more transparency is required.
QF,
Thanks for your alternative views. I learnt some new insights. As the value investing in China presentation by Mr. Cheah Cheng Hye mentioned, whenever we enter a transaction, we shd always look at the opposite partner's reasons..