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DXS - Dexus Property Trust

Discussion in 'Stocks 0-H' started by bowman, May 4, 2009.

  1. nulla nulla

    nulla nulla Positive Expectancy

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    Sometimes it comes back to "where you see it going". The insto's snapped up the discounted allocation at $7.32. The market then pushed the market price down to this level, however demand pushed the share price back up. At one point you could have picked up a full $15,000 worth at a market price of $7.28 and been ahead of the spp offer including brokerage.

    Personally I will be applying for the $15,000 allocation and hope they decide to fill all bids. $7.32 for a share that was recently $8.00+ with prospects of future growth seems like a reasonable investment.
     
  2. nulla nulla

    nulla nulla Positive Expectancy

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    Dexus jumped almost 3% yesterday to close at an inter-day high of $7.81. This is pretty good for a share that did an institutional capital raising recently at $7.32 and is still in the process of raising further capital from retail shareholders entitled to participate, also at $7.32.

    dxs 2015-05-26.png

    No doubt participating retail share holders will hope that there is no scaling back and that Dexus elects to use all the take-up offers to further reduce debt and perhaps acquire a few more properties. Dexus is also due to announce a dividend of around $0.20 per share in the next four or so weeks. Hopefully, for holders, the potential Greek default, which saw the Dow Jones drop 1% overnight, won't wipe out all of yesterdays gains.
     
  3. nulla nulla

    nulla nulla Positive Expectancy

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    Looks like the shorters read the latest release and decided that it might be a good idea to close out their positions. It will be interesting to see whether Dexus can break through the resistance level of $7.88 or will get pushed back to the support levels of $7.05 ish.

    dxs 2015-10-23.png

    From memory Dexus did a 1 for 5 consolidation a while back in an effort to discourage the day traders and make the share more attractive to the big investors. This probably worked in respect of the big investors getting on the books but I suspect those evil day traders are happily trading the recent spreads.
     
  4. notting

    notting

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    And the shorters say. "Hail to the Lord, there is a God after all. Thank you thank you!"

    God look at the dividends over the last 12 months compared to the previous ~ priming the pump.

    DXS buying at the top? Me thinks so.
     
  5. skc

    skc Goldmember

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    80% script anyway so one overpriced paper for another...
     
  6. nulla nulla

    nulla nulla Positive Expectancy

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    Actually I think it is more like further consolidation within the A-REIT Sector. Most of the larger companies making up the sector know that they are takeover targets particularly with the low Australian Dollar, their low leverage levels and the yields they are generating. FDC and NVN merged (which has ended up looking like a NVN take over of FDC) to make VCX. Dexus expanded previously taking up a chunk of CPA, with GPT taking the balance and now Dexus has made a bid for IOF at the invitation of the independent IOF board members.

    IOF has been on the market for some time due to the majority share holder wanting to quit their holding. This has not stopped the share price fluctuating in value every time their is an overall rise or fall in the markets, however trading IOF has been tight as the parcels have been relatively small.

    Dexus would like be looking at picking up the whole property parcel then offloading non "A" grade holdings, bringing in equity partners for some properties, and retiring duplicate management. With both companies having low leverage rates their would be a lot of wriggle room in their financing without them losing the ability to maintain dividends etc.

    The figures in "nottings" quote must have been just after open when the announcement was released and both companies went into a trading halt. Dexus subsequently slid after re-open to close the day at $7.73 while IOF climbed to $4.15 before closing at $4.11. It is fairly normal for the share price of the bidder company to fall and the share price of the target company to go above the offer price. No doubt some investors pushed the price of IOF a little higher hoping someone like GPT would step in like they did when Dexus bid for CPA.

    Both companies were triggered as a buy on Friday when IOF hit $3.81 and Dexus hit $7.62. The return on the sale of IOF at $4.15 was $0.34 or 8.92% (I was originally targeting $3.91 for IOF until it went into the trading halt). I missed the opportunity to unload Dexus at $7.80 on re-open and the sale is still in the queue. If Dexus fall back to the low $7.60's I will top up.
     
  7. notting

    notting

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    It would have made more sense if it were an international banking on a higher AU in about 50 years time.

    As SKC points out is largely script bid so to all appearances seems less leveraged. However if the Chinese investment in new housing commission flats with lipstick continues to wain. Any further leverage in this sector at current levels is not going to have a happy ending.

    Not surprising they are all trying to sell themselves.
     
  8. nulla nulla

    nulla nulla Positive Expectancy

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    There hasn't been a lot of recent activity in this thread so I though it may be worthwhile throwing up a long term chart as well as a table comparing the share information over the past three or so years.

    dxs 2017-03-17 9yr.png

    Dexus Table.jpg


    Disclaimer: The table information is taken from the A-REIT Tables posted previously. Accordingly if there were any errors in those tables then they have been repeated in this table.
     
  9. dyna

    dyna

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    Yet another share placement.A biggie this time.Over a $A billion in 2 parts before June 30 and a last one,I think,in December,probably to beat Labor's Jan.2020 change to the current capital gains tax 50% discount.Instos filled their $900 Million book build in no time at all,this week.Another $50 mill(or more?) has been set aside for the mums and dads in an SPP.Once again,I'll be following the smart money .$15,000 max allowed.Terrific long term capital gain for patient shareholders,with this one and distribution growth is up over 5% for the year.And no need to worry about the future of franking credits,here.There ain't none.
     

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