Miniminer what are some examples of businesses you like at today's prices?

I don't disagree with your views on the risks or management. The aveo deal was a joke, I also agree with you there. Looking at the situation objectively, the price justify the risk personally. Aveo was selling closer to 35% discount to assset value, you might argue that there wasnt enough marigin of safety there like there is here. Can't find any other set of assets of such high quality for this price. The assets are a solid investment, the management is speculative.

As far as using discount to true intrinsic value as a way to look at investments, this is an age old methodology from Ben Graham, father of value investing and used by Buffett.

This business is at maximum pesimism now. Moving forward, mulpha has a trove of trophy assets which are all performing well.

Commercial as expected and indexed to inflation, was not effected in property downturn in Australia. Real estate seeing stronger settlements in Brisbane. Enterprising management lending credit to distressed developers in aus, which in my oppinion is a better business than development. Hayman back up and running. Monetised cairs rydges. Leasure farm is struggling and will do so in the mid term until the market turns and they see more foreign investment.

Despite management/Brookfield ripping off shareholders, its undeniable that Brookfield is a specialist at cleaning up companies to sell or IPO. We will likely see aveo get monetised in the next 3-5 years. The write down is a short term accounting querk that is based on the quoted takeover bid from Brookfield (2.15 when nta is 3.5+ and at the trough of a property market and sentiment). The true economic value will be unlocked when Brookfield looks to exit.

This is an amazing set up and management should buy back stock. Quality set of assets for 1.90 when a fair value for the lot is 8+? Business is also cashflow positive thanks to resorts and commercial so not a melting ice cube.

Only risk is that management may enriches themselves rather than shareholders, but I think the risk is covered in that 75% discount. Would be a good asymetric bet here

Sale of Rydges Esplanade Resort Located in Cairns Australia announced on the 17 July 2019 has been completed for a total consideration of A$35.8 million (equivalent to approximately
RM104.5 million)

Shareholders approve the takeover bid. Court has to approve it and its through. 13th November 2019

FIRB approves Mulpha's election of script

Mulpha has elected to take 1/3 of its ownership in Aveo as Cash (100m AUD, 285m MYR). The current market cap of Mulpha is 616M MYR. The additional liquid assets are very attractive to shareholders.

Mulpha can make land acquisitions in Sydneys depressed market (not a bad idea) or preferably, BUYBACK shares. Buying back shares at these depressed values would be equivalent to buying trophy Sydney properties at 70% off.

The the Brookfield takeover of Aveo, The scheme still needs to be voted for but the indicative timeline suggests the transaction will be completed before the end of the year.

Scheme meeting late October
Effective date Early November
Implementation date mid November

It is encouraging that management is taking steps to close the gap between Net Tangible Asset value and the price of the shares

I suspect Brookfield is going to come in, clean up the business and exit in 3-5 years at a fair price. The independent valuation in the scheme booklet says that the medium to long term is bright for Aveo and that short term looks bad, but with Brookfield coming onboard as a financial backdrop for Aveo, we can expect good things from Aveo moving forward.

Mulpha is expected to keep the stake in Aveo via the script as Brookfield works its magic. Mulpha shareholders will benefit when Brookfield exits Aveo after it cleans it up. Aveo shares were selling at a discount prior to the deal, but with Brookfield, the business should find itself reflecting the businesses true value sooner or later

Mulpha just sold the 4-star Esplanade Cairns hotel for 60% premium to book value. Increases NTA from 10.19RM to 10.32RM/Share (Share price 2.15RM). Reduces Gearings from 42% to 40%

In response to some of the above comments, the salary of the management here is much less than other less shareholder friendly companies in the space like KSL where the family gets compensated 10 mill while it is closer to 1.5 mill at Mulpha.

Never the less, I would like to hear of specific examples where members know that Mulpha has acted in the disinterest of shareholders. I know that there was talk of the company canceling non marketable during the consolidation 10:1 a few years back. Not sure if this was true

Hi KcChongNZ,

Excellent article on MOS. Would like to get your feedback on whether this is an appropriate way to measure MOS. More particularly, if there are any other risks I'm missing (I am not familiar with the Malaysian market).

This writeup is about Mulpha. Cheers! https://sites.google.com/view/TheBadInvestor#h.p_UYnq7upShHG5

Keen to hear your oppinions on my detailed writeup of Mulpha. Cheers!

https://sites.google.com/view/TheBadInvestor