MMAB - MuniMae, LLC

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Well one rabbit that works pretty reliably is repurchasing your own shares way below book value per share, further increasing BVPS without actually having to create any wealth the "hard way."  But it takes an accurate understanding that your BVPS is actually money good!  (and your stock has to stay available at those prices long enough to keep doing it)

 

<By the way, Libs, are you "libertarians_2000" from back in the day?>

 

Yessir. I've always appreciated your insights and wit, GFP, and am glad to have found you here.

 

Re MMAC, I found this really compelling a few years ago; I bought and quickly doubled up when the price / BV gap closed. Then I stupidly sold, thinking it was played out, at around $15.

 

It's still tempting, but I just don't quite get how they keep pulling these rabbits out of their hat to increase BV over and over again. And I don't know enough about their business to understand just how risky that debt service number

( 1.1X) is.

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Well I was high in my estimate of book value per share when I said 'over 34' - they reported $32.96 per diluted share.

 

I had neglected to notice the Hunt transaction would be recognized int he 4th quarter, looking like at least $35.31(+) BVPS for the 4th Quarter

 

https://www.sec.gov/Archives/edgar/data/1003201/000114420418058816/tv504548_10q.htm

 

https://mmacapitalmanagement.investorroom.com/2018-11-09-MMA-Capital-Management-Announces-Third-Quarter-Results-and-Investor-Conference-Call

 

"In addition, the Board approved an extension of the 2018 buyback program earlier this week by 31,250 shares, which increased the total amount of authorized shares to be repurchased to 218,750 shares, as well as increased the maximum price to be paid to $32.96 per share.  The Company has purchased 187,500 shares year-to-date at an average price of $27.25 per share. Historically, share buybacks have been accretive and, therefore, have helped drive growth in Book Value per share.  On a cumulative basis over the past six years, we have bought back over 3.2 million shares at an average price of approximately $13.51.  We may continue using buybacks to be opportunistic in periods of significant disconnect between our Book Value per share and trading price, similar to today's environment, but the long-term sustainability of the Company will continue to be driven by our future investments in real estate and infrastructure, particularly in renewable energy, as we focus on growing the business in the coming years."

 

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Bizarre open on MMAC this morning.  Got a few shares in the dump, but can't really see a catalyst for the open.  They just reincorporated as a corp, no longer an LLC.  Seems odd to dump a market order on an illiquid stock at the open

 

Anyone know something that explains the drop?