MOT's current 6% premium to NTA is a bit perplexing. It could simply be a supply and demand situation. True, many monthly income trusts no longer trade at a discount to NTA and many trade at a slight premium. For example, MOT's comparable (though less risky) fund MXT is trading on a 1.7% premium to NTA. Ironically, MXT offers a better risk adjusted return currently. MXT is currently yielding (total earnings) 9.4% whereas MOT is yielding 10.4%: those values are on NTA. Based on MOT's share price ($2.28), the current earnings yield is 9.76%. So, there's relatively little difference in the current return profile, even though MXT is a materially less risky investment, as it holds around 50% investment grade/cash assets, whereas MOT is essentially entirely non-investment grade assets.
Final point: MOT currently holds 18% equity/equity-like assets. Might there be soon to be accounted capital gains on those assets that the public doesn't know about yet? That happened a couple of years ago; but you could see the NTA increasing rapidly over a couple of weeks when that occurred.
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Last
$2.21 |
Change
0.000(0.00%) |
Mkt cap ! $732.1M |
Open | High | Low | Value | Volume |
$2.22 | $2.22 | $2.21 | $1.509M | 681.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 38876 | $2.21 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.22 | 194091 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 38876 | 2.210 |
21 | 354546 | 2.200 |
12 | 212032 | 2.190 |
4 | 34959 | 2.180 |
3 | 9608 | 2.170 |
Price($) | Vol. | No. |
---|---|---|
2.220 | 194091 | 9 |
2.230 | 335885 | 8 |
2.240 | 235608 | 7 |
2.250 | 37369 | 3 |
2.260 | 78033 | 4 |
Last trade - 16.10pm 21/06/2024 (20 minute delay) ? |
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