I wouldn't touch HVN. It is a real estate rent-seeking play that will come undone on sales-to-rent.
You are correct to say rolling off the dud stores turns the MYR lease portfolio into an asset.
MYR needs plentiful working capital to give Garry Hounsell & team the flexibility to out-manoeuvre other retailers.
I think it pretty well has that flexibility. The rights issue went to WC - it just takes a couple of years to manoeuvre suppliers to better terms, give buyers the confidence to act boldly and the pricers a quick and steady hand with the red pencil. This is how retail creates Wow!
I would prefer to see MYR announce a dividend - it shows poise and duration. I assume it will announce a reasonable though modest profit and the div be <50% of NPAT.
It may take a decade to regain the freeholds. Meanwhile, MYR needs to shrug and pretend nil attraction until the banks offer them around as mortgagee sales. Believe me, that juncture will come to pass.
Ash
MYR Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
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