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You are absolutely right. However, from a businessman view point, they need cash hoard to pounce on opportunities. This is especially critical for China properties where credit is extremely tight. A recent example is the issue of 3 year S$250m denominated debt by HK listed Shui On Land at 8% pa.
On Metro's debt, they are predominantly hedging financing to reduce exposure to functional currencies apart from S$. So strictly speaking they are not wrong in taking on debts.
More critically is how to convince management to return excess cash should they can't find investment opportunities over a period of time. A good time to engage management will be during AGM especially post AGM when one can catch hold of Mr Jopie Ong.
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i would rather they keep the cash..if the cash is passed to me a minority sharesholder, i see money, i will spend it away..
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02-02-2012, 10:47 AM
(This post was last modified: 02-02-2012, 10:51 AM by chaosdiablo.)
Hi, you are here aw well....
I am also invested in Metro....look like we are the buy and hold for value type...Metro and Stamfordland are in this group...
I think we should always question management such as for Metro, the issue of warrant and hence additional shares and cause a drop in NAV.....if they are doing a good job in this situation and if they are overpaid???
We should ask as much as possible during AGM, whether it is St****** or Metro....
(31-01-2012, 09:32 PM)greengiraffe Wrote: You are absolutely right. However, from a businessman view point, they need cash hoard to pounce on opportunities. This is especially critical for China properties where credit is extremely tight. A recent example is the issue of 3 year S$250m denominated debt by HK listed Shui On Land at 8% pa.
On Metro's debt, they are predominantly hedging financing to reduce exposure to functional currencies apart from S$. So strictly speaking they are not wrong in taking on debts.
More critically is how to convince management to return excess cash should they can't find investment opportunities over a period of time. A good time to engage management will be during AGM especially post AGM when one can catch hold of Mr Jopie Ong.
I see partnership with Tesco in various city another gem soon
(31-01-2012, 09:06 PM)greengiraffe Wrote: You are not wrong there. Metro always have an eye for the right price. However, the right price is also driven by factors beyond Metro's control.
So far, Metro appears to be a value investor. Not that they are always correct since the Japanese venture so far like other Japanese investors has yet to seen the long awaited turnaround.
On their older "flagship" properties, it remains their intention to keep it. During the last AGM, mgt highlighted that there are options to extend their leases though it remains premature to speculate how they will be able to do it since lease rulings in China remain fluid. Nevertheless they are confident that they would have recovered their investments in these properties many times over when the lease extensions are up for fresh negotiations.
As to unlocking the value at Metro, it appears the controlling Ong family remains skeptical of embracing modern portfolio management theories. Until such time that they "see broken" or receive a price that they cannot refuse, the value will remain permanent and shareholders wealth will remain tie to the volatile daily fluctuations.
No reits, securitisation or possible returning of huge cash hoard is expected with the exception of special dividends tied to lumpy asset sales. Management while mindful of enhancing shareholders' wealth have yet to formulate any strategies let alone executing a simple accretive open mkt share-buy policies to enhance book value even further.
Such is the wrong term view that one should adopt should one consider parking money in Metro since dividend policies appear to be tied to miserable cashflow generated presently.
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As a shareholder, you have every right to ask questions. Whether mgt give you an answer that you are looking for is a different thing.
Take it easy, shares are liquid so if mgt view is different from yours, simply sell it.
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Always good to post questions at AGM and questions if they are doing a good job or if they pay themselves too well.......don't raise them, they will think everything is fine....
(02-02-2012, 12:22 PM)greengiraffe Wrote: As a shareholder, you have every right to ask questions. Whether mgt give you an answer that you are looking for is a different thing.
Take it easy, shares are liquid so if mgt view is different from yours, simply sell it.
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If you have attended Metro AGM long enough, you will realise that Mr Jopie Ong never answer questions. All these years, the questions about his bonuses, dividend policies and how to enhance shareholders' wealth have always been noted, thought about and things still remain in progress.
If you don't believe, you can remain as a shareholder and attend a few of their AGMs and see it for yourself. The Ong family are firmly in control of the company and hence the way the company is being run.
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Well, I think so but as long as all attend the same AGM and ask about the same question, then it will be useful.....
But I had to agree that some rules had to be enforced by SGX so that minority shareholders are protected........
(03-02-2012, 11:36 AM)greengiraffe Wrote: If you have attended Metro AGM long enough, you will realise that Mr Jopie Ong never answer questions. All these years, the questions about his bonuses, dividend policies and how to enhance shareholders' wealth have always been noted, thought about and things still remain in progress.
If you don't believe, you can remain as a shareholder and attend a few of their AGMs and see it for yourself. The Ong family are firmly in control of the company and hence the way the company is being run.
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Although Jopie Ong id'nt answer the questions but most questions will be answered by Gerald Ong and David Lee. They always find reasons to justify the obscence salary of JO.
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Are the reasons they give valid??? I think the pay is eating quite a lot into the profit if Iam not wrong........
(03-02-2012, 03:36 PM)Stocker Wrote: Although Jopie Ong id'nt answer the questions but most questions will be answered by Gerald Ong and David Lee. They always find reasons to justify the obscence salary of JO.
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Anyone know the eamil to write to Metro???
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