Metro Holdings

[chaosdiablo]

There was a thought raised by Gerald that their 40% govt partner is already super cash-rich now & in no shortage of cash at the expiry of the lease. So why would they still need a partner (like metro) at that time and he said something on relationship management. maybe some 'x' factor has to be present?

They needed Metro in the 80s but not now and future, now should be the other way round.
Sin- Sino SZ Industrial park tells all. They cornered S'pore from 65% to 35 % partner.

Ok, seems like cannot keep for long......will sell if got chance.....but still want to see how they use all the cash that they had....

[Stocker]

What can shareholders look forward to after this 6 cents dividend xd tomorrow ?

[chaosdiablo]

What can shareholders look forward to after this 6 cents dividend xd tomorrow ?

special dividend in dec???

Sale of other malls???

[greengiraffe]

I don't want to be a wet blanket - I think there is nothing that shareholders can look forward to.

Pulling off the sale of Metro City Beijing is already a miracle. Given the current climate in China, it is difficult to see how Metro can find sorchai to buy them off any assets at the price that they are looking for.

Apart from being cash rich, their unwillingness to share will continue sustain a huge discount to book value. This is on top of valuations on their assets that is running low on leases.

If they are willing to unlock shareholders' wealth, they would have easily raise their regular dividend amount and declared a bigger special dividends.

I suppose there are good reasons why Metro has always been trading at generous discount to book value despite their steadily improving balance sheet especially in the last few years.

Be prepared to face 2 cents dividends in the absence of asset sales.

What can shareholders look forward to after this 6 cents dividend xd tomorrow ?

[chaosdiablo]

Are you saying that the management is unable to unlock the value of Metro and that is the reason why the share price is trading at such a huge discount to NAV?

I don't want to be a wet blanket - I think there is nothing that shareholders can look forward to.

Pulling off the sale of Metro City Beijing is already a miracle. Given the current climate in China, it is difficult to see how Metro can find sorchai to buy them off any assets at the price that they are looking for.

Apart from being cash rich, their unwillingness to share will continue sustain a huge discount to book value. This is on top of valuations on their assets that is running low on leases.

If they are willing to unlock shareholders' wealth, they would have easily raise their regular dividend amount and declared a bigger special dividends.

I suppose there are good reasons why Metro has always been trading at generous discount to book value despite their steadily improving balance sheet especially in the last few years.

Be prepared to face 2 cents dividends in the absence of asset sales.

What can shareholders look forward to after this 6 cents dividend xd tomorrow ?

[propertyinvestor]

Are you saying that the management is unable to unlock the value of Metro and that is the reason why the share price is trading at such a huge discount to NAV?

I don't want to be a wet blanket - I think there is nothing that shareholders can look forward to.

Pulling off the sale of Metro City Beijing is already a miracle. Given the current climate in China, it is difficult to see how Metro can find sorchai to buy them off any assets at the price that they are looking for.

Apart from being cash rich, their unwillingness to share will continue sustain a huge discount to book value. This is on top of valuations on their assets that is running low on leases.

If they are willing to unlock shareholders' wealth, they would have easily raise their regular dividend amount and declared a bigger special dividends.

I suppose there are good reasons why Metro has always been trading at generous discount to book value despite their steadily improving balance sheet especially in the last few years.

Be prepared to face 2 cents dividends in the absence of asset sales.

What can shareholders look forward to after this 6 cents dividend xd tomorrow ?

Yes, thats what Ive been trying to tell you for the past few mths.

Lousy management only know how to sit there collect fat salary and pay himself well.

[greengiraffe]

Are you saying that the management is unable to unlock the value of Metro and that is the reason why the share price is trading at such a huge discount to NAV?

I don't want to be a wet blanket - I think there is nothing that shareholders can look forward to.

Pulling off the sale of Metro City Beijing is already a miracle. Given the current climate in China, it is difficult to see how Metro can find sorchai to buy them off any assets at the price that they are looking for.

Apart from being cash rich, their unwillingness to share will continue sustain a huge discount to book value. This is on top of valuations on their assets that is running low on leases.

If they are willing to unlock shareholders' wealth, they would have easily raise their regular dividend amount and declared a bigger special dividends.

I suppose there are good reasons why Metro has always been trading at generous discount to book value despite their steadily improving balance sheet especially in the last few years.

Be prepared to face 2 cents dividends in the absence of asset sales.

What can shareholders look forward to after this 6 cents dividend xd tomorrow ?

Yes, thats what Ive been trying to tell you for the past few mths.

Lousy management only know how to sit there collect fat salary and pay himself well.

To be fair, we must give whoever that managed to get deals done their due credit.

Performance bonuses is a matter of investors' perception.

I personally think that they have rationale to hoard cash - given that they are aware of the high risks that they are undertaking in their businesses.

They have pull off several lucrative deals in China historically. Whether if they can pull off further rambo deals will be subjected to mkt conditions. Given the deceleration of global economic growth and China's awareness of asset bubbles and its impact, one has to be conservative in their views on Metro.

If you look at operating cashflow this yr and mgt's prudence in paying dividends based on operating cashflow - there is good rationale to expect 2 cents regular dividends.

Hence, the ability to realise book value must take into consideration of:

i) willingless to share wealth - the latest financial year is probably the best year that Metro had in recent history but there is no commitment for higher regular payout and even higher special dividends;
ii) what is the realisable value of China assets especially those with short leases

[Stocker]

Metros' properties in China are depreciating assets, like ships.

[chaosdiablo]

seems like tomorrow going to fall a lot......

So, you guys are selling???

[GFG]

seems like tomorrow going to fall a lot......

So, you guys are selling???

Nope. In fact I m looking to add to my 90 lots if it goes below 0.73
The issue is everyone seems to b focussing on the dividends.
If they can deploy their cash well, I wouldn't mind a 2 cent dividend
And I actually agree with mangt hoarding cash now. When there are deals, cash is king. The question then is whether they can execute more deals with their cash. None of us here can say that for sure, but they do have a good track record so far.
Admittedly, the negatives include jopie Ong high remuneration and the falling tenancy of their tesco lifespace malls. I dont see the leasehold malls asa substantial negative right now. at the right price, I still see good value emerging. Bought my 90 lots at 0.64-0.645