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Wow in that case, it does seem like a real bargin at this price of 44cts. Don’t know why its share price has been crushed so badly.
ReplyWell, do hope that doesn’t happen. Does it mean we will get back the NTA price per share should the fund be discountinued? Do you happen to know what the NTA is?
Also, does the share price in any way affect how much dividends we will get? Now that the current price is like 44cts.. if the dividends percentage remains at 10%, will we be getting like 4.4 cts per year?
ReplyBased on the last quarterly report for the period ended June 08, MIIF has net assets of $1.25/share.
If the income and cash flow do not change, they should be able to maintain the current payout of 4.25cents every half yearly. The market price has no bearing on it.
ReplyHi, if Macquaire really goes bust, I really want to know your opinion on how MIIF will be affected.
ReplyMy personal opinion of the worst case scenario is that they will wind up MIIF, sell off the assets and return proceeds to unit holders.
Another scenario is that someone will buy over.
ReplyLC,
In the worst case scenario where Macquaire Bank fails, how will it affect MIIF?
ReplyHi Andrew,
While both these give good dividends, they are definitely quite different in nature.
MIIF holds solid infrastruture assets while Babcock has a few different classses of investments, some of which can be difficult to value.
MIIF has been sold down quite badly recently due to concerns over its parent. The question to ask yourself (for the worst case scenario) is if the parent goes bust, how will it impact MIIF?
In the event that MIIF has to close down, what will you get back?
If you can take a strong conviction on that, you will know whether to buy, sell or do nothing at current prices.
Replymiif and babcock brown seem to be of same nature, but it is abit worrysome that babcok brown are not so sound theseday in view of the plunging share price ….will any of these be the next victim like what we see in wall street.
i am also holding these 2 counter.
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