Frankie10 wrote: Yes my mistake! You are correct, that price is from 2013 - my apologies!
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You are missing the equity HOOP will own in PMZ.
To be clear I am saying PMZ's NAV (inlcuding both HR and HOOP contribution) will be ~$31 per PMZ share.
Of which, HR unit holders will own 74%... (per PR)
Therefore, PMZ NAV of $31 per share x 74% / 4 = $5.74 (per PR)
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Using your numbers to emplain further...
Tomorrow if HR is 13.5 (it wont this is way too high) and PMZ is 15 (way to low) - that would not be equal to a 17.25 HR unit price pre-split..
its not PMZ / 4 = 3.75
you have to remember HR unit holders will only own 74% of PMZ not 100%..
therefore it would be PMZ x 74% / 4 = 2.775 (using your numbers)
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hope this clears it up for you buddy. And thank you for point out the dated PMZ price I was referring to!
CatchTheDip wrote: You are not correct.
Frankie10 wrote: This is not correct. />
PMZ will have NAV of about 5.50/unit x 4 = $22.00. The HOOP investment is being diluted. Unit holders will not get a magical boost to their NAV of PMZ units. HOPP isn't giving the buildings away, they are taking units.
Frankie10 wrote: I always forget how little people know and still invest in stocks. />
You are describing yourself. You may always forget, but I do not. I clearly understand how most, not all, do not have the proper investing knowledge and do not do their full research. Your comment above is the perfect example of the ignorance. Did you even read the 300+ page proxy? It clearly states the dilution of PMZ immediately the spin off. Do your research before telling people the wrong information.
Frankie10 wrote: This is not correct.
PMZ is a seperate entity. HR and HOOP are contributing net assets, both of which add to the NAV of PMZ. NAV per unit of PMZ goes up, but HR shareholders only participate in the % of NAV that HR has contributed.
Post spin-off HR will have a NAV per unit of ~$17. Your estimate of $15 per share implies 0.9 price to book. I would love for you to be right, but I think you are very far off the mark. There is so much uncertainty in HR with all the assets held for sale.
As stated, I think PMZ will trade with a much smaller discount to NAV than HR. All assets were fairly valued by a third party and a transaction was conducted based on valuation. In theory PMZ should be trading at a price to book of 1 - similar to Smart.
I always forget how little people know and still invest in stocks. Best not worry about unit price and just discuss thoughts of the discount to NAV each will have post spin off.
CatchTheDip wrote: Primaris will be diluting the HOPP 26% investment. Basically issuing units to purchase the HOPP assets, but HOPP will own those units. NAV per unit will not go up.
Having said that, I can see new HR getting a $15 unit price pretty quickly. If it does, that would mean we could see $19 combined pretty quick. But my guess was for Friday close. End of Jan I can see $19 (not adjusted for 4:1 split)
Frankie10 wrote: HR is contributing $5.50 NAV and will own 74%, therefore $5.50 / 74% = $7.43 x 4 (4:1) = $29.72
I predict a 10% to 20% discount to NAV, therefore price range of $23.78 to $26.75
CatchTheDip wrote:
Anyone want to play this game?
Friday January 7th, trading price
PMZ $4.00 ($16.00 after 4:1)
HR $13.75
= $17.75 combined.