I must confess I am a huge fan of AYT.Great rising yield of over 3% over bank bill on the $2 face value, NTA of $1.79 (DYOR). Running yield at current price of $1.32 is over 11%.
This stock has not risen much in the bull market, and yet its main business is margin lending. The AYT trust itself has no debt and is just holds high yield debt.
Given the maturing profile of the loans (in the next 2-3 years), I would say that there is a good chance of capital being returned to shareholders.
Bendigo Bank ( trust manager) tried to buy all the shares at about $1.65 ( DYOR) in Feb/March 2009 but APRA knocked them back. Its strange the manager thinks its great value, and yet the market itself does not think so?
If I did not have an overweight exposure myself to AYT myself I would not be sharing my thoughts.
AYT Price at posting:
$1.32 Sentiment: LT Buy Disclosure: Held
