I am relatively new in share investment, but have been holding AJA shares for almost a year now, and bought some more today.
The announced report looks pretty good to me, not excellent, but still good.
I agree mostly with Copper, except for the capital raising. I guess the raised capital will be used to lower the debt, however, given the interest on the debt is only 1.9%, I am definitely not happy if the return of my capital is 1.9%.
With 3.5X interest cover, the loans (at whatever LVR) should be quite secure (I don't have 3.5X ICR on my home mortgage!). There is only one loan is tied to a LVR covenant, and it's non-recourse. In a worst case scenario, AJA will have to sell the property to repay the loan, and assuming the proceeding is only enough to cover the loan (which means a 22% discount), we will loose some NTA (say 25%), the remaining NTA will still be a lot more than the current share price.
With 20% yield, over 50% discount on NTA, and a bottoming out Japan economy, I just don't see why this is not a screaming bargain. Am I missing anything?
AJA Price at posting:
$3.50 Sentiment: Buy Disclosure: Held
