Macquarie Intl   

MIIF

Thanks alot to SmartBear and Farmer for their informative postings.

Looks like i hve to go back to reading up books after 40+ years since last sch exams

 

The earliest debt mature is still 2-3 years from now and I read that the mgmt is comfortable with it currently. Gearing for most of its holdings are > 60-70 % that average to in between overall. MIIF is not an "empty shell" unlike some penny stocks right now. It actually hold many infrastuctures and properties ww with most of its holding's value appreciate against the acquisition price. Unless there's a sharp depreciation of these holding's value couple with severe financial turmoil ww, lets stay vigilant and hope for the best. Cheers!

 

it all boils down to the capital structure the managers of macquaire is comfortable with i guess... low debt does not always mean good.

 

Thanks to "shplayer" for shedding some light on where the $ comes from to pay the div.

But am just wondering from  a layman's point of view, instead of paying out such  high div yield (annual basis is abt 10%) should not the company be using the excess cash to pay back to reduce debts  AND preserving some cash to  cover the depreciation losses; as  eventually the depreciated equipment, plants, machinery  etc.. need to be replaced and lots of money would be needed? Or are they going to keep borrowing more and more?

 

 

 

 

If the credit market crashes like tha mortgage market did, MIIF will crash as it is true that dividends are paid part using debt like Smart bear puts it.

Add to that, MIIF does finance it's acquistion using debts, so in a way, this co.fund is heavily geared. In a way, $ in this counter, can be considered "risky" if you look at it, depending on how you look at it.

What it is currently doing now, is completely legal and not forgetting the aim of this fund set up is to maximise shareholder's returns, OR SO THEY SAY =)

 

eh i not very sure about MIIF, but i think i read somewhere that Macquaire has a habit of paying shareholders using debt. I'm not very sure if i read correctly or not...

 

Think to put it simply, MIIF pays its dividents based on cash flow....and not P&L (where you derive eps).

In cash flow, only actual changes in cash positions are taken into consideration. e.g depreciation....which has no cash impact is negated. In P&L, non cash items such as depreciation, revaluation/devaluation of assets are accounted for.

Hope this clarifies. 

ShareJunky      ( Date: 15-Aug-2008 09:16) Posted: Hmmm..... very strange...these questions to be clarified :-  How could the company  pay out dividends more than earnings in the last quarter ?  Where is the money coming from ? Is this a prudent practice? For  how long can this practice (paying out div more than earnings) be continued? How will this affect the long term value of each  share we own? SmartBear      ( Date: 15-Aug-2008 08:33) Posted: i think macquaire has a history of doing that... and they're still doing well...

 

Hmmm..... very strange...these questions to be clarified :- 

How could the company  pay out dividends more than earnings in the last quarter ? 

Where is the money coming from ?

Is this a prudent practice?

For  how long can this practice (paying out div more than earnings) be continued?

How will this affect the long term value of each  share we own?

SmartBear      ( Date: 15-Aug-2008 08:33) Posted: i think macquaire has a history of doing that... and they're still doing well...

 

i think macquaire has a history of doing that... and they're still doing well...

 

http://www.bear-analysis.blogspot.com/

 

reading into their annual report, u'll notice that they can do that. it's legal. Just have to go deeper.

Not forgetting the arrears payment from their new acquisitions, perhaps HNE aside.

've posted my views at www.bear-analysis.blogspot.com

If you're interested.

ShareJunky      ( Date: 14-Aug-2008 14:02) Posted: I am quite blurred - how come MIIF can pay div of 4.25 cents when earnings per share is very low at only just 1.96 cents in the last Q? Where's the extra cash of 2.29 cents coming from to pay for div of 4.25 cents? Appreciate comments from someone able to find the answer (if any) in the last Q results report. Thanks.

 

I am quite blurred - how come MIIF can pay div of 4.25 cents when earnings per share is very low at only just 1.96 cents in the last Q?

Where's the extra cash of 2.29 cents coming from to pay for div of 4.25 cents?

Appreciate comments from someone able to find the answer (if any) in the last Q results report. Thanks.

 

 

www.bear-analysis.blogspot.com

 

 

 

Take a look at their financials and I think it'll tell u your answer.

 

 

Diluted Earnings per share in Quarter ended June 2008 is down to 1.96 cents; compared to 11.36 cents for the corresponding Quarter ended June 2007. (See MIIFSGXReport30June2008FINAL released this morning available from SGX website) I'm very blur in accounts - but am just wondering aloud whether the just declared dividend of 4.25 cents is sustainable in future (sorry if I'm mistaken) Any financial analysts / experts to shed some light?

 

But the share always drop after dividend payments leh. Inadditional to the SDS share scheme, it dilute the share.

 

2Q08 results within expectation! Interim divds = 4.25cts payable on 15 Oct.

2nd half 08 outlook still positive with contributions coming from HNE & TBC their newly acquired asian unit. Looking forward for another good results and divds distribution of at least 4.3-4.5cts. Cheers!

 

 

Ok! The verdict for 2Q will be out before market reopen tomorrow morning.....should be happy if can deliver 4cts at least for divds.

 

I pridict ard 4.3-4.5 cents per share and definetely nobody taking up their share option liao

 

MIIF will announce its 2Q08 results with dividends before market reopen on 13 Aug. I predict the interim divds will be at least 4cts, thus, lend some weight to its current share price.