MMA currently trading at 1.105 MMC Contrarian has been a busy little investment company over this year. Anyone around interesting is discussing the developments?
Of current interest is GPG continuing to increase their position to almost 11% at the last filing. I assume their buying pressure has caused the share price increases of late. Unfortunately this buying has shrunk the discount to NTA to almost zero. Established similar companies often trade at a premium to NTA, so this does not mean an end to the short term price rises; however, it does appear the margin of safety has disappeared.
I currently hold MMA and would only consider adding more at these prices if I preferred to be fully invested in the market rather than hold cash. At this point I am comfortable holding some cash. As MMA’s policy is to deliver an increasing stream of fully franked dividends it appears very likely that an investment in MMA, even at current prices, will outperform a cash or fixed interest account. The current half yearly dividend of $0.04 is equal to a 7.24% FF return, considerably better than current interest rates.
Has there been any developments in the 10cent capital return?
Does anyone know anything about the companies MMC has recently been buying or adding? OTL, DBS, ETC, EON.
Any thoughts on why HGL Limited, HNG, is a substantial holder? From reading their website at http://www.hgl.com.au/page/about_hgl.html MMA appears to be outside their area of interest and their holding appears to be over 30% of their market capitalisation.
Cheers moreld
MMA Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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