Melcor Developments Ltd T.MRD

AGM

[Thor16]

Any specific thoughts?

Capital return questions seemed in focus.

[longrun86]

I listed to the recap of the call. A few things I took away some of which are already well known: NCIB: This is an agenda item for their next board meeting and I suspect it will be renewed. Substantial Issuer Bid: They addressed this and said that the liquidity in the shares don't exist for them to gain approval for this. Share Price Apathy: It was acknowledged that the

[Thor16]

Thank you for the recap. I as well found some comments interesting regarding share price, dividend etc.  What i found more interesting was what wasn't said about Harmony and U.S assets.  Your last two comments sum it up well!

[longrun86]

I am enjoying the discussion today. Using a dividend discount valuation model results in a share price that approximates the current share price. The only way to disrupt this is to increase the dividend (given an SIB is not possible) and address the Capital Allocation framework and return profile by division. My hope is that we see some liquidation of these assets and a Special Dividend to

[Thor16]

The whole situation really is interesting from many angles.  The share price alone, trading at ~1/3 book, and probably something like 1/5 or 1/6 tangible assets however having no liquidity presents all sorts of opportunities.  The question of course being without a specific catalyst event (sale, privitzaion etc) how does the share price really move higher. Clearly they explored a SIB

[babybunny]

Melcor really is an unbelievable deal.  But that alone will not move the share price. My somewhat pessimistic base assumption is for the company to continue cranking out decent earnings, $2 - $3 a share and growing, which represents about an 8% ROE.   The fact that ROE remains below "par" of 10% will continue to restrain the share price.  But nevertheless the