Hi Adam,Just wondering if you still holding this...

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zaidi675

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26/03/20

04:18

Post #: 43702001
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Originally posted by madamswer: ↑

I have to admit to being a bit unimpressed by this deal.
The $1.7m starting lease payments reflect an 8.5% cap rate on the $20m consideration.

A sale figure between $25m and $28m was my initial expectation when the idea was first announced earlier this year.

I guess the relatively muted price they received reflects the fact that there weren't too many natural buyers of this particular property (where I sense the nature of the buildings and structures do not provide much in the way of flexibility for different tenancy arrangements, outside of MCE).

Still, the deal provides much-needed funds to invest in working capital when and if the demand for MCE's products and services recover.

But, as stated before, I don't want to be holding the baby when the next downturn eventuates.

Because this company can't even turn a profit at the bottom of the current cycle, at a time when it is its own landlord. So I shudder to think what the financials will look like when the business has to absorb an additional rental impost as well.

.

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Hi Adam,

Just wondering if you still holding this one?
Cheers,
Tabish

MCE Price at posting: 20.0¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 29.0¢		Change -0.005(1.69%)		Mkt cap ! $64.90M

Open	High	Low	Value	Volume
29.5¢	29.5¢	29.0¢	$40.49K	139.1K

Buyers (Bids)

No.	Vol.	Price($)
1	49000	28.5¢

Sellers (Offers)

Price($)	Vol.	No.
29.0¢	29528	2

View Market Depth

No.	Vol.	Price($)
1	49000	0.285
2	20157	0.280
2	132500	0.270
2	10800	0.260
2	23608	0.255

Price($)	Vol.	No.
0.290	29528	2
0.295	15000	1
0.300	177114	1
0.310	15000	1
0.320	10000	1

Last trade - 15.18pm 04/08/2025 (20 minute delay)

MCE (ASX) Chart

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