Immofinanz: increased price target on
The prices of our 2017er Immofinanz convertible bonds (A0TMMN WKN, Symbol IMOB ISIN XS0332046043) with 96.75% have again reached a new annual high. Our 2017er bonds with an option to buy back through estate finance at a price of 113.47% in November 2012 have described to date nor a return of 8.51% pa
Like last week, we can well imagine that Immofinanz is currently active in the market and buys back bonds . The 2014er Bonds, which may be tendered in January 2012 at a rate of 100% estate finance are currently traded at 93.90%. This represents a yield of 7.35% pa, so a lot less than the 2017ern. This is quite remarkable because in the event of a successful eradication of 2014er Bonds at the beginning of the year 2012, 2017er Bonds should note at rates of 105-110% and thus have the 2014er substantially less income potential than the 2017er Bonds.
extent now, most investors would rather not 2014er 2017er and Bonds. The 2014er Bonds are wider market with 675 million € last still outstanding nominal 2017er than the € 230 million volume. If the Bond 2014er 2017er compared to Bond 'obviously too expensive', some investors will sell more 2014er Bond. Therefore, it would only be for a strategic buyer - now makes sense to the more liquid 2014er high and provide for the (attractive but illiquid) 2017er not as high - as real estate finance.
Immofinanz was last publishes cash reserves of about half a billion euros and it makes much more sense to buy its own bonds, as the money for less than 1% interest per annum to park in a bank account.
We are convinced that we see in the coming months, a corresponding (positive) message from the company be. This should then have a positive impact on bond prices (and shares), as the purchases get below par an extraordinary gain. Due to the expected price rise in the bonds it would make sense for real estate finance and to keep secret such purchases as long as possible in order to continue to grow on.
Since the model portfolio recording in February 2009 when we borrowed from 18.70% in the model portfolio shots and saw the light of the then very difficult situation of the company a price target of 40%, a lot has changed. While there was early 2009, a significant risk of insolvency, that is, in our view no longer exists. We therefore raise our target price from today least 100% once in, namely 105%. This course is equivalent to a current yield of 4.64% pa or a still very high premium of approximately 360 basis points on a bond of € 2012er Austria.
Source: http://www.derspekulant.ch/
Current price already 98%! Today after the market close, it is also the preliminary results 2009-10. Perhaps it clear whether the company is currently buying back bonds.
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