Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

2 Pages (Click to Jump) V   1 2 >   
 
  
Reply to this topic

MIR, MIRRABOOKA INVESTMENTS LIMITED
nipper
post Posted: Jan 14 2021, 10:11 AM
  Quote Post


Posts: 7,962
Thanks: 2652


and MIR out with the Half Yearly.

Reflective of the quality of the portfolio, Mirrabooka delivered a return for the 6 months to 31 December 2020, including the benefit of franking, of 33.0%. This was ahead of the Combined Small Ordinaries and Mid Cap 50 benchmark which was up 21.9%, including franking, over the same period. Over the 6-month period, the portfolio has benefitted from strong share price performance in some of our larger holdings such as Mainfreight, ARB Corporation, Objective Corporation, Reece, Net Wealth, HUB24 and Xero. For the 12 months to 31 December 2020, the relative returns were 29.2% for Mirrabooka and 13.8% for the benchmark, with both figures including the benefit of franking.


Diminished earnings from lower dividends and distributions, by nearly 30%. Managed to pay a 3.5c ff dividend, sourced from Capital Gains, including OptiComm (taken over; $2.00 in Aug '19 to $6.67 in Oct '20) and Premier PMV plus trimming a few high flyers, Hub24 and Objective Corp.
QUOTE

NIB, Superloop and Nanosonics were purchased through temporary price weakness and Nuix was added through an initial public offering. Corporate Travel, which was previously owned, has inevitably been caught up in impacts of the pandemic. However, we decided to re-enter the stock as it very effectively navigated the impacts of the crisis and made a well-timed acquisition in the US.
.

The Company also announces a Share Purchase Plan to raise up to $40 million, with a closing date for participation of 15th February 2021.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 14 2020, 10:29 AM
  Quote Post


Posts: 7,962
Thanks: 2652


Annual Results out:

Full Year Profit was $6.4 million compared with $8.9 million last year. The fall in profit was due primarily to a reduced contribution from investment income as companies reduced or suspended dividend payments. This fall was partially offset by an improved contribution from the Trading Portfolio.

The final dividend was maintained at 6.5 cents per share fully franked. Total fully franked ordinary dividends for the year are 10 cents per share. No special dividend has been paid or declared for this financial year.

I like to look what the portfolio adjustments are made during the year...
QUOTE
The extreme volatility and deteriorating economic outlook over the financial year saw Mirrabooka further consolidate its investment portfolio from 63 to 52 holdings. Tough calls were required on exiting some interesting early stage companies, as funds were required to buy higher quality companies that were also sold off heavily during the year and are better placed for the deteriorating economic outlook.

Much of our buying through the recent market correction came through discounted rights issues and placements, in total $20 million was invested in 13 share issues. Our largest participation was in raisings by Auckland International Airport, Atlas Arteria, InvoCare, Reece, NEXTDC, Oil Search and Qube Holdings. Other purchases in recent share price weakness included Netwealth, Realestate.com, Xero, Infomedia, Cleanaway Waste Management and Breville Group, all of which are quality businesses which have strong positions in their respective industries.


New companies bought during the ye
ar
Oil Search
Fineos Corporation
Cleanaway Waste Management
Temple and Webster
Auckland International Airport
OptiCom
Infomedia
Marketplacer (unlisted)
Pinnacle Investment Managment
CountPlus
REA Group
Plexure Group (NZX listed)
Premier Investments


Major sales were:
Wellcom Group (takeover) $10.182m
Lifestyle Communities $10.137m
Computershare $5.994m
Dulux Group (takeover) $5.730m
TPG Telecom $5.047m

As stated, total number of holdings down from 63 to 53. With 11 additions, then there will be a culling of nearly 2 dozen smaller holdings of what they term interesting early stage companies



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 11 2019, 09:50 AM
  Quote Post


Posts: 7,962
Thanks: 2652


QUOTE
The surge of money flying into the sharemarket has been “phenomenal to watch” over the past few months, says Mirrabooka’s Mark Freeman, but the risk now is that a slowing economy could put the brakes on company earnings at a time when valuations are looking “full”.

“The market has been absorbing a huge amount of cash from people wanting yield; that’s been the predominant trade. The question now is with multiples the way they are, and concerns about falling interest rates and a slowing economy, are we ultimately going to have weak earnings coming out of companies? … There might be some share price adjustments if earnings or outlooks don’t meet expectations. That’s the risk we’re in at the moment,” Mr Freeman told The Australian.

Mr Freeman, who is managing director of the $412 million listed investment company, said he was concerned about the high multiples some companies were trading on.

“AfterPay, Wisetech, Appen .... they’re all good companies but it’s been a long time since I’ve seen PEs this high. They’re good companies but is the risk/reward there? “These companies will have to come through with very good profit results to justify their high PEs. And that’s not the companies’ fault, it’s just where the money’s been flowing,” he said.

Amid the widespread push into the sharemarket as interest rates track lower, Mirrabooka, which invests in small to medium stocks outside the S&P/ASX 50 Leaders Index, is waiting and watching from the sidelines.

“We’re definitely more cautious now. Definitely,” he said. “It feels a bit like money chasing assets. And you always want to be cautious when money’s chasing assets rather than assets chasing money.”

All that cash had also left fund managers unsure how best to view the market, Mr Freeman said. “If you look across the market in terms of price/equity ratios, they’re all very, very high by historical standards. They’re quite huge. But if you look at the yield on the market, compared to interest rates, the market actually looks quite cheap,” he said. “So, you’ve got this conundrum, and this is what fund managers are grappling with: do I look at the market in terms of yield or look at in terms of price/earnings ratios.”

Mirrabooka yesterday posted a 14 per cent slide in profit for the year, driven by a smaller contribution from its trading and options portfolios. This was because of a lack of opportunities, Mr Freeman said. Instead, the LIC focused on “improving the quality” of its core investment portfolio. The largest purchases for the year were James Hardie, which Mr Freeman said he bought on the dip that pushed it out of the top 50, and Reliance Worldwide, which was “disappointing”.

“I still think they’ve got a strong growth opportunity in their push-to-connect [fittings] but clearly there was a downgrade along the way. Perhaps there’s a bit more cyclicality to the business than the market thought but I still think it’s a sound business over the long term. So we’re just holding it,” he said.

Commenting on the falling cash rate, Mr Freeman said the market didn’t necessarily understand why the RBA pulled the trigger on back-to-back cuts. “I think a lot of the market’s saying ‘we’re not really seeing why there was such a need for it now’. So what are the [RBA] seeing that we’re not quite seeing? Perhaps we need to be concerned with that.”

In terms of investments he’s looking at for Mirrabooka, Mr Freeman said he was being selective and patient. “Stocks are really getting pummelled if they announce a downgrade, so that’s why we think we can be patient,” he said.




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 10 2019, 10:01 AM
  Quote Post


Posts: 7,962
Thanks: 2652


In Reply To: nipper's post @ Jul 10 2019, 09:50 AM

Mirrabooka’s total investment exposure by sector is as below:
............................. 2019....... 2018
Energy ................... 2.75%...... 3.02%
Materials................. 13.67%.... 11.26%
Industrials............... 22.52%.... 14.67%
Consumer Discret.... 11.86%.... 16.78%
Consumer Staples..... 3.55%.... 6.94%
Healthcare............... 6.17%.... 6.91%
Financials................ 8.34%... 13.31%
Real Estate............. 2.98%...... 4.54%
IT & Telecoms........ 20.43%.... 15.71%
Cash...................... 7.73% ...... 6.86%

There was one security representing over 5% of the investment portfolio at 30 June 2019 - Mainfreight (5.4%)



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 10 2019, 09:50 AM
  Quote Post


Posts: 7,962
Thanks: 2652


QUOTE
The final dividend of 6.5 cents per share fully franked, the same as last year, will be paid on 12 August 2019 to shareholders on the register on 26 July 2019. Shares are expected to trade exdividend from 25 July 2019. There is no conduit foreign income component of the dividend.

Some 4.5 cents of the final 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 6.43 cents.

QUOTE
Over the 12 month period there was significant disparity of returns across different sectors and stocks within the market in which Mirrabooka invests. For example, companies such as Afterpay Touch, Altium, Appen, WiseTech Global and Xero, drove a significant part of the Small Industrials return. Mirrabooka currently has modest holdings in Afterpay Touch and Xero.

In considering the investment opportunities over the period, Mirrabooka did not chase the most exciting perceived growth opportunities in the current market. This was not considered as the best use of available cash, as this may see exposure to a significant loss of capital in the future if these growth prospects decline. Mirrabooka instead furthered its focus on quality companies with proven business models and strong market positions.

In this context, the largest purchases in the portfolio were in companies such as James Hardie Industries and Reliance Worldwide, both of which saw reduced share prices through the period because of near term cyclical concerns, but in our view still provide good long term prospects for above average growth. Atlas Arteria and two New Zealand listed companies, Freightways and NZX, were also added, as these holdings provide exposure to businesses with strong market positions and growing dividend streams in a low interest rate environment. The other major purchase for the period was OZ Minerals, which is attractive because of changes under new management and the number of quality projects it has for growth.

Major sales included the complete disposal of Washington H. Soul Pattinson, Navitas (which was subject to a takeover offer at the time), Challenger and CYBG (Clydesdale Bank), with these last two companies being disappointing performers in the portfolio. There was also a reduction of the position in Lifestyle Communities which continues to be a large holding in the portfolio.

In total, the number of holdings in the Investment Portfolio fell from 71 to 63 over the year, reflecting a greater focus on holding quality companies in a more uncertain environment.
Mirrabooka’s 12 month portfolio return including franking was 5.9%; the combined Small and Mid-Cap benchmark return, including franking, was 3.8%.

new companies : James Hardie Industries, Fleetwood, Atlas Arteria, WorleyParsons, Freightways, Afterpay Touch Group, OZ Minerals, Audinate Group, NZX, Sims Metal Management, PKS Holdings




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: May 29 2019, 11:05 AM
  Quote Post


Posts: 7,962
Thanks: 2652


at nearly 5% of assets under management and #1 holding, Mainfreight, a NZ listed corporation, has been a star performer for Mirrabooka. One of the advantages of a regional focus, for both the company and the LIC. (Qube is at #2 and long, long ago, they did well with Toll.... a theme here?)
QUOTE
Kiwi freight giant, Mainfreight has reported record revenue and earnings for the year to March 31. Mainfreight said on Tuesday annual profit of $NZ141 million ($A132.5 million) was the best ever recorded, while revenues rose nearly 13% to $NZ2.954 billion ($A2.44 billion) a jump of more than $NZ337 million. The company rewarded shareholders with a near 25% jump in total dividends for the March year of 56 NZ cents, up 11 cents with a final of 34 cents a share.

CEO Don Braid said in yesterday’s release Mainfreight had expanded into New Zealand regions never serviced before and additional regional branches were in the final stages of planning, for opening in coming weeks and months. The New Zealand operations achieved revenue of $718 million up 7.9%.

The Australian business did much better – revenues up 13.9% to $A710.17 million ($A752 million). The new branch location for Transport was opened in Toowoomba (having been delayed), and the Geelong branch moved to a new facility. Plans are underway for additional domestic freight facilities in Sydney and on Queensland’s Sunshine Coast. Construction of our new Adelaide facility is expected to commence in late 2019. For the Logistics business, four new warehouses were opened with an additional AU$12 million of new business. Our standing in the premium beverage sector continues to grow.

“New warehouse business has, in turn, flowed into domestic freight tonnage. Additional warehousing capacity is planned in the coming year for Brisbane, Sydney, Melbourne and Perth, including purpose-designed capacity to aid warehousing of retail dangerous goods, which will be complemented by our specialist dangerous goods transport business, ChemCouriers. "Our Air & Ocean business improved both its sales growth and profitability over the prior year, with a strong emphasis on export related growth, particularly in the perishable airfreight sector. As with the balance of our Air & Ocean network globally, there is an emphasis on the development of LCL (less than Container Load) consolidation activity,” the company said.

In Europe revenue rose to EU€376.28 million up 12.0% while in the US revenue jumped 13.5% to US$493.86 million.
- theie distinctive if rather old-school logo blue/ white trucks are frequently seen on the Hume Hwy!



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 


nipper
post Posted: Jan 15 2019, 11:53 AM
  Quote Post


Posts: 7,962
Thanks: 2652


In Reply To: nipper's post @ Jan 15 2019, 08:59 AM

Acquisitions in the last 6 months - Mirrabooka has been able to take advantage of the recent market volatility as many good quality companies are now trading back at fair value. Whilst volatility is likely to persist, our experience suggests the highest quality stocks only rarely sell off significantly further once they represent fair value.
James Hardie Industries ..$9,2mill
Atlas Arteria ....................$6,1mill
OZ Minerals ....................$4,6mill
Reliance Worldwide ........$4,3mill
Adelaide Brighton........... $3,7mill
Fleetwood Corp. ............ $3,1mill
and also added WorleyParsons, AfterPay Touch Group, Audinate Group, Sims Metal Management in smaller amounts

Sales - MIR took the opportunity to trim or sell completely some holdings, particularly where excessive valuations made the investment case more challenging
Washington H. Soul Patts# ...$9,3mill
ClearView Wealth# ................$4,8mill
ResMed .........................$3,9mill
Iluka Resources .............$3,2mill
Altium#........................... $3,2mill
Perpetual .......................$3,0mill
#complete disposal



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: crooky  
 
nipper
post Posted: Jan 15 2019, 08:59 AM
  Quote Post


Posts: 7,962
Thanks: 2652


Announced 3.5c dividend FF plus 10c special dividend ff.

The board considers it prudent in light of policy uncertainty. Take that, Bowen and Shorten.

I suspect other LICs that have capacity will do similar.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 17 2018, 07:09 AM
  Quote Post


Posts: 7,962
Thanks: 2652


QUOTE
Small and mid-cap fund manager Mirrabooka Investments is sitting on the sidelines as it navigates the stretched valuations at the smaller end of the market, but says the coming reporting season may present some buying opportunities.

"Some of the multiples we're seeing in this part of the market are certainly elevated against historical levels. We're holding 10 per cent cash at the moment, which is quite high for us. We can find plenty of good companies; we're just struggling a little bit with values," managing director Mark Freeman told The Australian.

"So we're going into this reporting season a little bit cashed-up, but every reporting season we usually find there's a couple of stocks we end up liking."
http://www.theaustralian.com.au/business/c...a38b667b4d86b59

Over the year, new companies added to the portfolio included Boral, Webjet, Adelaide Brighton, Dulux Group and Breville Group, and added to its holdings in number of existing stocks with CYBG the largest of these (and Syrah).

Major sales included Treasury Wine Estates which had become very large in the portfolio and is now a top 50 company, Programmed Maintenance which was taken over, and a reduction of positions in Japara Healthcare and TPG Telecom. Holdings in Australian Agriculture Company, OFX Group and Isentia Group were sold completely.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 12 2017, 10:20 PM
  Quote Post


Posts: 7,962
Thanks: 2652


Small cap specialist fund manager Mirrabooka Investments has taken advantage of the government's new lower corporate tax rate by increasing the amount of money it shells out to shareholders. It has become one of the first listed Australian companies to frank its shareholder payouts at the government's new lower corporate tax rate of 27.5 per cent, which the Turnbull Government passed into law earlier this calendar year.

"The directors have taken this new rate into consideration when setting the dividend," Mirrabooka managing director Ross Barker said. Mirrabooka will pay a special 4c per share dividend, along with holding its final payout steady at 6.5c. That brings the full-year payout to 14c per share...................

Over the year, Mirrabooka consolidated a number of its shareholdings. The largest purchase was in media group iSentia, while the group took on new holdings in Computershare, Carsales, Clydesdale Bank and Macquarie Telecom Group.

The group sold shares in a number of companies which were the subject of mergers, or where groups grew large enough to enter the ASX50 largest listed stocks or "where in our opinion a company had become more risky because of overly high share prices or a negative change in outlook," Mr Barker said. incl Treasury Wine Estates, ASG Group(takeover), Cover-More Group (takeover), AMA Group , Citadel, Vocus, Caltex, Ardent Leisure and CSG.

Mr Barker said it was "interesting" that there was an absence of new floats onto the markets, particularly through the second half of the financial year". "Mirrabooka has not been a large participant in this market but nevertheless this meant there was little opportunity to consider new investments from this area of the market," he said.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


2 Pages (Click to Jump) V   1 2 >

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING