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56.5¢ united overseas australia limited

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

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Jausty1919

580 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 56.5¢		Change 0.005(0.89%)		Mkt cap ! $187.9M

Open	High	Low	Value	Volume
56.5¢	56.5¢	56.5¢	$1.133K	2.005K

Buyers (Bids)

No.	Vol.	Price($)
1	34611	55.0¢

Sellers (Offers)

Price($)	Vol.	No.
57.0¢	41484	2

View Market Depth

No.	Vol.	Price($)
1	34611	0.550
1	25000	0.530
1	38000	0.520
2	21000	0.510
1	20240	0.495

Price($)	Vol.	No.
0.570	41484	2
0.575	86504	1
0.580	7000	1
0.585	6849	1
0.590	7979	1

Last trade - 12.46pm 07/06/2024 (20 minute delay)

UOS (ASX) Chart