Australian (ASX) Stock Market Forum

Wellington Capital PIF/Octaviar (MFS) PIF

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According to FCA11-698 WC tried to change the PIF constitution so that new units could be issue at 90 VWAP and then 30 day VWAP.

Of course, those changes were reversed by the Federal Court of Australia.

Hutson defended WC's actions with according to the Courier Mail: 'Wellington managing director Jenny Hutson described the decision as "disappointing" and disagreed with the
court's interpretation of how a fund manager can implement changes to a constitution without adversely affecting investor rights.
Ms Hutson said her firm had taken "proper and appropriate" action to implement the rights issue after consulting with the NSX, the Australian Securities and Investments Commission and its own legal counsel." [emphasis added]

Ummm ...... how does disagreeing with the Federal Court of Australia help PIF unit holders. Just costs the unit holders more money doesn't it?

Oh and IMO, WC didn't take "proper and appropriate" action. Because the Federal Court of Australia says so.

As of Friday the 30 day VWAP (volume weighted average price) stood at 18.58c. Right?

(Interestingly those transactions of 9.8c and 10c on 27 June sit just inside a 60 day VWAP. Right?)

Prior to last Thrusday and Friday's "please explain" trading activity the 30 day VWAP was 7.32c.

That's a spectacular jump in a little over one day.

I also note the last trade of 460,000 units at 17c each is listed as at 4:09 pm. I.e. AFTER the market closed. There appears to have been trading AFTER the market closed on the Thursday as well.

Prior to last week there'd been only 350,432 units booked as traded after 4pm. That's out of a total of 19,850,889 units traded prior to last week's spike.

What do we think? Announcement of a new placement soon? Some wash transactions?
 
selciper said:
Can 't help asking myself whether JH has made a serious error of judgement by calling next week's meetings. Is the WC 'team" so out of touch as to believe that the audiences will silently accept craftily prepared propaganda?
Click to expand...

I don't know, but from a market perspective any positive news Hutson's WC puts out does little to affect the NSX price of the units. But since the former RE director and secretary Craig Lewiss Wallace takes out a big stake (via Yuan Investments) the price has shot up. ;)

From that perspective - it suggests the markey doesn't think much of Hutson's WC.

Wouldn't be because Hutson's TEAM can't even get the basic info about PIF right on WellCap's web pages would it? See http://www.wellcap.com.au/index.php?option=com_content&view=article&id=7&Itemid=8
 
JH's response to the NSX: http://www.nsxa.com.au/ftp/news/021724330.PDF

"I know nothing...nothing". (Just like Sergeant Schultz of Hogan's Heroes.)

Jenny, when are you going to learn to tell the truth and the meaning of the words "honesty", "integrity" and "transparency"?

Obviously you think the NSX will believe your untruths you bandy about so freely; we, the investors don't believe you for a second.
 
selciper said:
Can 't help asking myself whether JH has made a serious error of judgement by calling next week's meetings. Is the WC 'team" so out of touch as to believe that the audiences will silently accept craftily prepared propaganda?
Click to expand...

Selciper


A recent survey found that 20% of the public believe Sherlock Holmes, Miss Marple, and Black Adder are real people.

Only 8% of people change their opinion in regards political affiliations , Tony Abbot could take off his Budgie Snugglers and go running down the street stark naked and it would not make the slightest difference in how people vote .

Therefore, the short answer to your question is yes
 
Thanks for everyone in their efforts in getting our money back.
Much appreciated.

I have been a unit holder since 2007 and still waiting for my redemption.

I am a system analyst and could someone verify the following figures and timeframes?

The fund has 755,032,768 units all up at a estimated value (Dec 2010) of 34 cents each.
So that is $256,711,141 all up value of fund.

Now WC are selling everything within 2 years, so I assume WC will pay us back 34 cents in the dollar.

But as the real estate market is going down by over 12% in some areas then I work out
we will get back, approx 30 cents in the dollar.

Of course WC will want commission and management fees, etc which could be another
10%, then we will get back, approx 26.5 cents in the dollar.

So is my estimate of around 26 cents in the dollar, feasible in 2 years time?
 
lawry1dog said:
The fund has 755,032,768 units all up at a estimated value (Dec 2010) of 34 cents each.
Click to expand...

I don't know if your assumptions on future value are correct, but the base number of units is now incorrect. Approximately 75 million additional units were sold in the capital raising in May. The number of units is now around 830,000,000. So if the method of calculation is correct the units will be worth less than the 26 cents you have posted.
 
AusInCA said:
I don't know if your assumptions on future value are correct, but the base number of units is now incorrect. Approximately 75 million additional units were sold in the capital raising in May. The number of units is now around 830,000,000. So if the method of calculation is correct the units will be worth less than the 26 cents you have posted.
Click to expand...

Thanks for the information, AusInCA.
I have done the figures again and estimate that it could be finally 24 cents in the dollar.

The current fund valuation is now:- 30.9 cents (if there is 830,000,000 units).
 
Jadel said:
Selciper


A recent survey found that 20% of the public believe Sherlock Holmes, Miss Marple, and Black Adder are real people.

Only 8% of people change their opinion in regards political affiliations , Tony Abbot could take off his Budgie Snugglers and go running down the street stark naked and it would not make the slightest difference in how people vote .

Therefore, the short answer to your question is yes
Click to expand...

Jadel - Unfortunately you are probably right. I may be a victim - again - of wishful thinking. After all, I believed that there would be serious after-effects from the alleged stacking of the EGM. And that certainly hasn't happened up to now.
 
lawry1dog said:
...

So is my estimate of around 26 cents in the dollar, feasible in 2 years time?
Click to expand...

You probably got that figure of ~755 million units from WC's webpage http://www.wellcap.com.au/index.php?option=com_content&view=article&id=7&Itemid=8

The Hutson lead WC team seam to be so incompetent and/or unprofessional that they can't get basic facts about the fund correct on this key tool for attracting investors - their web presence.

Go to nsxa.com.au, enter PIN in market data and select 'Capital'.

There are 830,532,768 units outstanding. With a 30/12/10 total equity of $253,321,000 this gave a NTA per share of 30.91cents. But:

WC announced to the market on 11 July its intention to raise more capital through the issue of new shares in a new class. See http://nsxa.com.au/ftp/news/021724205.PDF

So current value per unit WILL, according to WC, be further diluted. I.e. watered down.

Also -

Hutson has recently complained about the high level of legal activity. So expect the value of PIF to be further smashed down by legal expenses which the lawyers will demand are paid for out of real $. As opposed to dilutable PIF units.

The high level of legal activity is of course WC's fault in the first place.

WC allowed the unit price on the NSX to languish at around 1/3 of NTA for years. IMLO that's painting a HUGE target on PIF. IMLO it's hopelessly naiive of WC to expect that PIF wouldn't become the target of a takeover bid. And of course it did didn't it?

Then there was the CasCap bid to become RE. This was triggered by WC's decision to issue another 364,677,589 units. See http://nsxa.com.au/ftp/news/021723982.PDF. The capital raise was purely and solely WC's decision. Again, WC would be hopelessly naiive in believing that such a massive dilution wouldn't be challenged.

WC's, IMLO, judgement is costing PIF unitholders lots of real $. WC let the NSX price languish and the inevitable takeover bid arrived via ALFPIF. WC chose to issue a massive number of new units and the predictable challenge arose. WC chose to amend the constitution and the Federal Court (Gordon J) told WC it was wrong.

It doesn't matter what Hutson's WC thinks, their actions have lead to real $ costs to PIF unitholders.

That's just my lay perspective anyway. I bet a $100 that unit holders won't get the 14c per unit liquidation that Hutson threatened us with at the 2008 roadshow. Any taker?

And if unitholders don't get 14c then the record will show that Hutson and her team will have added absolutely no value whatsoever. (According the WC's very own figures) I wonder how the AFR are feeling now about putting Hutson in their Boss Magazine of July 2006. They gave her a leg up and look how that free kick is being rewarded. Or alternatively, it says something about the AFR.
 
JohnH said:
http://www.nsxa.com.au/ftp/news/021724332.PDF

I see that our new sophisticated investor Craig has purchased another 669550 @ 16 cents. This now gives him 10.45% voting power. ................ and Jenny of course will have no idea why he is so interested in our fund.;)
Click to expand...

http://www.nsxa.com.au/ftp/news/021724338.PDF

Add to that another 195,969 units at $0.1936 per unit purchased by Craig for 10.47% voting power reported today on the NSX. His holding is now 87,015,973 units.
 
Duped said:
You probably got that figure of ~755 million units from WC's webpage http://www.wellcap.com.au/index.php?option=com_content&view=article&id=7&Itemid=8

The Hutson lead WC team seam to be so incompetent and/or unprofessional that they can't get basic facts about the fund correct on this key tool for attracting investors - their web presence.

Go to nsxa.com.au, enter PIN in market data and select 'Capital'.

There are 830,532,768 units outstanding. With a 30/12/10 total equity of $253,321,000 this gave a NTA per share of 30.91cents. But:

WC announced to the market on 11 July its intention to raise more capital through the issue of new shares in a new class. See http://nsxa.com.au/ftp/news/021724205.PDF

So current value per unit WILL, according to WC, be further diluted. I.e. watered down.

Also -

Hutson has recently complained about the high level of legal activity. So expect the value of PIF to be further smashed down by legal expenses which the lawyers will demand are paid for out of real $. As opposed to dilutable PIF units.

The high level of legal activity is of course WC's fault in the first place.

WC allowed the unit price on the NSX to languish at around 1/3 of NTA for years. IMLO that's painting a HUGE target on PIF. IMLO it's hopelessly naiive of WC to expect that PIF wouldn't become the target of a takeover bid. And of course it did didn't it?

Then there was the CasCap bid to become RE. This was triggered by WC's decision to issue another 364,677,589 units. See http://nsxa.com.au/ftp/news/021723982.PDF. The capital raise was purely and solely WC's decision. Again, WC would be hopelessly naiive in believing that such a massive dilution wouldn't be challenged.

WC's, IMLO, judgement is costing PIF unitholders lots of real $. WC let the NSX price languish and the inevitable takeover bid arrived via ALFPIF. WC chose to issue a massive number of new units and the predictable challenge arose. WC chose to amend the constitution and the Federal Court (Gordon J) told WC it was wrong.

It doesn't matter what Hutson's WC thinks, their actions have lead to real $ costs to PIF unitholders.

That's just my lay perspective anyway. I bet a $100 that unit holders won't get the 14c per unit liquidation that Hutson threatened us with at the 2008 roadshow. Any taker?

And if unitholders don't get 14c then the record will show that Hutson and her team will have added absolutely no value whatsoever. (According the WC's very own figures) I wonder how the AFR are feeling now about putting Hutson in their Boss Magazine of July 2006. They gave her a leg up and look how that free kick is being rewarded. Or alternatively, it says something about the AFR.
Click to expand...


Duped
Also keep in mind that we have some massive litigation currently underway against the Fund

Please check your private message box
 
Jadel said:
Duped
Also keep in mind that we have some massive litigation currently underway against the Fund

Please check your private message box
Click to expand...

Sorry. Let me clarify that: I bet a $100 that unit holders won't get the 14c per unit liquidation that Hutson threatened us with at the 2008 roadshow if WC remains at the helm and manages PIF as it has stated it will. Any Taker.
 
Duped said:
Sorry. Let me clarify that: I bet a $100 that unit holders won't get the 14c per unit liquidation that Hutson threatened us with at the 2008 roadshow if WC remains at the helm and manages PIF as it has stated it will. Any Taker.
Click to expand...

Don't you wish you had Wellington Capital working for the unit holders. When asked at recent Court proceedings the Manager of WC said she was keen to keep the position of RE because of the 30 staff employed by Wellington Capital. Very gracious indeed. So there you have it on oath, unit holders do not rate.
 
Sorry about my future calculation of the Unit Price in 2 years time.

Seems the figures are not realistic.

The current fund's worth is:- $253,321,000

I calculate that the fund will be worth in 2 years time :- $25,332,100
This after from history, properties have been sold at average half the original cost.
And also WC will probably want 20% for management, staff, legals, etc..

So that is $253,321,000 divided by 2 = $126,660,500
And take off 20% = $126,660,500 / 5 = $25,332,100

Now there are 830,532,768 unit holders, so the final unit price to paid out
will be:- $25,332,100 / 830,532,768 = 3 cents in the dollar.


Can someone verify these calculations?
 
lawry1dog

Your calcs indicate WC's 20% cut will amount to 3c per unit. Returns by your calcs would be ($126,660,500 - $25,332,100)/830,532,768 = 12c in the dollar.

Cheers.
 

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