Is Malta Properties (MTSE:MPC) Using Too Much Debt?
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December 16, 2020 David Iben put it well when he said, Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital. So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly,
Malta Properties Company p.l.c. (MTSE:MPC) does carry debt. But should shareholders be worried about its use of debt? When Is Debt A Problem? Generally speaking, debt only becomes a real problem when a company can t easily pay it off, either by raising capital or with its own cash flow. Ultimately, if the company can t fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, plenty o
The MSE Equity Price Index added a further 0.3% closing at a 9-month high of 4,166.078 points on Wednesday. The rise was attributable to the gains in MPC, Medserv, RS2, Lombard and Harvest whilst the remaining five active equities closed unchanged. Similarly, trading activity also surged to a 9-month high of €0.95 million, largely on account of the heightened activity registered in MPC and Medserv.
Malta Properties Company plc jumped by 4% to recapture the €0.52 level with just over 1.1 million shares changing hands.
Wednesday s best performing equity, Medserv plc, surged by 6.3% to a near 4½ month high of €0.68 across 356,408 shares.
Meanwhile, RS2 Software plc inched nearly 1% higher as the equity regained the €2.06 level across 2,644 shares. Yesterday, RS2 held an Extraordinary General Meeting (“EGM”) whereby a number of resolutions mainly relating to the capital raising plans via an issuance of preference shares were approved by shareholders. The company is schedu
The MSE Equity Total Return Index extended its positive trend for the seventh consecutive week, having registered a positive 2.1 per cent increase to 8,528.554 points.
A total of 20 equities were active, 14 of which headed north, while another four closed in the red. A total weekly turnover of €1.6 million was generated across 253 transactions.
Telecommunications company, GO plc¸ was the most active, as it generated a total turnover of €212,639. A total of 21 deals involving 62,301 shares pushed the price 12.5% higher, reaching the €3.60 price level – a six-month high. On the other hand, its subsidiary, BMIT Technologies plc, declined by 0.8% as 301,866 shares changed hands over 25 deals. The equity ended the week at the €0.48 price level.