re: Ann: Completion of Senior Loan Refinancin... I believe last institutional placement was at $3.08 Just before the first earthquake. Settlements took place soon after that and AJA got all the money they asked for, acording to their ASX announcement.
This resulted in dilution for retail share holders and translated to reduction in proposed distibution to 20c.
Previously the guidance was 22.5c a unit on the undiluted capital.
I would aggree that the unit may have found a floor for the time being at around $3 give or take and trading has been very thin of late.
That does not suprise me, given the unfortunate event in Japan, the earthquakes and nuclear emergency. As it is still continuing, I am not surprised that investors are not rushing to buy the stock. Similarily, trying to sell a large parcel could tank the SP too.
I am not concerned about the distribution, but the future SP. Unless the NTA levels off or turns north, usually the SP goes further south. Looks like the market discounts the SP to about 60 to 65% of the NTA - judging from previous experience.
This is larger discount than localy based REITs and reflects the FX risk as well opinion of the future direction of the SP IMO.
They say things come to those who wait but also, as J.M Keynes said, in the long term we are all dead.
I sure hope to see the SP improving before that, but who knows.
AJA Price at posting:
$3.07 Sentiment: Hold Disclosure: Held
