MXG - Multiplex Group

[stockGURU]

Re: MXG looks strong

MXG has been hammered this morning and I'm not sure if it's because of the announcement yesterday afternoon regarding the $1 billion CMBS issue or the annoucement this morning regarding the sale of their interest in the White City project in the U.K.

Currently at $3.38.

Anyone got any comments?

 

[stockGURU]

Re: MXG looks strong

ahhh, ok. Now it's becoming clearer. This is part of the annoucement this morning. Sounds a little ominous. Hmmm.

The extent of any impact of this transaction on Multiplex Group’s full year 2005 accounts needs to be considered in
conjunction with accounting for the Duelguide transaction as a whole. Multiplex is planning to announce updated forecast
guidance for the full year 2005 accounts around 31 May 2005, by which time all areas of the Groups activities including the
impact of the Duelguide acquisition will have been reviewed. If it becomes practicable to provide earnings guidance prior to
that date Multiplex will do so.

 

[markrmau]

Re: MXG looks strong

I don't hold this one but look for MRE's comments:

http://au.biz.yahoo.com/050518/18/4ghc.html

"At 0600 GMT, Multiplex had partially recovered from its 15% fall to be down 44 cents or 12.2% at A$3.17 on volume of 18.9 million shares. It had earlier plunged 19% to record low of A$2.93.


In a note to clients, Macquarie Research Equities said the "market is currently critical of nearly every move that Multiplex makes" but the sale of the stake in White City, a shopping center development in West London, is a positive, strategic move.


Multiplex is forfeiting a potential profit in 2009 for the certainty of a profit this year, Macquarie said.


"The sale further focuses the development business upon the range of opportunities it has within its control in the U.K," Macquarie added.


Multiplex said its profit on the sale of the White City stake will be around GBP10 million.

 

[stockGURU]

Re: MXG looks strong

MXG have made another announcement this afternoon in response to their share price savaging today. Interesting stuff.

We refer to the announcement made earlier today concerning the sale of Multiplex Group’s (“the Group’s”) minority interest
in the UK White City shopping centre project, and to subsequent unfounded market speculation regarding the Group’s
solvency and the possible involvement of the Group’s financiers in this and other recent asset sales.

As noted in our earlier announcement, the Group’s decision to sell its effective 12.5% minority interest in this asset to
Westfield is consistent with a preference not to hold small minority equity interests in assets without some form of
accompanying asset or property management role. In conjunction with the decision of our co-owner (Aldersgate) to sell its
interest in the White City project, the Group determined that the capital tied up in this investment (which is not scheduled for
completion until late 2007) could be better deployed into other activities within the Group.

The Group continues to have substantial cash at hand, and today has available to it undrawn debt lines in excess of $400
million. This position will be further improved upon the implementation of the Group’s long term debt structure for the
Multiplex Property Trust (“the Trust”), which is anticipated to complete on Friday. A component of this is the $1.0 billion
CMBS program which was launched, priced and announced yesterday and is also due for settlement on Friday. This is the
largest such program ever undertaken in Australia, and the Group believes its average margin over 3 month BBSW of
0.334% is an accurate reflection of the high quality of its investment portfolio. The majority of this debt was rated AAA (or
equivalent) by Standard & Poor’s, Moody’s and Fitch Ratings.

The restructuring of the Trust’s facilities was first identified as an opportunity for the Group over 9 months ago. This initiative
was developed and implemented by the Group to provide long tenor, low cost debt commensurate with its peer group in the
LPT sector. This initiative has been well supported by the Group’s core bankers, who have been instrumental in assisting
the Group through this process and continue to provide substantial credit facilities to the Group. We note the Group
maintains excellent relationships with all of its bankers.

Further, we refer to the announcement made on 7 April 2005 in which the market was advised that the Group’s peak gearing,
following completion of the Southern Cross project and further investment into development projects, was forecast to be
below 33%. This forecast position remains unchanged.

 

[AKH]

Re: MXG looks strong

I'm guessing there has been an over-reaction, but I wouldn't put money on it until I can see the early stages of some positive price movement.

Citigroup rate it as a buy with a target of $4.14 (today $3.150 - $3.310), while UBS agree but have a target of $3.60.

 

[ob1kenobi]

Re: MXG looks strong

AU:MXG Multiplex Group 5/19/2005 4:05 PM

NAV: 3.23 Change: 0.07 Offer: 3.31 Yield: 4.20

Percent Change: 2.22% 52 Week Range: 2.93 to 6.15

Company Data

Company Name: Multiplex Group

Dow Jones Industry: Not Available

Exchange: Sydney ASX

Shares Outstanding: 837,402,185

Market Cap: 2.7 Billion

Short Interest: Exchange provides no short interest data.

52-Week EPS: 0.096

52-Week High: 6.15 on Tuesday, February 01, 2005

52-Week Low: 2.93 on Tuesday, May 17, 2005

P/E Ratio: 33.65

Yield: 4.20%

Average Price: 3.89 (50-day) 4.65 (200-day)

Average Volume: 3,864,700 (50-day) 3,511,100 (200-day)


Personally, the stats and the chart doesn't inspire confidence. The chart for the YTD has been on a negative gradient (trend line) for sometime and today's price puts it 40% below the all ords. There is a lot of volatility in this stock and its in an industry sector that is slowing courtesy of an almost universal tightening of monetry policy by the central banks. It will remain on my watch list for a while yet.

____________________________
This is merely my opinion and does not constitute financial advice. When considering your financial objectives, please consult a suitably qualified and licenced professional.

 

[stockGURU]

Re: MXG looks strong

Multiplex has downgraded it's FY2005 after tax profit to $170 million... significantly down from its forecast of $235 million.

Loss on the Wembley project is $109 million, and that's after the $50 million indemnity pledged by the Roberts family.

Looks like it's going to get hammered tomorrow.

:axt:

 

[DTM]

Re: MXG looks strong

Multiplex has downgraded it's FY2005 after tax profit to $170 million... significantly down from its forecast of $235 million.

Loss on the Wembley project is $109 million, and that's after the $50 million indemnity pledged by the Roberts family.

Looks like it's going to get hammered tomorrow.

:axt:

It took them all weekend to come with this figure??? Didn't they know it before or was creative accounting used??? Look out for contingent liabilities.

I've heard from people in the industry that its more like 200 million.

Could be just rumours, but be prepared for more bad news.

 

[jeremyviva]

MXG ,can it go up?

it reaches bottom at 2.53 today ..? it is beautiful lto see in the chart.
can it go up?

l am new... thanks for reply!!!!!!

 

[serp]

Re: MXG ,can it go up?

can it go up?

Yeah it can go up, but will it???

I was in a position to buy I'd maybe consider holding in for mid term to see if there are any gains to be had, but don't take that as advice! I am no way qualified for any kind of financial advice

I could see it going down more as well, depends how badly wembely stadium blows out, if they don't get that sucker finished on time I could see a knee jerk reaction from the market too.

However this is just all speculation what i'm saying.

 

[chansw]

Re: MXG looks strong

An article "Multiplex wins $389m Dubai job" from SMH (6 Dec 2005)

http://www.smh.com.au/news/business/multiplex-wins-389m-dubai-job/2005/12/05/1133631200642.html

 

[arlee123]

MXG, multiplex

hi guys, bought some shares in mxg last year when it was at a all time low with the wembley stadium delays and all that. however, one year now, the price is still pretty much the same as last year..
just wondering if anyone can give advice whether to let go or hold.

if let go,ie sell, then what shares do you recommend me to buy...dont mind risk...just wanna high return.

cheers

 

[Joe Blow]

Re: MXG, multiplex

hi guys, bought some shares in mxg last year when it was at a all time low with the wembley stadium delays and all that. however, one year now, the price is still pretty much the same as last year..
just wondering if anyone can give advice whether to let go or hold.

if let go,ie sell, then what shares do you recommend me to buy...dont mind risk...just wanna high return.

cheers

Arlee, Please do not ask for specific advice on what stocks to buy or sell on ASF as this is considered the provision of financial advice and by law only licensed financial advisors are allowed to provide this.

 

[arlee123]

Re: MXG, multiplex

Arlee, Please do not ask for specific advice on what stocks to buy or sell on ASF as this is considered the provision of financial advice and by law only licensed financial advisors are allowed to provide this.

k no worries

 

[ricee007]

So, bit over 3 years on..... Would it be wrong to use this thread to discuss MXUPA ?

If not, anyone else holding these little bad boys?