Author Topic: MMAB - MuniMae, LLC  (Read 18679 times)

globalfinancepartners

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Libs

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Re: MMAB - MuniMae, LLC
« Reply #21 on: November 08, 2018, 11:48:21 AM »
This sure has been a home run. Well done, guys. I love these BV growth plays.

But....this is a debt-oriented company, in areas that seem shaky, no? Affordable housing ( with 1.1X debt service coverage per the 10-K) and renewable energy ( which seems beholden to tax incentives).

I notice that Falcone has been prominent since 1997, and CEO since 2005. So, he was instrumental in the blow-up a decade ago. How does that figure into people's thinking here? Just how risky is this?

My username is not a political statement.....and I'm too lazy to change it.

globalfinancepartners

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Re: MMAB - MuniMae, LLC
« Reply #22 on: November 08, 2018, 12:12:17 PM »
It has been a delightful investment.  About to report book value above $34 per share and available very recently in the $25's.  I don't think it is correct that Michael Falcone was involved with the company during the MuniMae blow up.  He was CEO of MMA Capital management since 2005, but MMA Capital management was not the same as MuniMae, the mess of a shell he took over.
** This is incorrect.  falcone was in fact involved with MuniMae - my apologies **
https://www.businesswire.com/news/home/20041209005690/en/MuniMae-Announces-CEO-Succession-Michael-L.-Falcone

As for how risky it is?  Who knows!  The people with the greatest grasp on the business continue to put more of their net worth into the shares and repurchase shares below book.  I'm holding for a while longer

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

This sure has been a home run. Well done, guys. I love these BV growth plays.

But....this is a debt-oriented company, in areas that seem shaky, no? Affordable housing ( with 1.1X debt service coverage per the 10-K) and renewable energy ( which seems beholden to tax incentives).

I notice that Falcone has been prominent since 1997, and CEO since 2005. So, he was instrumental in the blow-up a decade ago. How does that figure into people's thinking here? Just how risky is this?
« Last Edit: November 08, 2018, 12:50:07 PM by globalfinancepartners »

misterkrusty

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Re: MMAB - MuniMae, LLC
« Reply #23 on: November 08, 2018, 03:16:38 PM »
Sometimes people get religion.  I wrote this up on the VIC in the $2s (then sold in the $4s partly due to not being sure about Falcone).

Renta Corporacion in Spain is another case of a company run by a guy who blew up in the housing bubble (in this case, the one in Spain) who is now doing all the right things.  Full disclosure: I'm long Renta.

Libs

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Re: MMAB - MuniMae, LLC
« Reply #24 on: November 09, 2018, 09:54:44 AM »
<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.





My username is not a political statement.....and I'm too lazy to change it.

globalfinancepartners

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Re: MMAB - MuniMae, LLC
« Reply #25 on: November 09, 2018, 10:02:05 AM »
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.

globalfinancepartners

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Re: MMAB - MuniMae, LLC
« Reply #26 on: November 10, 2018, 07:54:04 AM »
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

Quote
"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."

« Last Edit: November 10, 2018, 08:10:18 AM by globalfinancepartners »