Metro Holdings

[old friend]

Based on the latest financial results, there is little doubt that Metro's recurrent cash generated from operations is around the ordinary dividend rate of 2 cents a share.

However, even after netting off the current of 6 cents to be paid, the net cash sitting on the books of 46 cents (which excludes another 20 cents in liquid short and long term investments) remains glaring especially relative to the last traded share price of 77cents and NTA post dividends of S$1.28.

Management's inaction with regards to strategies on narrowing the gap between mkt price and underlying worth of the company underlines the lack of value that is assigned to either the cash hoard or other assets sitting in the company.

While one can fall back on Metro's track record in realising value in China, the latest realisation of its biggest lemon, Metro City Beijing, can be viewed as a narrow escape for the company and probably the last in the next 3 years.

As the seeds sowed for future assets realisation have visibly slowed, it is hard to forsee how Metro can sustain special dividends unless they change their dividend policy or their approach to enhance shareholders' wealth through share buybacks.

hi gg,

How much is their 30% stake in EC mall worth now?

Thanks!