MIR - Mirrabooka Investments

[Belli]

A curious comment. But there again, elsewhere, a music thread #6279, was this comment

Yep, as I have stated previously I hold MIR, in fact I first bought MIR in 2006 and now hold 27,000 personally and the SMSF holds just short of 50,000 of them. To me it isn't a individual direct share. Individual direct shares to me are things such as BHP or NAB. I don't bother following those as the LICs and ETFs both I and the SMSF already have them. SMSF and personal combined they do, however, account for only 7% of my total portfolio.

All clear now?

 

[Dona Ferentes]

Half Yearly just out:

• Profit for the half-year was $3.4 million. This is 22.8% down on the previous corresponding period. Dividends and distributions received decreased by 29.0%.
• Revenue from operating activities was $3.3 million, 31.0% down on the previous corresponding period. This excludes capital gains on investments.
• The interim dividend of 3.5 cents per share fully franked (at 30%), the same as last year’s interim dividend, will be paid on 16 February 2021 to ordinary shareholders on the register on 25 January 2021. There is no conduit foreign income component of the dividend.
• All of the interim dividend is sourced from capital gains, on which the Company has paid or will pay tax. The amount of the pre-tax attributable gain, known as an “LIC capital gain”, attached to this dividend is 5 cents

- Despite the overall strength in the market, we have found opportunities to add new companies to the portfolio. NIB, Superloop and Nanosonics were purchased through temporary price weakness and Nuix was added through an initial public offering. The most material selling in the 6-month period has come from trimming some of the strongest portfolio performers, Objective Corporation and HUB24, and exiting our positions in Premier Investments and OptiComm, which was taken over. Selling activity has otherwise been relatively subdued as we remain confident in the stocks that we own.
- Mirrabooka remains focussed on long term opportunities in high quality companies and we are confident that with patience future market volatility will provide additional opportunities to invest. At the end of December 2020, Mirrabooka was close to fully invested and has therefore announced a Share Purchase Plan with this result to provide additional funds for the portfolio.

As the Half Yearly states, the previous 12 months have been very favourable, and exceeded relevant indexes
Portfolio return (including the full benefit of franking) – to 31 December 2020. Includes dividends and Franking, after costs
Period ........ MIR .............. Combined Small Ords / Mid Cap 50 Accumulation Index
6 months ... 33.0% ..... ..... 21.9%
One Year .... 29.2% ..... .... 13.8%
Five Years ... 14.3%pa ..... 13.1%pa
Ten Years ... 14.7%pa ....... 8.0%pa



I hold MIR in my SMSF having transferred 40,000 from my name in 2007. I have participated in most Corporate Events along the way, SPP and Rights issues, and also sold a few,,,, hence some divergence from MIR numbers. I have generated IRR numbers for my holdings, to end Dec 2020:
One Year ... 26.28%
Three Yrs ... 14.04%pa
Five Years ... 12.71%pa
Ten years .... 16.31%pa
Since 2007 ... 11.54%pa

 

[Belli]

Aside from the dividend, more informative is the new acquisitions including a placement with an IPO for "The Bike Exchange" It also seems MIR hasn't splashed money around for a lot of IPO's which tells me the management is rather cautious about many. And it's given the flick to "Premier Investments."

Shares issued under the SPP will be entitled to 50% of the dividend declared for the year ending 30 June 2021. In that case an temporary ASX code until converted after that dividend.

 

[Dona Ferentes]

I was surprised to see Nuix in there, as a new acquisition; it is not really a small cap stock. New, yes, but the Market Cap is now $2.7billion. Entry via the IPO at $5.31, putting in $3.56million, has proven to be advantageous as NXL is now trading above $9

Bike Exchange (IPO to be listed in February 2021) - they must be confident it is a sensible position. Likely to list BEX on 09 Feb

Operating an online marketplace that operates globally in eight countries across four geographical areas. The marketplace provides an efficient, technology‑driven platform to connect consumers with retailers of bicycle products and accessories through a convenient, transparent and efficient platform.

And I remember they did a similar exercise with MIRN a while ago. Raising $40million in the SPP is significant as M/C is about $400million. The price at $3.13 per new share (or VWAP calc if lower) is still above current NTA, if only a bit, with at least 3c discounted for the half dividend, I'd think.

 

[Belli]

I was surprised to see Nuix in there, as a new acquisition; it is not really a small cap stock

I had a look at the holdings basket for VAS. Nuix doesn't appear for some reason. And on that point it is even more strange as VAS is supposed to hold around 300 companies but according to its product data it holds 200 securities. Most unusual.

 

[Belli]

I had a look at the holdings basket for VAS. Nuix doesn't appear for some reason. And on that point it is even more strange as VAS is supposed to hold around 300 companies but according to its product data it holds 200 securities. Most unusual.

Darn you're careless @Belli. Look at VAS not STW and having done so, NXL does not appear in the VAS holdings either which means NXL fits with MIR's mandate of ex-50 (and ex-306 for that matter.)

 

[Dona Ferentes]

NXL is #135 on ASX market cap. $2.9bill.

Company directory

Search, sort and filter the full list of ASX companies. Link to all company details and share prices.

www2.asx.com.au

 

[Belli]

NXL is #135 on ASX market cap. $2.9bill.

Ah, I see. Good find. Notice it was listed in early December 2020 so it is possible S&P has yet to advise of any rebalance to the index which could be the reason VAS doesn't have it in its list of holdings. One of those curious things.

No matter. MIR has it and has applied its ex-50 mandate it would seem.

 

[Dona Ferentes]

SPP applications from 2,015 eligible shareholders (representing a participation rate of 28%) totalled $38.88m. There was no scale back of applications under the Plan.

The Company further advises that the price set in order to calculate the number of shares to be issued to participants in the 2021 Share Purchase Plan is $3.10 per share and the new SPP shares (ASX : MIRNA) will be issued on Tuesday 23 February 2021 and tradeable on the ASX on Wednesday 24 February 2021.

Shareholders are reminded that the new SPP shares issued will be eligible for fifty per cent of the final dividend that may be declared in respect of the financial year ending 30 June 2021. These shares will trade under the normal ASX code: MIR after existing ordinary shares go ex the entitlement to the final dividend in July 2021.

- not huge participation, but significant commitment by those that did. Increase in FUM of 7.5%; buy well, MIR

 

[barney]

SPP applications from 2,015 eligible shareholders (representing a participation rate of 28%) totalled $38.88m. There was no scale back of applications under the Plan.

Know nothing about the Stock, but the Chart is almost picture perfect since the Covid hit I'll be quiet though; Don't want to put the mocker on it!

 

[Dona Ferentes]

SPP applications from 2,015 eligible shareholders (representing a participation rate of 28%) totalled $38.88m. There was no scale back of applications under the Plan.

Some 8 Sells of MIRNA already listed, ranging from $3.30 to 3.36.... and all for 9677 shares, which would be the max allocation for $30K in the SPP.

- potential $2K scalp.

 

[Belli]

For some reason unknown to me, MIR hasn't yet issued shareholders with a notification of allocation of MIRNA shares which includes the price paid. Maybe it isn't going to which is rather strange. They were sent for the 2008 Rights Issue, the SPP in 2010 and that of 2015*.

The way I work, the Accountant and Auditors will need it for EoFY Financial Statements.

No matter. I've got the CHESS Notice so I'll get the issue price from the MIR web-site, combine both into one PDF document and keep along with all other records of share transactions I have in cloud, hard disk, NAS and external hard disk backups. I never rely on third parties to retain the necessary records.

*Edit: checked for a different entity. Also issued for the 2003 Rights Issue and the 2004 SPP.

 

[Dona Ferentes]

Mirrabooka has a Shareholder Teleconference/ Webinar coming up (no more Public meetings in selected Capitals)

the company has just put out an accompanying set of slides for this event. There is nothing new / market sensitive but I will put up some slides. I like p12.

 

[Dona Ferentes]

With the recently raised $38.9M .... some of the SPP proceeds have been invested across a number of companies:

Ansell ANN, Iress IRE, InfoMedia IFM, Select Harvests SHV, Dominos DMP, Fineos FCL, Temple & Webster TPW, Fisher & Paykel Healthcare FPH.

- nothing too outlandish there. Growth and dividends; and mainly adding to existing holdings

 

[Dona Ferentes]

Exploring some of our smaller stocks

We often talk about the larger companies in our portfolio, but we have a number of smaller stocks that are growing both as a business and as a position in our portfolio. [Two Portfolio managers] ... discuss the performance and position of four stocks: Xero, Mainfreight, Goodman Group and Fisher & Paykel Healthcare Corporation.

https://www.afi.com.au/news/exploring-some-...-smaller-stocks

That was from AFI, the sister LIC to Mirrabooka. Three of the four mentioned are held by MIR as well and Mainfreight is the top holding in the portfolio

 

[Dona Ferentes]

MIR hitting all time highs, getting to $3.54 today.

Final Results for the year are one of the early cabs off the rank, coming out on Wed 14 July. Generally, the August dividend is higher than Feb one, running 6.5c compared to 3.5c historically, or 10c ff for the year. Special dividends have been a feature quite frequently, and there should be some LIC Capital Gain to pass through for tax reasons. A few holdings in the portfolio have gone; Opticomm was taken over and I notice QUB out of the Top 20 - #7 and $15m in Feb and not there in March. Probably a few other disposals as well.

And when the SPP raising of MIRNA goes ex-dividend, these shares will be folded into MIR.

(HOLD)

 

[Dona Ferentes]

Mirrabooka has announced its Annual Results, and jolly healthy ones!

• The 12 month portfolio return for Mirrabooka including franking of 50.9%, was well ahead of the combined Small and Mid Cap 50 benchmark return over the corresponding period, including franking, of 35.2%. The outperformance over both the short and long term is a very pleasing result, and further highlights the resilience of our investment approach.
• The Full Year Profit was $6.4 million, in line with the result last year. The fall in the contribution from investment income as companies reduced or suspended dividend payments was offset by an improved contribution from the Trading Portfolio.
• Adjustments made to the portfolio though the period, reflecting the increased valuation risk in several holdings following very strong recent performance, produced realised gains after tax of $29.3 million. In the corresponding period last year realised gains after tax were $5.2 million.
• The Company maintained the final dividend at 6.5 cents per share fully franked. A special fully franked dividend of 2.0 cents per share has also been declared following the strong realised capital gains for the year. This brings total dividends for the year to 12.0 cents per share, fully franked versus 10 cents per share fully franked last year. Shares issued under the share purchase plan in February 2021 are entitled to fifty percent of the total final dividend, which is 4.25 cents per share fully franked.

Major acquisitions (above $5 million) (including using the proceeds from Feb SPP)
PEXA Group (participation in IPO)
FINEOS Corporation (includes participation in placement @$4.26 per share)
NIB Holdings
Corporate Travel Management
Iress

Other additions to portfolio:
Superloop
Select Harvests
IDP Education
Lark Distilling Company
PSC Insurance Group
Nanosonics
Bike Exchange
Domino's Pizza Enterprises

Major Disposals/ Reductions
Objective Corporation
Qube Holdings
Reece
Brickworks (total disposal #)
HUB24

The other high-profile IPO that Mirrabooka participated in was Nuix. However, this position was sold relatively quickly without loss following signs that it would not meet our initial expectations.

 

[Belli]

According to the ASX announcement MIRNA shares qualify for DRP/BSP which is for both MIR and MIRNA is as a 2.5% discount. How the company applies this to the MIRNA shares will be interesting.

Both the ordinary dividend and special dividends were sourced from Capital Gains so an LIC CG Discount will apply.

 

[Dona Ferentes]

According to the ASX announcement MIRNA shares qualify for DRP/BSP ... How the company applies this to the MIRNA shares will be interesting.

Good point.

 

[Belli]

Good point.

I suspect it will be based on the DRP/BSP price of MIR shares given this.

So I am guessing MIRNA, when converted to MIR shares, will carry the 4.25c dividend across but the issue price will be according to this. Just a guess.