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Leslie Yeo
Apr 04, 2023 1:26AM ET
The stock is dirt cheap. Their net cash is understated. On top of their capital contribution, they lend to their property project J.V.s and the monies are still sitting in the projects' accounts. Moreover, their actual borrowings are lower than what are on their books coz the loan relating to their Perth property is fully consolidated according to accounting rules. That said, management is apathetic when it comes to M.I.'s interests. They have largely ignored suggestions to use their excess cash to bring down borrowings as much as possible to save interest costs. Instead, they have been investing in development projects for paltry and at times negative returns. Their administrative expenses are also too high (and rising). M.I. should gather together to apply pressure on management during upcoming AGM to start serving M.I. interests.
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