and for those who thinks there will be an easy 30c left for...

and for those who thinks there will be an easy 30c left for equity holders in the event of liquidation, i tell you this...


1. shareholders never receive anything in liquidation, NEVER EVER EVER

2. the value of valad's fund management business will be destroyed overnight. isn't this what valad was so eager to pay mccabe $2bn for? so called "goodwill"?

3. take a look at valad's balance sheet. yes the "NTA" is 51c, but how much of this is actual property, bricks and mortar, tangible "NTA"?

they have $1.4 BILLION of debt

but they only own $1.2bn of property assets.

so where is the rest of the value? oh yeah, its split between goodwill, fund co-investments, and development assets which are all total write-offs in the event of liquidation.

so really the picture is not as rosy as it seems, the company really only has $1.2bn of tangible property assets against a whopping $1.4bn of debt.

you see guys, the reason why mdt is soaring, is because mdt only invests in tangible property, and its NTA is entirely made up of physical property. valad is a so called "value-add" property developer, whose business model does not work in the post GFC world, and that's why she is a dog.