MIR - Mirrabooka Investments

[Dona Ferentes]

with reporting season just behind us, and some small caps coming out with great results, it is interesting to see the NTA for MIR move up nearly 9% for the month, from $3.47 to $3.77.

MIR shares are still at a premium to the NTA, though this has dropped from near ten percent to less than 5.

- makes DRP participation at 3.70 a better play, and the now -converted MIRNA has delivered 25% in the 6 months

 

[Belli]

The movement in the NTA is interesting. This is also informative to some extent.

Top 20 investments in August compared with Top 20 in July.

It is possible the NTA can change month to month without the mangers doing a thing. Other buyers/sellers of the holdings could be doing the work on changing values.

 

[kenny]

One of the best aspects of Mirrabooka IMO is that they don't have the copycat portfolio of Big Banks & miners and a sprinkling of "speccies" to generate alpha and justify their management fees. The promise is MIR aims to do this whilst behaving like one of those old school LIC's in their treatment of sharehodlers (sic).

 

[Belli]

It'd be nice if I could buy stack loads of them again around the $1 mark not long after they listed. $1.03, $1, $1.32. Thems were good times. Still, I cannot complain really when it's throwing five figure amounts into the bank accounts.

 

[Belli]

Mmm, nice lift off (from AFI )View attachment 131096

From ARB thread. I remembered MIR was to hold its meeting today and also held ARB. This is a screen shot of part of the presentation. Both AFI and MIR look like they both bought ARB around the same time.

 

[divs4ever]

interesting ,

it probably won't sway me into buying into MIR

but it would be interesting to see if some other LICs would provide a similar chart of their top 20 holdings

fancy spotting EQT before 2007 , and ALQ circa 2018 would have been a bold move as well , well done management

cheers

 

[Dona Ferentes]

MIR six monthly report out. More of the same. Paying a 3.5c ff dividend. Performance satisfactory, above benchmarks.

Portfolio Changes
We have continued to assess the medium to long term earnings outlook for companies under our investment consideration. In recent times, we have been factoring in an increasing interest rate outlook in assessing the appropriate valuation to apply to these earnings.
This valuation focus saw us exit Xero, which is now a 50 Leader Index stock, as well as reducing our very successful investments in Objective Corporation and ARB Corporation. Qube Holdings and Tassal Group were the other material sales, both positions exited after long holding periods, as we view their prospects for growth as having matured.

Several new positions were initiated during the half year:

• Computershare was reintroduced into the portfolio in the early months of the financial year, before market interest rate expectations began to increase. It is a high-quality business that is relatively mature, but we felt that the market was mispricing the very significant benefit that even modestly higher interest rates would have on its earnings.
• JB Hi-Fi was purchased as we felt that a short term market focus on a likely moderation in sales was providing an attractive opportunity to purchase the market leader in the home electronics category, where product innovation continues to provide a long term spending tailwind.
• Peet was an existing small holding, that we added to, as we view its residential landbank as being undervalued by the market.
• We also participated in the Lark Distilling Co capital raising, which supported its purchase of strategically important whisky distillery assets in Tasmania.

Other smaller additions were Santos (as a result of the merger with Oil Search) , Bapcor, Deterra Royalties. Worley. IPD Group plus The Environmental Group

 

[Belli]

Dividend sourced from capital gains. Pre-tax attributable gain is 5c. Tax deduction available for many investors as a result.

 

[Dona Ferentes]

Dividend sourced from capital gains. Pre-tax attributable gain is 5c. Tax deduction available for many investors as a result.

Almost wish I held in my own name, not the SMSF!!


Combining the commentary;

In an environment where interest rates have been very low and economic activity has recovered strongly from the COVID-19 pandemic, our investment considerations are factoring in higher interest rates and increasing costs over the medium term. As such, pricing power has been a particular focus in our assessment of the quality of a company and its position in the portfolio,

with the outlook;

Elevated valuations following the strength of recent share price performance to the end of December of several large Mirrabooka portfolio holdings provides a potential headwind to short term portfolio performance,

I suspect we're in for some sideways performance, in 2022. Dividend should stay at current settings.

 

[Belli]

Almost wish I held in my own name, not the SMSF!!

LOL. MIR is in my personal holdings as well as in the SMSF but yeah. I personally hold the same LICs/ETFs as the SMSF but not in the same proportions though.

 

[Dona Ferentes]

and MIR keeping the market informed, as did AFI

The recent fall in markets through January 2022 has meant Mirrabooka’s Net Tangible Asset Backing per share (NTA) has fallen by approximately 10% since 31 December 2021. The NTA at 31 December 2021 was $3.73 per share (before tax).

and now, ex dividend on the 24 Jan, the shareprice is travelling higher than any calculated fair value based on NTA. back of envelope, ($3.73 - 37c - 4c) takes it to $3.33, while shares are changing hands at $3.80 today....

 

[Dona Ferentes]

Review out:
Management Expense Ratio (Annualised)... 0.41% ................. 0.46% in 2020
Total Portfolio (Inc. Cash) at 31 Dec .............$667.9m ............... $511.9 million in 2020

also noticed one new holding (other smaller additions were Santos ,<as a result of the merger with Oil Search> , Bapcor, Deterra Royalties. Worley. IPD Group plus The Environmental Group ) being $500K in ATA Atturra, which listed late Dec

 

[Dona Ferentes]

Mirrabooka Investments Limited Share Purchase Plan

Directors have decided to make an offer to shareholders under a Share Purchase Plan (SPP) to raise additional equity for investment purposes.

• Subject to other participation requirements, shareholders with a registered address in Australia and New Zealand on the register at 7.00pm (AEDT) on Wednesday 2 March 2022 will be able to invest up to A$30,000 in the Company’s shares.
• The shares issued under the SPP will be eligible for fifty per cent of the final dividend that may be declared in respect of the financial year ending 30 June 2022. As a result, shares issued under the SPP will trade under a separate ASX code: MIRNB. These shares will trade under the normal ASX code: MIR after existing ordinary shares go ex the entitlement to the final dividend in July 2022.
• The SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to the volume-weighted average price of Mirrabooka shares traded on the Australian Securities Exchange (ASX) and Cboe Australia automated trading systems over the 5 ASX trading days up to and including the day on which the SPP is scheduled to close (4 April 2022), rounded down to the nearest cent. Therefore, the maximum price that eligible shareholders will pay is $3.18 per New Share, which was calculated by applying a 10% discount to the volume weighted average price of shares traded on the ASX and Cboe Australia automated trading systems over the 5 ASX trading days from 25 February to 3 March 2022 inclusive.
• Mirrabooka will announce the final issue price for the SPP after the offer closes.
• Directors retain the right to scale back the Plan.
• Mailed to shareholders on Friday 11 March 2022.
• Proposed that applications will close on Monday 4 April 2022

 

[Dona Ferentes]

Mirrabooka Investments Limited Share Purchase Plan

...The SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to the volume weighted average price of Mirrabooka shares traded ...

this seems to be the standard reaction to listed price of any company raising capital, to have selling down to the new offer price, and how very quickly it seems to fall!! Closed at 3.17 (admittedly on a bad day and a bad week, with Ukraine unravelling)

In the case of MIR, the reality is the share price had been above the NTA (last published at $3.11 for end-Feb) so there could be an argument there is even more capacity to fall, but how does that explain the trading above $4 only recently. Admittedly on low volume, and before the ex dividend event.

It makes it hard to want to add to a holding any other way, if the likelihood of a capital raising is going to see that earlier invested capital under water.

 

[Dona Ferentes]

MIR update (shareholder meeting) about to start. 1:30

noticed they have sold out of Lark , SuperLoop, picked up IPD and EGL

 

[Belli]

MIR update (shareholder meeting) about to start. 1:30

noticed they have sold out of Lark , SuperLoop, picked up IPD and EGL

I also notice MIR also sold Deterra Royalties which was first mentioned as being held in Feb this year. Interesting the MER has come down from 1.2% in 2003 to 0.41% now. No idea what the portfolio size was in 2003 but it does give an indication to favour those LICs with relatively fixed overheads as the greater the portfolio the less the MER can be.

 

[Dona Ferentes]

 

[sptrawler]

Interesting that MIR were $3.70ish in Sept 2021 and now are $3.30ish, when the market has been fairly bouyant @Dona Ferentes ?

 

[Dona Ferentes]

Interesting that MIR were $3.70ish in Sept 2021 and now are $3.30ish, when the market has been fairly bouyant @Dona Ferentes ?

SPP launched. ... with attractive pricing mechanism (Priced at the lower of $3.18 ora 10% discount to the volume-weighted average price of Mirrabooka shares over the 5 ASX trading days up to and including the day on which the SPP is scheduled to close (4 April 2022).)

also it was well over NTA (slide 12 ....some 10+%)

 

[sptrawler]

SPP launched. ... with attractive pricing mechanism (Priced at the lower of $3.18 ora 10% discount to the volume-weighted average price of Mirrabooka shares over the 5 ASX trading days up to and including the day on which the SPP is scheduled to close (4 April 2022).)

also it was well over NTA (slide 12 ....some 10+%)

Thanks for that Dona, I think I will be adding them to my LIC holdings.