I remain surprised at how little interest there is in MUE - from...

I remain surprised at how little interest there is in MUE - from both HC'ers and the media generally.

This offers a PE multiple of about 3 and a base dividend yield of about 14 percent - not including the odd special dividend that can easily double the yield.

The reason for the high yield is the risk associated with the very high gearing level. They will not be able to refinance their portfolio with an LVR covenant anywhere near the current 95%. Around 65% is more like it in the post GFC world, so they need to keep building cash and hope that valuations improve a bit before 2014.

If they do manage to get the portfolio refinanced in 2014 and valuations have improved at least a few percent from current levels then MUE should be worth at least 50c, able to pay a dividend of around 6c from free cash flows.

Then there is the Euro debt crisis. It seems most commentators expect the situation to deteriorate, but how this could affect MUE is hard to figure out.