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MMAC - MMA Capital Management


Bluedevilvalue

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MMAC is a niche asset manager that trades for 70% of book value. They have significant NOLs, a large cash position, and a

compelling strategic relationship. They also have very high insider ownership and there have been recent insider purchases.

 

FWIW, Clark street value, Arquitos and Alluvial all have a substantial position in it.

 

Anybody following?

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  • 1 month later...

Guess we should switch the thread to this one, not sure if Olmstead is still active on this site to change the old thread name -

 

BVPS 36.20

 

https://mmacapitalholdings.investorroom.com/2019-03-13-MMA-Capital-Holdings-Announces-Full-Year-2018-Financial-Results

 

Conference call tomorrow morning

 

pdf 10K link: http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=12777474&type=PDF&symbol=MMAC&companyName=MMA+Capital+Holdings+Inc.&formType=10-K&dateFiled=2019-03-14&cik=0001003201

 

On March 13, 2018, the Board authorized a 2018 share repurchase program (“2018 Plan”) for the repurchase of up to 125,000 common shares, at a maximum price of $30.00 per share. The Company then adopted a Rule 10b5‐1 plan implementing the Board’s authorization. On August 7, 2018, the Board amended the 2018 Plan to increase (i) the total shares authorized for repurchase to 187,500 and (ii) the maximum authorized share repurchase price per share to $31.50. On

November 6, 2018, the Board authorized the amendment of the 2018 Plan to increase (i) the total shares authorized for repurchase to 218,750 and (ii) the maximum authorized share repurchase price per share to $32.96, which represented the Company’s diluted common shareholders’ equity at September 30, 2018. During 2018, the Company purchased 218,750 common shares at an average price of $27.08. The 2018 Plan expired on December 31, 2018.

On March 9, 2018, the Company issued 125,000 common shares to Hunt for $4.1 million, representing a price per share of $33.00. On June 26, 2018, the Company issued an additional 125,000 shares to Hunt for $4.3 million, or $34.00 per share.

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  • 2 weeks later...
  • 1 year later...

I'd be more concerned if he was leaving the board of directors.

 

Adjusted book is $37.37. Let's say another 10% of the assets are permanently impaired just to be safe, even though the solar loans all look money good, and that will take you down to $33.63. Then let's discount another 10% for being externally managed and we get $30.27 as a conservative fair value that grows 12-15% a year as the solar business keeps rolling along.  Today's quote of $23.39 looks pretty attractive.  Heads you win, tales the discount temporarily goes to 50%.  Just how big a discount do you want?

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I'd be more concerned if he was leaving the board of directors.

 

Adjusted book is $37.37. Let's say another 10% of the assets are permanently impaired just to be safe, even though the solar loans all look money good, and that will take you down to $33.63. Then let's discount another 10% for being externally managed and we get $30.27 as a conservative fair value that grows 12-15% a year as the solar business keeps rolling along.  Today's quote of $23.39 looks pretty attractive.  Heads you win, tales the discount temporarily goes to 50%.  Just how big a discount do you want?

 

You need more than a 10% discount to compensate for being externally managed. I personally avoid anything externally managed at all. Also, the business model reminds me of BDC which is another area littered with dead bodies.

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  • 7 months later...
27 minutes ago, ValueMaven said:

what the heck happened here and why is down -35% over the last month??  

Read the 10-k. Actually 2020 itself was OK but subsequently they lost ~$4/share related to the ERCOT/ Texas disaster.

I don’t really think this business model works and the structure (external management) sucks. No dividends or share buybacks either, so the capital is stuck.

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  • 1 month later...

I think it is so unfortunate for small shareholders, just because the stock traded at 17$ doesnt mean it was worth 17$, The book value is much higher then even the takeout price. Not that this is new, We have seen buyouts before when the price crashes (BPY is another recent example), but it would be great if we could do something about it.

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I for one am happy to get the hell out of this one. The management of this company has been abysmal to say the least, this has become apparent especially this past year, the risk management has been poor, over-concentration in solar assets in one state set them up for the ERCOT disaster, the leverage added to the woes, the external manager managed to maximize fees and not for shareholder value addition. So the market price started to reflect the abysmal management and so the opportunist struck. They had capital, wanted a framework to deploy it and found one selling for 50c on the dollar and were able to negotiate a take out for 80c on the dollar. To me that is not a great price but unless an activist is willing to take this on and throw out the current management on shareholders behalf, this is as good as can be had. Luckily for me, I entered at 28, I then averaged down at 22 and was agonizing at 16, so I got to exit with a small profit. 

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11 hours ago, Txvestor said:

I for one am happy to get the hell out of this one. The management of this company has been abysmal to say the least, this has become apparent especially this past year, the risk management has been poor, over-concentration in solar assets in one state set them up for the ERCOT disaster, the leverage added to the woes, the external manager managed to maximize fees and not for shareholder value addition. So the market price started to reflect the abysmal management and so the opportunist struck. They had capital, wanted a framework to deploy it and found one selling for 50c on the dollar and were able to negotiate a take out for 80c on the dollar. To me that is not a great price but unless an activist is willing to take this on and throw out the current management on shareholders behalf, this is as good as can be had. Luckily for me, I entered at 28, I then averaged down at 22 and was agonizing at 16, so I got to exit with a small profit. 

Amen. I'm in almost exact same position - averaged the position down to $22 and happy to exit a bit of a sore spot with a profit. Not gonna complain about it!

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