Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2008)
12 slides from Cadence Capital's shareholder meeting presentation, Nov 18, 2008
Slide 1: AGM 18th November 2008
For personal use only AGM 18th November 2008 10.00 – 11.00 am History House
Slide 2: Since the November 2007 AGM
Since the November 2007 AGM For personal use only A 7000 6500 B 6000 5500 5000 4500 C 4000 3500 3000 2500 2000 98 0 2 4 06 9 1 3 5 7 -97 9 -01 -03 -05 l- 0 l- 0 l- 0 -9 -0 -0 -0 -0 -9 u l- u l- ar ar ar ar ar ov ov ov ov ov - Ju - Ju - Ju -J -J -M -M -M -M -M -N -N -N -N -N 19 19 19 19 19 19 19 19 1
Slide 3: Since November 2007
Since November 2007 For personal use only Î The All Ordinaries Accumulation Index has fallen 39% Î The Small Ordinaries Index has fallen 53% Î The market falls to date compared to previous falls have been severe Page 2
Slide 4: Since November 2007
Since November 2007 For personal use only In a relatively short period of time we have seen: ÎThe ‘sub-prime’ problem and potential losses expand from an initial $200 - $300bln to $2.5 trillion depending on estimates ÎThe AIG Insurance bail-out grow from around $150bln to $300bln depending on estima
Slide 5: Since November 2007
Since November 2007 For personal use only ÎSignificantly for Asia and particularly Australian stocks the contagion effect has been even greater than the effect in the US Page 4
Slide 6: Fund Performance
Fund Performance For personal use only Performance to 31st October 2008 CDM All Ords 1 Month -13.46% -13.92% 3 Months -16.13% 16 13% -19.97% 19 97% 6 Months -18.03% -27.98% 1 Year -31.06% -38.69% 2 Years ( % per Annum) -6.50% -10.25% 3 Years ( % per Annum) 9.58% 0.66% A Annualised li d return since
Slide 7: Exposure Summary
Exposure Summary For personal use only 160% 140% 120% 100% 80% 60% Long Exposure Short Exposure 40% Net Exposure 20% 0% -20% -40% -60% Î Past 12 months reduced net long exposure down from 90% to 50% Î Past 12 months reduced overall gross exposure down from 135% to 95% Î September and October 2008 ba
Slide 8: Share Buy Backs
Share Buy Backs For personal use only Î On-Market O M k t Share Sh Buy-Back B B k approved dbby th the B Board d off Di Directors t - 21st December 2008 - bought back 180,000 shares Î Equal access Off-Market Share Buy-Back in October 2008 - Bought back 398,000 shares Î Will continue using Buy-Backs
Slide 9: Fundamental Analysis
For personal use only Fundamental Analysis Templates Long positions Short positions ’08 ‘09 ’10 ’08 ‘09 ’10 EPS Growth 20 16.5 22 EPS Growth 10 5 5 PE 10 11 11 PE 20 15 15 PEG 2 1.5 2 PEG 0.5 0.3 0.3 OCF yield 12-15 % OCF yield -ve % to 8 % FCF yield 8% -10% FCF yield -ve % to 3% C h Cash Y Yes Cash
Slide 10: Technical analysis
Technical analysis For personal use only Do not short Do not buy Î the short-term (one year) share price and share volume indicators (short term trend); Î the long long-term term (five year) share price and share volume indicators (long term trend); Î the average weekly volume of shares traded Page
Slide 11: The Current situation
The Current situation For personal use only The over-riding issue at the moment is liquidity: Î Redemptions across many asset classes Î Lock-ups of mortgage trusts and funds Î Margin calls on loans Î Forced sale of assets Î Foreclosures Î Liquidations, insolvencies and bankruptcies Î A $10bln stimul
Slide 12: Outlook and Questions
Outlook and Questions For personal use only Î Liquidity looks to be an ongoing problem. As always liquidity is a ‘double-edged’ double edged sword. sword It is a problem for sellers and can drive decisions independently of valuations Î There is likely to be a great deal of uncertainty in the near te
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