d.o.g. Wrote:I look at book value per share because it also captures the effect of corporate actions like rights issues, placements and buybacks. HG Metal and Hupsteel do not measure up so well in this regard.
My numbers actually show Hupsteel to be the better performer in this regard, when compared over the same period (from AEH's IPO).
From 2005 till now, AEH didn't raise any cash. Hupsteel only raised cash once fr a private placement. The 2 rights issues were accompanied by huge bumper div (to utilize sect 44 credits), and didn't dilute sh who participated. Ditto with the bonus issue.
Hupsteel
Jun 2005 Equity (sh): 115.463m
Jun 2010 Equity (sh): 201.67m
Dividends paid from Jun 2005 to Jun 2010: 56.115m
Private Placement (2007): 26.781m
Jun 2010 Equity Adjusted = 201.67 + 56.115 - 26.781 = 231.004m.
Jun 2005 # shares: 301.549m
Jun 2010 # shares: 627.371m
Jun 2010 # shares (normalized): 627.371/1.875 = 334.598m
(Every 1 share in 2005 has become 1.875 shares without additional capital outlay, due to the rights + bonus).
Jun 2005 Book Val/sh = 115.463/301.549 = 0.383
Jun 2010 Book Val/sh = 231.004/334.598 = 0.690
CAGR = ((0.69/0.383) ^ 1/5) - 1 = 12.49%
AEH
Dec 2005 Equity (sh): 77.999m
Sep 2010 Equity (sh): 103.399m
Dividends paid from Dec 2005 to Sep 2010: 25.722m
Sep 2010 Equity Adjusted = 103.399 + 25.722 = 129.121m
# of shares = 273.534m (no change throughout)
Dec 2005 Book Val/sh = 77.999/273.534 = 0.285
Sep 2010 Book Val/sh = 129.121/273.534 = 0.472
CAGR = (0.472/0.285 ^ 1/4.75) - 1 = 11.2%
(Edit: Corrected Jun 2005 # shares for Hupsteel. Thx cif5000)