Metro Holdings

This has been a Big Disappointment to value investors. Still at 68 cents despite being clearly undervalued. I copy DMG latest report dated 20 Jan 2012 here --- Got hope or not?
To date, all its property ventures have been profitable, with divestment gains ranging from 5-25% premium over book value. Over the past five years, shareholders’ equity compounded at a CAGR of 9%, before taking into account dividends.

The group is currently in the midst of selling its 50% stake in retail mall Metro City Beijing at a price tag of RMB 1.25b, a 50% premium over its latest valuation. Should the deal be successful, it will be able to book a pretax profit of S$87.4m, with NAV/share raised by 9 cents. Metro’s assets comprise

1) a China-based property portfolio worth $683m;
2) property-related investments with a market value of $173m;

3) an established retail business conservatively valued at $40m; and

4) net cash of some S$300m. This gives rise to a RNAV of $1.02b, or $1.23/share, after netting out liabilities.

We value the stock at $0.86/share on a discount of 30% to RNAV, suggesting 29% upside from current levels. BUY recommended. (Goh Han Peng) 
 

U can only blame management for failing to crystallise the value in Metro for minority shareholders. I agree that Metro is grossly undervalued. I also venture that mgt has failed because the value has been there for so long, yet the stock price cannot reflect it.

Back in 2009, Sebastian Chong had highlighted Metro. It was then around 64 cents. Nearly 3 years on, it's still ard there  - to be exact, 68 cents. Wah piang.!

nextinsight.net/index.php/story-archive-...s-india-guocoleisure

The dividends they paid out are measly , with historical yield at 4.4%

73 cents, seems like dead on the water. But can buy?

Metro will announce FY results on May 30. As then date approached, the stock has firmed up, in anticipation of a special dividend. I'm certain there will be one. But I am not certain it will be a juicy one. Nonentheless, Metro is a very undervalued stock. The cold cash in the storeroom is the draw.

2 cent final dividend FY12 -- same as for FY11.
4 cent special div -- 3 cents more than for FY11.

total for FY12 = 6 cents, versus 3 cents in FY11.
I consider this pathetic, and the stock price will prob get a sell wave today from 78-cent close of yesterday .

To compare correctly, you have to account for the 1-for-5 bonus share issue last year. It means that in effect, the dividend payout this year is even higher than the 6-cents.

Anyway, at 77 cts stock price, the 7.8%  yield is super!