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1.8¢ pearl gull iron limited

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petersmithlorraine

452 Posts.

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13/09/16

16:20

Post #: 19126238
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Originally posted by Wise_One ↑

Its bc the market doesn't like how aggressive an Industrial property trust is priced. I.e. The IPO yield was 7.7% (6.85c FY17 forecast distribution & IPO price of 89c).

Many thought this was far too aggressive & hence why the actual book build was also poorly received.

There are also a number of significant risks to the current FY17 forecast specifically around the quality of the properties in the portfolio (& specifically the significant cost to re-let them if they were to be vacant)

Finally, the FUM targets are also ultra aggressive. They need to attract c. 700M in additional FUM within the FY to meet their IPO targets & hence their forecast distribution & ergo their implied yield.

All-in-all this IMO will drift to a more appropriate yield of c. 10-11% to better price the risks to the portfolio & the forecasts. This would see the SP being b/w 62.5 & 68.5c

Finally, the first distributions are in Feb 2017, so the time will act against this one as a lot can 'go wrong' between now & then.

There have been some really good articles written about this IPO in the financial press specifically expressing these & other risks which explain the poor uptake in the book build.

This is one to watch for me with it becoming a buy in the low-60's as the yield approaches 11% for my SMSF...

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PLG has not performed well dropping from the issue price of 89 cents to 73 cents now. However, I see all directors bought on market - about $100k each- when the SP was in the 80's so they seem to have confidence!

PLG Price at posting: 74.0¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 1.8¢		Change 0.005(38.5%)		Mkt cap ! $3.681M

Open	High	Low	Value	Volume
1.3¢	1.8¢	1.3¢	$5.014K	359.2K

Buyers (Bids)

No.	Vol.	Price($)
1	7000	1.5¢

Sellers (Offers)

Price($)	Vol.	No.
2.0¢	100000	1

View Market Depth

No.	Vol.	Price($)
1	7000	0.015
1	29728	0.014
1	90999	0.011
1	250000	0.010
2	400099	0.009

Price($)	Vol.	No.
0.020	100000	1
0.024	80000	1
0.040	15000	1
0.041	13518	1
0.045	85000	1

Last trade - 16.10pm 27/09/2024 (20 minute delay)

PLG (ASX) Chart

strange sp, page-4

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strange sp, page-4

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