Good idea to subscribe to the rights issue to avoid EPS dilution
- the business is a strong earnings engine, with low debt
- strong moat in funds & REIT management, with very few competitors
- strong management
- $1 per share is quit attractive given its earnings power
Whats bit unclear is why opt for a rights issue vs debt. Strong balance sheet provides good capacity to take on debt.
Why rights issue at such a low price?
(23-11-2015, 01:18 PM)Muser Wrote: [ -> ]Good idea to subscribe to the rights issue to avoid EPS dilution
- the business is a strong earnings engine, with low debt
- strong moat in funds & REIT management, with very few competitors
- strong management
- $1 per share is quit attractive given its earnings power
Whats bit unclear is why opt for a rights issue vs debt. Strong balance sheet provides good capacity to take on debt.
Why rights issue at such a low price?
Its a Fun mgr with a hard time trying to look for good value assets to manage to earn a fee...
Says who there is little competition simply because there is no listed competition?
Mgt - already diluted substantially for 2 years diverted attention - now has additional distraction to mgt own $... I think John quite lucky to have found S Trading to help him and Superman exit and now he is still a paid professional... win-lose for himself/superman and S Trading
Rights issue at such low price - got to convince S Trading that they still can get in for wrong term at lower price/book.... ie still remain hopeful for the tide to turn...
Kaypoh Buddy
GG
(23-11-2015, 01:23 PM)greengiraffe Wrote: [ -> ] (23-11-2015, 01:18 PM)Muser Wrote: [ -> ]Good idea to subscribe to the rights issue to avoid EPS dilution
- the business is a strong earnings engine, with low debt
- strong moat in funds & REIT management, with very few competitors
- strong management
- $1 per share is quit attractive given its earnings power
Whats bit unclear is why opt for a rights issue vs debt. Strong balance sheet provides good capacity to take on debt.
Why rights issue at such a low price?
Its a Fun mgr with a hard time trying to look for good value assets to manage to earn a fee...
Says who there is little competition simply because there is no listed competition?
Mgt - already diluted substantially for 2 years diverted attention - now has additional distraction to mgt own $... I think John quite lucky to have found S Trading to help him and Superman exit and now he is still a paid professional... win-lose for himself/superman and S Trading
Rights issue at such low price - got to convince S Trading that they still can get in for wrong term at lower price/book.... ie still remain hopeful for the tide to turn...
Kaypoh Buddy
GG
John & S.Trading still hold 40% together. Despite competition from smaller and unlisted firms, ARA has built strong reputation to attract funds. Its going thro a cyclical rough patch, which is part of the game.
(23-11-2015, 01:43 PM)Muser Wrote: [ -> ] (23-11-2015, 01:23 PM)greengiraffe Wrote: [ -> ] (23-11-2015, 01:18 PM)Muser Wrote: [ -> ]Good idea to subscribe to the rights issue to avoid EPS dilution
- the business is a strong earnings engine, with low debt
- strong moat in funds & REIT management, with very few competitors
- strong management
- $1 per share is quit attractive given its earnings power
Whats bit unclear is why opt for a rights issue vs debt. Strong balance sheet provides good capacity to take on debt.
Why rights issue at such a low price?
Its a Fun mgr with a hard time trying to look for good value assets to manage to earn a fee...
Says who there is little competition simply because there is no listed competition?
Mgt - already diluted substantially for 2 years diverted attention - now has additional distraction to mgt own $... I think John quite lucky to have found S Trading to help him and Superman exit and now he is still a paid professional... win-lose for himself/superman and S Trading
Rights issue at such low price - got to convince S Trading that they still can get in for wrong term at lower price/book.... ie still remain hopeful for the tide to turn...
Kaypoh Buddy
GG
John & S.Trading still hold 40% together. Despite competition from smaller and unlisted firms, ARA has built strong reputation to attract funds. Its going thro a cyclical rough patch, which is part of the game.
John can't possibly sell everything as it is a fun mgt business and he is a key person risks. For him to be able to dilute a big chunk and channel into his family office is already a feat.
Asset mgr reputation - Capland, Keppel, Frasers Centrepoint and various others. Superman has largely disembarked liao and China is probably dead end for deals for time being...
ARA now has to go on its own to hunt down assets for management and with abundance of $ globally, ARA is noone when u consider the lights of global investment bankers such as Macquarie and other angmos.
Fun mgt businesses needs internal assets as origination. Expertise largely dispensable when the ability to make $ for your clients runs out...
I will pay 5% and even performance bonuses as long as my Fun Mgr performs and will complain even if they charge me 0.5% if i feel tht I can do better leaving my $ in the bank.
JL is ranked 59 by PERE being the 100 most influential of the decade
________________________________________________________________________________________________________________________________
2005 - 2015
THE 100 MOST
INFLUENTIAL OF
THE DECADE
Without the impact of the people ranked here, the past 10 years would have looked remarkably different for private real estate
If you were to scour the private real estate universe for institutional investors
that reduced their exposure to the asset class during the last decade you would struggle to find many.
To the contrary: for most investors, private real estate has become an increasingly important component of the institutional portfolio. For many, the allocations are now measureable in double-digit percentage points.
Of course, there are some natural forces at play. For instance, the investible universe for the industry is continually expanding as more and more real estate is developed. Further, as increasing numbers of institutions appreciate diversification, collateralization and inflation-hedging merits of bricks and mortar, the asset class seems set to remain on an upward trajectory.
And yet, if you speak to any of the major organizations within the sector, they will tell you that rather than the assets themselves, it is their people that are of most value. In fact, you’d be hard- pressed to find a more ‘people’ business than private real estate.
It is precisely for that reason that for………………………………………………………..
https://www.perenews.com/uploadedFiles/P...ntials.pdf
_______________________________________________________________________________________________________________________________________
> Whats bit unclear is why opt for a rights issue vs debt. Strong balance sheet provides good capacity to take on debt.
This is a good and valid question. Most likely some shareholders will ask at next year's AGM.
John Lim has always stressed the order of priority:
1. (Property Fund) investors No. 1
2. ARA Shareholders
3. ARA staff
Remember that this rights issue is structured not to pay up debts, but possibly to expand AUM (on the circular). And he has put his $ where his mouth is.
There will be skeptics and there will be sell-downs. You got to believe in your own conviction and the viability of the business, the credibility of the mgt.
(22-11-2015, 09:25 PM)owq Wrote: [ -> ]Since your shares are in CDP, you have to apply through CDP. Read the Offer Information Statement carefully. The easiest way is to go POSB ATM and apply/pay for rights. Make sure you apply before the deadline, if you didn't sell the rights.
The rights should be priced relative to the current trading price. Which may not be $1.26.
Thanks. I sort of get it now. So it will be like applying shares for IPO i only deal with the bank. I will go to the ATM terminal and key in the units of allocated rights that i want to take up, straight away the bank will deduct the money from my account?
Possible to take partly from ATM and sell partly to the open market? I am thinking of tidy up my odd lots due to the previous stock splits.
Lastly i saw there are 2 rights counters "ARA Asset Mgt R" and "ARA Asset Mgt R1" with different lot size of 100 and 1. If i traded at both counters, end of the day will the 2 trades combined into 1 single contract?
> Lastly i saw there are 2 rights counters "ARA Asset Mgt R" and "ARA Asset Mgt R1" with different lot size of 100 and 1. If i traded at
> both counters, end of the day will the 2 trades combined into 1 single contract?
My dealer advised me to go for the "R' option. He said the "R1" is more for the sellers.
(24-11-2015, 04:36 PM)Contrarian Wrote: [ -> ]> Lastly i saw there are 2 rights counters "ARA Asset Mgt R" and "ARA Asset Mgt R1" with different lot size of 100 and 1. If i traded at
> both counters, end of the day will the 2 trades combined into 1 single contract?
My dealer advised me to go for the "R' option. He said the "R1" is more for the sellers.
Yes, both trades will be combined into 1 single contract if you trade at both counters.