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61.5¢ united overseas australia limited

I’d say that us minority shareholders have no choice but to...

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Jausty1919

571 Posts.

217

30/08/23

14:33

Post #: 69639097
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Originally posted by Portfolio: ↑

To be fair though it was NTA of 107c the period before so its not exactly flying.
Ironically one of biggest things holding the NTA down though is constantly raising money (DRP) at 50% discount to NTA. This is kind of like a roll-up strategy in reverse (roll-up strategy being where a company issues shares at very high multiples and buys cheaper assets which constantly pushes up the EPS, book value / NTA).

So this company is adding value and making a profit but that profit is not compounding in the NTA number because the value is offset by the discount in the equity raise (DRP). Thats actually harder to get your head around than the reverse because you cant optically see the impact of compounding at the company level if that makes sense.

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I’d say that us minority shareholders have no choice but to participate in the DRP, otherwise we’d effectively be allowing our ownership to be diluted at a c. 50% discount to ‘headline’ NTA (real NTA is likely > book value, as others have pointed out).

UOS Price at posting: 55.5¢ Sentiment: None Disclosure: Held
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(20min delay)
Last 61.5¢		Change 0.010(1.65%)		Mkt cap ! $325.9M

Open	High	Low	Value	Volume
60.5¢	61.5¢	60.5¢	$140.7K	230.4K

Buyers (Bids)

No.	Vol.	Price($)
1	1901	59.0¢

Sellers (Offers)

Price($)	Vol.	No.
62.0¢	50000	1

View Market Depth

No.	Vol.	Price($)
1	1901	0.590
1	875	0.585
3	3527	0.580
1	5358	0.565
1	6800	0.560

Price($)	Vol.	No.
0.620	50000	1
0.685	8290	1
0.710	4134	1
0.000	0	0
0.000	0	0

Last trade - 16.10pm 03/05/2024 (20 minute delay)


Last 61.0¢			Change 0.010 ( 0.83 %)
Open	High		Low	Volume
60.5¢	61.0¢		60.5¢	16000
Last updated 10.57am 03/05/2024 ?

UOS (ASX) Chart