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06-02-2017 10:46 AM
So - there you go. Given this years income - they should represent about R1,50 of investable value per ordinary share after seeing out the year. They should have over R2 Billion free cash to invest in insurance contracts. lovely. Dumped mine at 53c and took back a million of them at 42c. If I am feeling strong - I'll take another million.This could be an interesting proposition.
06-02-2017 12:04 PM
I think it will turn once the selling pressure is over, my feeling is with finacial year end around the corner a lot are off loading to claim the capital loss, thats why I also took a chunk now but will wait to off load my holding (old ABL) in the new financial year.
06-02-2017 01:33 PM
Could be - but sometimes you just need to take the plunge or risk being relegated to watching from the sidelines. If it drops - I will hopefully have the courage to take more.
It sounds like you have followed a similar "scaled" approach.
06-02-2017 02:16 PM
don't gorget the R1.1billion in pref share libaility
06-02-2017 02:43 PM
I have not. To all intenets and purposes - you may as well forget about them.
They have pratically no rights. They are non-redeemable, non participating, non-cumulative. They are essentially an interest free loan.
They do not benefit from capital growth and have no impact on the capital metrics until a payout is made..
As long as no dividend is declared (in which case their scrip obligation for that year must be settled first) - they are non-players.
07-02-2017 11:26 AM
If Steyn CapItal management - who as I recall are forensic acocuntants have bought into their debt then that is a hello this makes for a tick in at least one of the boxes.
07-02-2017 11:37 AM
the refs are interesting coz you getting cash at serious discount, but you may never see that discout close and lots of ways to lock mess with pref holders es as they non everything .. easiest is to pay pref div then pay ords a special div with all extra cash
07-02-2017 11:46 AM
Steyn may have paid next to nothing for these - so he is prepared to wait for the dividend stream.
Quite possibly - given that he made his fortune in INSURANCE - he is going to propose something - perhaps a specific conversion to ordinary equity in return for participation in some or other venture. After all - these prefs do represent a long term "obstacle" to the dividend stream so they do have currency. BUT I speculate, of course, ... and that has often been my undoing.
Either way - this is a net positive development.
07-02-2017 04:04 PM
150 per share? Their last NAV is 35c. Does anyone know how this NAV is made up? You would think that with the cash they have and Stangen, this NAV should be alot higher. What am I missing?