Recent substantial shareholder notices look like fund managers building an income stream ... IMO inherent assumption is that the prevailing price is stable and so ROI reasonably measurable. Of course I don't drown in awe of fund managers skills ... lateral thinking with other peoples money isn't always a complex science!!! Encouraging nonetheless.
At page 28 of the August 2011 presentation JPTA was valued at 13.9 Bn Yen, debt 18.8 Bn Yen and NPI per security of 15.3 Yen. Interest rate @ 2.19% ... reaonable in context of portfolio.
JPT a more stable fund in the group is valued at 25.7 Bn Yen, debt 13.4 Bn Yen and NPI per security @ 25.6 Yen.
Keeping it my maths really really simple I might go
Of course, using my simple simple simple maths I could also compare:
15.3 / 18.8 versus 25.6 / 13.4 ... the comparison is very very different.
On this simpleton basis I think the asset is performing reasonably in context of its market but the debt is simply inappropriate ... and as its non-recourse and I assume has historically been priced at non-recourse lending rates, I am of the view that it is equitable that the lender adjust his expectations and not AJA
... the trick then is how to collectively arrive at that resolve
All very wonderful speculation so DYOR.
Have a great day!
AJA Price at posting:
$2.08 Sentiment: Hold Disclosure: Held
