If it hits 4 cents then Greedy must surely become a buyer as MOF will have a 75% p.a distribution yield.
In fact, given the next distribution will be actually paid in about 2 months (but earned 31/3/09) and distributions are paid quarterly and thus have a compounding effect, the effective yield in year 1 would be even higher than 75%.
I'll top again at 4 cents for sure but if we follow Greedy's lead then rather than dive in at 4 cents we should all hold off for it to go to 3 cents then we will get an effective yield which will be above 100% in year 1.
Put a buy order in at 3 cents Greedy. The distribution will fully refund your purchase in year 1 plus you will have 60 cents worth of potential capital gains sometime down the track based on current valuations.
Lets say it takes 5 years to have the value restored. Thats 5 years of at least 3 cent a year in distributions but it is likely to be much higher as as income levels are restored plus you would hope to get 60 cents in capital gains if the discount on the share price is removed over the 5 years (and properties values remain the same, if property values actually rise the your capital gain goes up above 60 cents of course). So Greedy gets 5 x 3 + 60 = 68 cents return for a 3 cent outlay. If you pay up at 7.5 cents now, you will only get 5 x 3 + 52.5 = 60.5 cents back over 5 years.
hahahahaha
MOF Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
