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willy_wonker
05-08-2004, 01:53 PM
CDI

CDI
05/08/2004
HALFYR

REL: 1149 HRS CDL Investments New Zealand Limited

HALFYR: CDI: HY to 30/06/2004 $4.734m ($3.686m) +28.4% No Div


CDL

CDL
05/08/2004
HALFYR

REL: 1149 HRS CDL Hotels New Zealand Limited

HALFYR: CDL: HY to 30/06/2004 $9.352m ($8.166m) +14.5% No Div


Disc: holds cdl & cdi

k1w1
05-08-2004, 02:55 PM
Are these part of your income portfolio ?

Disclosure : Jealous becos not holding any.[B)]

Snow Leopard
05-08-2004, 02:59 PM
I admit to knowing little about these two, but a quick look suggests that research is in order. Given their NTAs, P/Es and a reasonable profit their current price seems to have potential.
Is CDL under-priced do you think?

willy_wonker
05-08-2004, 03:46 PM
Both are good long term stocks. Gives good div for full year result and continue to make record profits. All in all I am a happy holder.

boring
05-08-2004, 08:08 PM
I purchased shares in CDL in early 2003 at 27 cents after reading some of C9's posts. I normally keep clear of hotel stocks, but did some research myself, liked the recovery story and fundamentals at the time and bought in.

Still holding now and see no reason not to at this stage.

So I really do owe C9 a beer. Proof that you can make good money reading posts in Sharetrader, as long as you do your own research and take responsibility for your own decisions.

Harrys
05-08-2004, 09:05 PM
I got some at 37c a year ago and they are now 47c so I'm not complaining at that and they pay a good div and dont forget that
shareholders get a 50% discount at their hotels! Their pe is now 10
so I'm not so certain about further growth so I would be looking for something on a lower pe when I buy again - like AFF

willy_wonker
06-08-2004, 08:37 AM
I am both very happy with CDL and CDI.

CDI is an interesting one to watch. Alot of cash in the bank, NTA @ 26.5 cents with a good half yr profit of $4.74m, assume they can make $8m for the full yr and a market cap of $54m, gives it a p/e 6.75. The only thing you have to be careful of is that the NZ property market have slowed, but that is good for the long term trend.

Harrys
06-08-2004, 07:30 PM
I had some CDI but sold them a month ago at 27c because I felt there was not much upside because of residential building slowing down.
Bought TWR with the proceeds. Thats far more exiting.

stormrose
07-08-2004, 05:46 AM
I've nearly doubled my $$ on CDL. Go you good thing.

Capitalist
07-08-2004, 12:28 PM
Hat-tip to C9 here again folks, just like PVO :D:D:D

The original CDL bull ...good one C9


CDL is UNDERVALUED, seems to be in a long term uptrend and as we know is way under NTA, exposed to tourism and making a profit.

I really think you will have made a long term mistake Farouk, I hear your story but that is surely the worst of their hotels from the ones I have personally been to. It may not happen overnight but I will double my money in the next few years.

Very comfortable at 24c.

C9

Burgerbun
19-08-2004, 11:28 PM
Thankyou guys esp Cap my darling and boring.

Its been a real goody and not talked about too much....

dont forget the nice wee divvys when we add to the 100% cap gain:D


Solid backing, NTA and tourism, and to top it off the property boom.

Still good value but not quite the bargain we got in the low 20s

Burgerbun
19-08-2004, 11:35 PM
BTW

this stock could easily have another 20% in it by 05.

a full year result of around 18-9m would see it rerated and even on a PE of 10 would give a market cap of $190m

all very reasonable assumptions imo


55-56c looks likely so another 20%.

The P.O.D.
07-10-2004, 08:52 AM
THL has had a good run lately. Interesting to compare to CDL...

<pre id="code"> CDL THL
p 0.49 1.95
p/e 6.5 17.1
NTA 0.68 1.43
div 2.9% 6.2%
</pre id="code">

The dividend and possibly diversification of revenue is the only thing in favour of THL. CDL is trading at a significant discount to NTA while THL is at a premium. Who also has the best track record?

In saying the above I still think THL has a little bit to go yet.

For a six month outlook though, I see CDL as possibly one of the lowest risk vs return stocks on the market. Especially considering the recent bull run of the NZX in general. It's tightly held and has large institutions (inc ACC) behind it.

Bling_Bling
08-10-2004, 08:45 AM
Interesting reading.

Hey, whats up with CDI? Noticed a nice move upwards lately.

PLYNCH
08-10-2004, 12:18 PM
One of the big broking houses has put a buy on them.(Beantown I think)

Bling_Bling
08-10-2004, 12:30 PM
I've never heard of Beantown. What or who is Beantown?

Burgerbun
08-10-2004, 06:10 PM
quote:Originally posted by PLYNCH

One of the big broking houses has put a buy on them.(Beantown I think)



:D:D:D
now they put a buy on them....typical idiots


C9 had a buy on them at 24c, just before div. Made entry 22.4c.

so after more than 100% plus 2 years of divs

they put a buy.....

sounds like one of Belgs companies[:p]..except I think his is called Beanbrain....maybe a relative[?][B)]

PLYNCH
08-10-2004, 08:40 PM
Beantown = Boston
Boston = Credit Suisse First Boston
Now called NZ First Capital I think.
They change there name so offen its hard to keep up.
Some people still call them Jardens.

parker1other
02-11-2009, 03:23 AM
any one still holding cdl/mck I would apreciate coment from FA and those chart using investors/traders. The land banking aspect or NTA if you like interests me how can such an asset rich group of companies have such poor over all returns.?? is there enough liquidity as in numbers of shares traded daily for these roughies to be worth another punt.

thanks parker1other

Lizard
02-11-2009, 08:22 AM
Hi Parker,

I don't hold any CDI at present, but I also find their asset-backing of interest. Though I don't see them as being a "punt" because the liquidity is very low and has been that way for many years.

I've often thought they'd be a good vehicle for younger investors saving for a first house - put a few $k into CDI every now and then and the value should be somewhat benchmarked to residential property values. Plus might get some benefit from the fact that you are investing in current land holdings at about half the value you could supposedly buy them.

If this was to trade at 15% discount to NAV based on updated market valuations like most other listed property generally does, the price would be about 61cps. Then again, CDI doesn't have the advantage of rental income in a quiet market.

It's hard to be sure when the next boom time will come along for CDI. Possibly a few years away. The shares lagged the residential construction market quite markedly in the last building cycle which made it a very low risk buy at the last low (from memory, about 15cps). Not sure that will happen again though.

forest
02-11-2009, 07:16 PM
Hi Parker

I also noticed the high asset backing of MCK but the fact is that MCK's return on those assets was low last year ROE 4.1% (average last 9 years 7.4%). Many investors are looking for a return of 10% plus I think.

But remember MCK has 3 possible income streams
- CDL investments
- Hotels NZ + AUS
- Joint venture in China construction industry

CDL develops residential land and is very cyclic. The cycle must have just past its bottom and if immigration and confidence improves CDL should do better.

Hotels, about half the hotel nights are not locals. John Key is our minister of tourism, in theory he should be in a position to generate more people staying in our hotels.

And thirdly the Chinese economy is growing nicely so the construction industry should do well.

I think its fair to say there is plenty of potential.

parker1other
05-11-2009, 03:31 AM
Thanks for the reply, i have looked on stocknessmonster as i dont have charting software
also when i speak to my broker they say these shares are not often researched in house
i am a long term holder and have made money out of the old company cdl.
I do find the present MCK< CDI listings confusing but go back to the current NTA and look at them as a property investment company, on that basis alone both entities seem sound. what do traders think???? buy, hold, sell or ??????

forest
05-11-2009, 12:14 PM
Hi Parker, I agree that MCK is sound looking at the NTA. Because of the high NTA / SP I see very little down side.
As you mentioned there is little research carried out on MCK. But the way I look at it is that the company is in a cyclical sector. The average earnings in the last 7 years were 6.2 c and the average operational CF 8.6 c. To me there seems no reason why MCK should not have the same or better results averaging in the next 7 years specially considering that their NTA is so much better at present.
Those averages E and CF seems to me favourable if you consider todays SP of 45c.

I do not think you find many traders of MCK as their average dayly turn over is less then $20,000.

winner69
22-02-2011, 02:04 PM
Copthorne chch apparently a goner in the quake ... not good for MCK

blackcap
22-02-2011, 02:59 PM
Copthorne chch apparently a goner in the quake ... not good for MCK

surely covered by insurance Winner? Could be very good for them...

Lizard
31-12-2011, 09:03 PM
CDI is a hard one to call at present... certainly at 30cps there is some value there, especially since the property valuers "realisable value" was about $70m higher than the recognised book value and market cap of $78m already falls short of the $95m NTA.

Trouble is, section sales slowed to a trickle in first half c.f. the good old days. With all respect to Christchurch residents, surely NZ total is in need of a few new section sales? Though at Harrowglen (Auckland) prices - starting at $295k - I can understand the argument for NZ land prices needing to pull back a bit...

Lizard
23-02-2012, 07:57 AM
In a season where most of the results I've been watching have seen me yawn, this was one result that came up better than expected, with around $2.5m NPAT in second half (versus first half of $1.2m).

Independent value of land holdings increased by $3.3m to $162.7m, despite no new land purchases (and some obviously having been sold). So now about a $75m gap between realisable value and recognised "book value" - and, at 32cps, still trading at a discount to book value.

Pretty much paying out all the profits as div this year at 1.4cps - although it looks to me as though a large proportion of holders normally take the DRP on this one.

Still seems like a cheap way to buy land.

Lizard
23-02-2012, 08:18 AM
Hi Sparky, I'm referring to CDI the land business, not MCK the hotel business...(MCK is a large holder of CDI though)

...if there is a "one-off" in this result, it is possibly land sales resulting from the Christchurch earthquake - which might still have a bit to bring in.

I had a look at MCK too - probably worth a write-up sometime, but will take a bit of time - I might wait till the Annual Report is available and can pick it apart a bit more easily.

Lizard
23-05-2012, 06:39 AM
CDI currently my favorite property exposure. AGM presentation out yesterday and some excellent portents despite no obvious forecast - namely section sales YTD at April are 19 settled and 82 unconditional (total 101) c.f. a total of 40 at same time last year and 77 sold for entire 2011.

Current price 37cps for market cap of $99m versus land holdings of $162.7m at year end 2011.

forest
24-05-2012, 03:45 PM
I agree with you Lizard that it is comforting to have such a large margin of safety between market cap of $99m and independend valuation of land of $162.7 mil. Add to that, this is a company with a very low operation cost structure, $10mil of surplus cash in the bank and the property cycle that looks like on the up.

Lizard
02-08-2012, 05:48 PM
Very strong half year and managed to beat FY11. Commentary suggests the growth is coming out of Auckland and Hamilton, with Christchurch sections still to come. Now $13.95m surplus cash - presumably some will be re-invested in more land bank.

Also likely to produce a healthy div in April next year - plenty of time to accumulate on dips.

forest
02-08-2012, 07:29 PM
Nice 1H result for CDL, 1H results also out for MCK.
MCK traded last at 43c which gives it a historic P/E of 7.3, net Profit for the 1H12 was only a little less then the whole of 2011.
This is thus an enormous growth on last year. I like companies with a low P/E and strong growth in earnings.
Are there any other companies with low P/E's and earnings growing 50% plus? I would love to know.

Lizard
22-02-2013, 08:18 PM
Very strong result for CDI with FY NPAT up 145% to $9.3m. Looks like they haven't reinvested in any more property yet, so cash has ballooned to $23.9m. Presumably they are planning to invest further and/or up the development spend, as only increased div to 1.7cps, which seemed light in comparison (equates to about $4.6m and some will be covered by the DRP).

Based on assessed market value of property (rather than value at cost) and on cash in bank, I would suggest fair value lies closer to 64cps (last trade 55cps). However, the low yield may limit market interest.

Lizard
28-05-2013, 02:32 PM
CDI currently my favorite property exposure. AGM presentation out yesterday and some excellent portents despite no obvious forecast - namely section sales YTD at April are 19 settled and 82 unconditional (total 101) c.f. a total of 40 at same time last year and 77 sold for entire 2011.

Current price 37cps for market cap of $99m versus land holdings of $162.7m at year end 2011.

One year on from last post, price is now 57cps (with 1.7cps div paid) and now have YTD stats at 27 settled and 149 unconditional (total 176) c.f. total of 101 at same time last year.... so explosive growth continues and should see more added to the share price over next 12 months.

Land holdings at year end holding up at $159.7m, although market cap has now nearly caught up at $156.6m

forest
28-05-2013, 04:07 PM
[QUOTE=Lizard;409422] so explosive growth continues and should see more added to the share price over next 12 months.

Good growth indeed, I was at todays meeting and came away with the impression of more growth to come in the next 2 years.

CDI is a very frugal company and has only 2 fulltime employees and a couple of partimers.

Same CEO, BK Chiu is also CEO of MCK, MCK is known for their hotels but also has a parnership developing land in China. If you like CDI you might be impressed with their Chinees develpments (I am). The partnership has started a $1b, 5 year project and MCK does not expect it needs any new funding.
MCK is also trading well below NTA and low P/E. Looking back ina few years time todays price might look like a bargain.

forest
26-09-2013, 02:47 PM
CDI: Stonebrook & Prestons Road Development Update
9:06am, 26 Sep 2013 | GENERAL
CDL INVESTMENTS COMPLETES FIRST TWO STAGES OF STONEBROOK AND STARTS WORKS ON PRESTONS ROAD

Residential property developer CDL Investments New Zealand Limited (NZX: CDI) recently achieved two important milestones at its Canterbury subdivisions - the completion of all works as well as the settlement of the majority of sections at Stages 1 and 2 of its Stonebrook subdivision located at Rolleston and the commencement of work at its Prestons Road site.

The result of several years’ planning and extensive work, Stonebrook Stages 1 and 2 comprise 90 sections of a total of over 400 sections across the 42 hectare site.

Stonebrook has been designed to offer a range of section sizes and housing densities which will appeal to a wide range of buyers. Every section also has access to fibre broadband services over Enable’s new network. Details of available sections and pricing can be found at the dedicated website http://www.stonebrook.co.nz/.

CDI Managing Director Mr. B K Chiu said that completion of the first two stages was a significant milestone.

“The demand for Stonebrook has been strong and we are delighted that we have been able to mark the completion of the first two stages of Stonebrook. This has been a major project for us this year and will ensure that CDI betters its 2012 results” he said.

Mr. Chiu noted that Stage 3 has practically been sold out with settlements to occur in 2014 and that Stage 4 was due to be released very shortly.

“The need for high quality sections in Rolleston remains and we are confident that Stage 4 will also sell out in the near future”, he said.

CDI also owns 75 hectares of residential-zoned land located between Mairehau and Prestons Roads, 6.5 kilometres from the Christchurch CBD. It is part of Prestons, a dynamic new residential subdivision located in the north east of Christchurch. Prestons is ideally located to connect to public transport, is close to Christchurch city yet is also adjacent to the recreational area of Bottle Lake Forest.

Prestons is designed to be a sustainable urban village, is 203-hectares in total size and will become a residential precinct for over 2,500 houses and 8,000 residents. It is a joint venture development between Ngāi Tahu Property, CDL Land New Zealand Ltd. and Foodstuffs South Island Ltd.

Mr. Chiu confirmed that CDI had obtained planning consents and earthworks would start by the end of 2013.

“Much like our Stonebrook subdivision, we believe sections at Prestons will strongly appeal to a wide range of buyers seeking high quality residential sections within easy reach of Christchurch” he said.

ENDS

Issued by CDL Investments New Zealand Ltd

Any inquiries please contact:
B K Chiu
Managing Director
CDL Investments New Zealand Ltd
(09) 913 8077

Attachments

percy
26-09-2013, 03:26 PM
Forest.
Very positive outlook.You look to be "well positioned!"

forest
26-09-2013, 04:12 PM
Forest.
Very positive outlook.You look to be "well positioned!"

Percy I have this one in our yearly competition so I am pleased to see the positive info. I always thought this one was not to difficult to predict after the earth quakes. Simple business, residential land development in NZ.

forest
20-10-2013, 10:59 AM
On the MVN tread you hinted that you are interested in my valuation on CDI.

I see CDI as a cyclical stock and cyclicals have their earnings and their SP going up and down possible more than some less cyclical companies.

Some positives, - conservative management
- EPS 1H13 up 45% compared to 1H12
- assets are kept on the books at cost, most assets are land purchased quite some time ago so I expect some extra hidden value
- no debt
- 26mil of cash and cash equivalents
- single focus company, so predicting good times or bad becomes easier
- at the moment their seem to be an increased demand for sections, and this could continue for a while.

Some negatives, - low liquidity
- in my mind CDL value is hard to pin point, but dependent on ones view on were we are in the property cycle one can see value or not.

Often property lags the general economic cycle and therefor plenty of room for growth.

percy
20-10-2013, 04:51 PM
Forest,
Thank you.

Vaygor1
20-10-2013, 11:50 PM
Hi Forest.

I am interested in your view re CDI's dividends in lieu of cash scheme.

It appears the majority of shareholders (or at least a few of the big ones) are opted-in to this scheme so unless I am opted in too, my percentage shareholding dilutes every year unless I purchase more on the market to make up for it. Do you concur?

What if CDI were to instead retain all its earnings and pay no dividend at all? My perception is the current method of opting in or not means that the income (either in dividends or shares) is taxable but if CDI adopted a no-dividend-and-retain-all-earnings policy, then all (or most?) of this tax would be saved and this saving would eventually be reflected in the share price (as long as the company remains successful). If I am right then this would benefit the long term shareholders who don't need the dividend but on the downside would cause a further reduction in liquidity at least until the share became more widely known in the market. Is my perception correct?

Assuming I have got the above right, I would much prefer seeing my dividend non taxed (instead of taxed) and retained by CDI. They seem to be doing very well indeed. Wasn't YE2012 up 150% on YE2011? Like RYM I think there is significant hidden value in the unrealised worth of their assets.

forest
21-10-2013, 06:48 AM
Hi Forest.

I am interested in your view re CDI's dividends in lieu of cash scheme.

It appears the majority of shareholders (or at least a few of the big ones) are opted-in to this scheme so unless I am opted in too, my percentage shareholding dilutes every year unless I purchase more on the market to make up for it. Do you concur?

What if CDI were to instead retain all its earnings and pay no dividend at all? My perception is the current method of opting in or not means that the income (either in dividends or shares) is taxable but if CDI adopted a no-dividend-and-retain-all-earnings policy, then all (or most?) of this tax would be saved and this saving would eventually be reflected in the share price (as long as the company remains successful). If I am right then this would benefit the long term shareholders who don't need the dividend but on the downside would cause a further reduction in liquidity at least until the share became more widely known in the market. Is my perception correct?

Assuming I have got the above right, I would much prefer seeing my dividend non taxed (instead of taxed) and retained by CDI. They seem to be doing very well indeed. Wasn't YE2012 up 150% on YE2011? Like RYM I think there is significant hidden value in the unrealised worth of their assets.

Hi Vaygor, the tax advantages of dividend or no dividend would be better answered by an accountant, but I would have thought that a company would pay company tax on retained earnings.
The present policy of a dividend reinvestment plan causes the mayor shareholder (MCK) to creep up the percentage of its ownership if they take part in the reinvestment plan and some other shareholders do not.And this has been the case. CDI and MCK are closely relations with cross over in management and directors. So one could see MCK participating in the reinvestment plan as a positive. Nobody understands CDI better than MCK.
CDI have a good cash reserve so they might not have any need to retain more earnings then they already do.

Vaygor1
28-10-2013, 09:38 AM
Thanks Forest.
Much appreciated.

I decided to opt into the scheme. My father (retired) is an accountant so I will let you know once I have discussed with him re taxation.

Sorry about the delay in responding to your post. Have been sailing the last week... civilisation has been completely non-connectable until last night.

benjitara
01-11-2013, 09:32 AM
The press ran a article about the Prestons subdivision getting underway yesterday with the first earthworks. This is on track with what CDL reported. Strong sales of stage 2 before any went to market so this should underpin the share price for some time yet. Their Rolleston subdivision is a general success too. solid outlook.

Vaygor1
22-02-2014, 04:04 AM
Audited financial results out last week for CDI Year End 31-Dec-2013.



METRIC
YEAR END 31-DEC-2013
YEAR END 31 Dec 2012
CHANGE


Profit after tax
$13.4 million
$9.3 million
Up 44%


Profit before tax
$18.6 million
$12.9 million
Up 44%


Total Revenue & other income
$38.4 million
$26.5 million
Up 45%


Shareholders Funds
$118.9 million
$106.5 million
Up 12%


Land Holdings - Book value
$86.6 million
$83.3 million
Up 4%


Land Holdings - Independently valued
$177.5 million
$157.9 million
Up 12%


Total Assets
$120.3 million
108.0 million
Up 11%


Sections Sold
202
123
Up 64%


NTA (at book value)
43.3 cents/share
39.6 cents/share
Up 9%


Earnings Per Share
4.92 cents/share
3.50 cents/share
Up 41%


Fully Imputed Dividend
2.0 cents/share
1.7 cents/share
Up 18%



Back of envelope calc..... (Independently Valued Land Holdings - Book Value of the same + Total Equity) / No. of Shares, I get the Net Tangible Assets + 2 cent Dividend = 79 cents/share. Closing price today of $0.56c looks like a bargain to me.

Disc: Holding.

Lizard
27-05-2014, 08:30 PM
One year on from last post, price is now 57cps (with 1.7cps div paid) and now have YTD stats at 27 settled and 149 unconditional (total 176) c.f. total of 101 at same time last year.... so explosive growth continues and should see more added to the share price over next 12 months.

Land holdings at year end holding up at $159.7m, although market cap has now nearly caught up at $156.6m

And another year on, price has actually gone backwards at 53cps ($146m market cap), despite higher div of 2cps. Furthermore, we now have YTD stats at 54 settled and 151 unconditional (total 205), c.f. total of 176 last year and 101 in 2012...land holdings at $177.5m and, ooh look, they have even announced that they are "well-positioned" :t_up: (percy, are you collecting copyright on this phrase still???)

So, gap between value and price has re-emerged... we have net migration flows and sales YTD to support, as well as solid land bank. Looks good to me.

stoploss
27-05-2014, 08:52 PM
And another year on, price has actually gone backwards at 53cps ($146m market cap), despite higher div of 2cps. Furthermore, we now have YTD stats at 54 settled and 151 unconditional (total 205), c.f. total of 176 last year and 101 in 2012...land holdings at $177.5m and, ooh look, they have even announced that they are "well-positioned" :t_up: (percy, are you collecting copyright on this phrase still???)

So, gap between value and price has re-emerged... we have net migration flows and sales YTD to support, as well as solid land bank. Looks good to me.
This company is not too good on closing that Gap.
Look at MCK asset backing 130 cents plus, vs shareprice 70 cents ...

percy
27-05-2014, 08:54 PM
And another year on, price has actually gone backwards at 53cps ($146m market cap), despite higher div of 2cps. Furthermore, we now have YTD stats at 54 settled and 151 unconditional (total 205), c.f. total of 176 last year and 101 in 2012...land holdings at $177.5m and, ooh look, they have even announced that they are "well-positioned" :t_up: (percy, are you collecting copyright on this phrase still???)

So, gap between value and price has re-emerged... we have net migration flows and sales YTD to support, as well as solid land bank. Looks good to me.
Certainly copyright here on sharetrader.I really enjoy it when other posters throw it back at me.!!
Just love it when companies use that phrase..!!??
Just between you and me, the real give away [insider trading] is when an announcement has the word significant used more than twice.!!!! Twice means buy,Three times means raging buy.Four times,sell the house and put all you money on it.!!

Lizard
27-05-2014, 09:37 PM
Certainly copyright here on sharetrader.I really enjoy it when other posters throw it back at me.!!
Just love it when companies use that phrase..!!??
Just between you and me, the real give away [insider trading] is when an announcement has the word significant used more than twice.!!!! Twice means buy,Three times means raging buy.Four times,sell the house and put all you money on it.!!

Thanks, percy! You just saved me a heap of time... now, instead of wasting time reading the announcements, I can just do a "control-f" on the word significant and read off the number of "finds" for the Percy Index rating! :D

percy
28-05-2014, 06:18 AM
Thanks, percy! You just saved me a heap of time... now, instead of wasting time reading the announcements, I can just do a "control-f" on the word significant and read off the number of "finds" for the Percy Index rating! :D

It is the only 100% accurate buy signal that works.!!
It was brought to my attention after I read a Zintel announcement a few years ago.Nick Gordon used the word FIVE times.!!!
Not knowning "insider trading" signals at the time I mistaking only brought a modest amount of shares.However I did enjoy a fabulous ride with them.Have not seen the word used five times in an announcement since [I have been holding myself at the ready]. lol.

Vaygor1
06-07-2014, 02:18 AM
With current independent land valuations, if CDI liquidated, a quick calc tells me one would get about 80c a share but currently just over 50c a share.

Is this stock undervalued?

If so, is it because of its lack of sharemarket trade-ability due to its obscurity?
or maybe because it listed many many years ago through the back door?
or their cornerstone shareholder is Millennium & Copthorne Hotels (MCK) who haven't been doing so well lately?
or some bad history maybe?
or is it just a good buy?

Here is a summary of their last audited results:

5982


Given these figures along with the SP pre-announcement (ie taking into account market sentiment) I would expect the current SP to be 68-70c by now.

For the year ending 31-Dec-2013, their percentage increases compared to 31-Dec-2012 across the board were even better than the figures above but the price has still not moved appreciably in all that time since Jan-2013.

Any feedback appreciated.

Disc: Holding some.

whipit
10-07-2014, 12:08 AM
I think liquidity is a turn off.
It is difficult build a substantial holding without pushing the price through the roof.

$5k can cause a 2.8% drop, and there is seldom more that $200k is depth.

I'm not sure what the catalyst would be to push this along but I agree they are producing results.

Vaygor1
10-07-2014, 05:22 AM
Thanks WhipIt.

I think you have a valid point there for sure. At times in the recent past there have been zero sellers and zero buyers for reasonably lengthy periods (ie weeks).
I guess when people need cash they need cash, so just sell at whatever price they can find a buyer at, maybe even knowing full well they are getting rid of them for cheap.
Used to be like RYM was once many years ago - hence the name of the ShareTrader thread 'Ryman - too boring to talk about?' which started almost to this day 10 years ago.

In addition to the above, do you think that the Chinese owning/controlling most of MCK who own most of CDI has any negative impact on market sentiment towards CDI? Bit of a touchy subject but Chinese ownership is talked about a lot in the press ie Winston/Greens/Crafer Farms/melamine/Orivida etc etc.

Disc: Nationality kiwi. No Chinese ancestry.

blackcap
10-07-2014, 06:37 AM
Thanks WhipIt.

I think you have a valid point there for sure. At times in the recent past there have been zero sellers and zero buyers for reasonably lengthy periods (ie weeks).
I guess when people need cash they need cash, so just sell at whatever price they can find a buyer at, maybe even knowing full well they are getting rid of them for cheap.
Used to be like RYM was once many years ago - hence the name of the ShareTrader thread 'Ryman - too boring to talk about?' which started almost to this day 10 years ago.

In addition to the above, do you think that the Chinese owning/controlling most of MCK who own most of CDI has any negative impact on market sentiment towards CDI? Bit of a touchy subject but Chinese ownership is talked about a lot in the press ie Winston/Greens/Crafer Farms/melamine/Orivida etc etc.

Disc: Nationality kiwi. No Chinese ancestry.

Hi Vaygor1,

I was going to get back to you earlier but got caught up with work. I think the illiquidity does pose a small problem as Whipit stated but to be fair I also think Xenophobia has a lot to do with it. I hold CDI and am very happy to keep holding and think looking forward you have made a great case. But even I am wary of Asian influence in my investments as I have been burned with Richina in the past. Off course its all anecdotal and my fears more than likely have no empirical base but I cannot shake that feeling. It might be a touchy subject but I think you have hit the nail on the head.

Vaygor1
13-07-2014, 06:13 PM
Thanks Blackcap.

I just took a quick look at CDI's last annual report. 20th largest shareholder has approx 310,000 shares equating to 0.11% of the company. The dividend reinvestment plan (which I subscribe to) will have altered these numbers slightly since then.

Whipit infers there is occasionally more than $200k in CDI depth on the NZX (not sure if that is $200k in just sellers, just buyers, or all up). But in any event, $200k @ approx $0.50/share would buy 400,000 shares, currently around the 18th biggest shareholder slot. As Whipit also points out, one would likely pay a (hopefully small) premium for the shares, as any buyer after that sort of quantity would probably bump the price up a bit given the shares' lack of liquidity…. but in my view, the price should be up anyway and it is this lack of interest in CDI that 'bumps' it back down again.

Re the Chinese ownership. I don't know if any uneasiness I feel is purely the Chinese ownership thing, or more perhaps the history of the company ownership and the debacles going back a long way now.


Long ago - all bad news:
The combination of complex historical bad stuff involving Judge Corp, Renouf Corp, Euro-National, Kupe Group (which is now CDI), Rod Petricevic, October '87 crash, etc etc and the impact that has had on MCK up to even 4 years ago even though none of this should directly effect CDI today…. but as they say, sh!te splatters.
E.g. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10648133


Not so long ago - average news:
Info here including further hyperlinks to what was going on around 8-10 years ago.
http://www.propbd.co.nz/cdl-investments-balance-sheet-improves-despite-absence-of-revaluations/


Recent times - all good news:
Plenty of info here.
http://www.propbd.co.nz/category/sectors/gainz/securities-nz/cdl-investments/
and further info on the page-hyperlinks at the bottom of this link demonstrating a few other bumps along the road in-between the periods above.

All up, I think I trust the board as they stand today. The company seems to have matured in its behaviour, competency, transparency, and accurate yet conservative forward guidance. Without this, I am almost sure I would not have bought any.

Lizard
14-07-2014, 07:27 PM
I think the board have been pretty solid. Costs always look well-contained and they have proved the ability to select and develop a quality land-bank. Weakness for now is still about lack of liquidity/public profile. The only way the small companies on the NZX get any real notice is if they want to raise debt or equity and therefore spend money getting assistance from the brokers. Profitable companies with solid balance sheets and slow growth can fly under the radar for a long time, with only dividends or a takeover to support the share price. In the case of CDI, MCK ownership puts paid to the latter (unless they were to be the acquirer).

My experience suggests that these sorts of companies aren't going to give the glamour 100%+ returns, but they can frequently manage a solid 30-50% gain over 1-2 years if the dividend and profits are on the rise and without too much downside risk over the medium-long term.

It is difficult to know how determined efforts to both quell the rise in house prices and reduce the cost of new building will affect CDI, as there are possible factors both for and against profit increases.

forest
14-07-2014, 08:21 PM
Had a conversation with the Managing Director BK Chiu, my understanding is that sections are selling well and CDI are likely to sell more sections than last financial year. However profit growth might not be what you expect as the average value and profit margin per section is likely to be reduced because of the locations of the sections presently sold. Also CDI are finding it harder to purchase land for a price they consider acceptable. So maybe the cycle for this stock is closer to its high than its low. SP low was less then 30c, 3 or 4 years ago so as a cyclic company it has done its job.

whipit
15-07-2014, 07:15 PM
Had a conversation with the Managing Director BK Chiu, my understanding is that sections are selling well and CDI are likely to sell more sections than last financial year. However profit growth might not be what you expect as the average value and profit margin per section is likely to be reduced because of the locations of the sections presently sold. Also CDI are finding it harder to purchase land for a price they consider acceptable. So maybe the cycle for this stock is closer to its high than its low. SP low was less then 30c, 3 or 4 years ago so as a cyclic company it has done its job.

This has been playing on my mind a little bit. A company like this is very difficult to know what their future earning look like. You can get a feel for how efficiently they can turn a piece of land into a section, but it is very difficult to predict the demand for a section in different locations. Even with good due diligence on their land bank. Some of it is going to be hot, some of it not?

Vaygor1
01-08-2014, 03:53 PM
2014 H1 financials out yesterday. https://www.nzx.com/companies/CDI/announcements/253326

Yet another great result. Profit up 43.3%, EPS up 42% (due to Dividend Reinvestment Plan) and income up 64% compared to same period last year. How undervalued can this stock get? Bought some more this morning.

I do have some questions though, for I think that the board is playing down CDI's performance and future guidance for reasons unknown.

With the sterling H1 result how on earth can they say they are only on track to achieving a similar full year result as last year? I expect them to do much better, and to achieve only last years result by 31 December 2014 would reflect a dismal 2nd half performance given the current figures.

Dividend reinvestment plan from end of last financial year. MCK took the cash. Have they reached their overseas shareholding cap?
Dividend payout was about $5.1 million and they bought 4.1 hectares in Auckland ($4.5million?). Cash as against December has only moved down $2million.

Land Bank property under current assets has moved down by $18M, over 50%. It looks like they have lots of land ready to develop under their non-current assets but this raises questions.

For each land parcel of undeveloped land in their land bank (or on average at least):
1. What is the time frame to develop the land to become a current asset?
2. What is the cost to move it?
3. What is the expected sales revenue down the track?

This information is needed by all shareholders to continue to have confidence in the board imho.

They have the cash to develop and acquire more land for sure. It looks like the development property is there but not much of it is ready to sell. So without further info I want to see CDI get moving, develop what they've got, and quickly or they will run out of saleable stock.

Thoughts anyone?

Lizard
01-08-2014, 06:23 PM
I have plenty of confidence in the board. However, the market for land is cyclical. I think they are being cautious in their second half forecast and will outperform. But I also think that by the time that becomes apparent to the market, it may also be apparent that the cyclical peak for land sales is past, so the price might continue to track sideways.

I guess from some investment perspectives, investing in a cyclical is more worthwhile when the share price behaviour is more volatile than the underlying commodity. For the lazy investor, less volatile is good.

Vaygor1
03-08-2014, 06:01 AM
Thanks for your post Lizard. Much appreciated as always. :)

I have confidence in the board too. Perhaps I should have used the word trust; and despite my statement I do in fact trust them. Having resided/worked in Singapore for 3 years out of the last 8, and given the business sector I worked in, I had reasonable exposure to the Hong Leong Group and as such have no issue there at all.

Having said that, I do think the board of CDI and MCK need to continually counter the negative NZ perception of Asian ownership and a bit more transparency wouldn't hurt, and may even improve the stocks liquidity/public profile issue.

For instance, I wouldn't expect RYM to state they 'bought 4.1 hectares of land in Auckland' and leave it at that. Even if they couldn't name the exact location (ie for reasons of confidentially) then they would still give a better indication of the site's whereabouts and an approximation of how many units/beds they intend to convert from the purchase. They also declare amongst other things their future build-rate targets and an array of market data regarding the projected market size of their customer base. I can't find anything comparable coming from CDI.

Reading what I can from CDI's own figures, if the current number of sections sold per month doesn't drop, they will run out of saleable stock by this November.

As for the share price, roughly in my head (given the hour of this post), if CDI's full year result reflects only a 25% increase in EPS (and I expect at least that as H1 was up 42%) , then when I buy a share in CDI for $0.50 I am effectively purchasing the land they own for 1/2 price.

pennyacw
09-03-2015, 01:54 PM
Does any one know where an AGM presentation or meeting minutes are provided. I have had a look on NZX, but they have very poor facilities on historical content.

CDI look attractive in terms of financial metric, however, like Vaygor has decribed it is the qualitative content that really lets them down, which has held me off from investing. They have great ROIC as a business, but very little information on how they achieve this.

Another concern I have is the high shareholding of MCK. Can we trust that the CEO and MCK's interest are aligned with a regular investor like myself, or will they simply issue higher dividends when MCK need a bit of cash etc.

Anyway, not trying to downgrade how good this company looks, but the limited information they provide to investors is a tad frustrating.

Vaygor1
08-04-2015, 11:29 AM
Does any one know where an AGM presentation or meeting minutes are provided. I have had a look on NZX, but they have very poor facilities on historical content.

CDI look attractive in terms of financial metric, however, like Vaygor has decribed it is the qualitative content that really lets them down, which has held me off from investing. They have great ROIC as a business, but very little information on how they achieve this.

Another concern I have is the high shareholding of MCK. Can we trust that the CEO and MCK's interest are aligned with a regular investor like myself, or will they simply issue higher dividends when MCK need a bit of cash etc.

Anyway, not trying to downgrade how good this company looks, but the limited information they provide to investors is a tad frustrating.

I can't find anything on CDI's AGM presentation material or MOMs either. I wish there was something readily available for all shareholders. With a lack of info out there I can't help but feel that MCK hold a distinct advantage over the rest of us plebs.

Their full year result (announced mid-February) disappointed me given where they sat at H1. But on the over all scheme of things, it was still a good result showing reasonable growth.

That being said, I dare say that this company (or at least its shareprice) looks like it might be FINALLY starting to get some well-deserved recognition... Share price has moved up to 61 cents with a fairly constant amount of sustained upward pressure at reasonable volumes. Still at least a 25% discount on a fair Shareprice given their balance sheet, cash position, and profitability imho.

Disc: Still holding.

DarkHorse
26-05-2015, 08:15 PM
Thanks for the helpful info fool :)

Vaygor1
27-05-2015, 09:04 PM
Cdi only produce residential sections. This is not a company developing retirement villages, so Units/beds reporting is not going to happen.

Hi Greater Fool and thanks very much for the link to the ASM Presentation. Much appreciated.

You may need to re-read my post re beds/units but this was referring to Ryman Healthcare (RYM) which I used only to serve as an example of reporting on timeframe to convert. For CDI I know this is residential developments but I still think they could provide a bit more information on the anticipated cost and time period to convert each development into xx units of saleable sections.

I think the graph in CDI's ASM presentation on net NZ migration figures is a useful indication of demand for their future/ongoing developments so I am pleased to see this in there.

Disc: Still holding.

BlackPeter
29-12-2015, 10:36 AM
Anybody still following this stock?

SP currently somewhat soft (on very low volume) ... and passed the famous cross of death in early December. On the other hand: real estate is still quite tight (and likely to stay so for years to come); They recently started to sell the first stage of their new Christchurch development (Preston) and their Rolleston sales seemed to have gone pretty well.

As well - their SP had last year a great spike after the release of the annuals ...

So - the question is: will they surprise the market in February with another good annual result or is the real estate party over for the next couple of years?

Views?

Discl: holding (a wee package - bit concerned about the liquidity to buy much more ...)

Vaygor1
29-12-2015, 12:23 PM
Anybody still following this stock?

SP currently somewhat soft (on very low volume) ... and passed the famous cross of death in early December. On the other hand: real estate is still quite tight (and likely to stay so for years to come); They recently started to sell the first stage of their new Christchurch development (Preston) and their Rolleston sales seemed to have gone pretty well.

As well - their SP had last year a great spike after the release of the annuals ...

So - the question is: Will they surprise the market in February with another good annual result or is the real estate party over for the next couple of years?

Views?

Discl: holding (a wee package - bit concerned about the liquidity to buy much more ...)

I share your concern regarding liquidity, and see it being low due to 1,2, or all 3 of the following reasons:
* They have such a low public/NZX profile
* They entered the NZX through the back door
* Negative perception of MCK, their cornerstone shareholder - ultimately Asian owned/influenced.

It is good to see they have lifted their game in forecasting and information sharing but still some further improvement needed here imho.

I hope they surprise the 'market' with another great result in February (or a revised upward guidance before then) and I think there is a reasonable chance this may occur. I put the word market in inverted commas because for this stock, it still seems to be small… hence the liquidity problem.

Given the time required to convert newly acquired land into saleable residential developments, I don't see 2-3 year property cycles impacting their real performance anywhere near as much the market perception the same has on the SP.

Based on my homework on CDI around August last year, I concluded CDI were worth circa $0.75/share (assuming reasonable NZX buy/sell liquidity) and since then their results have only improved.

Disc: Still own a sizeable holding. Have not bought or sold any for a long a time.

Vaygor1
22-02-2016, 04:15 AM
And another great result. This released on Friday just gone...

FLLYR: CDI: CDI: 2015 Results Announcement

CDI
19/02/2016 15:20
FLLYR
PRICE SENSITIVE
REL: 1520 HRS CDL Investments New Zealand Limited

FLLYR: CDI: CDI: 2015 Results Announcement

CDI releases its audited financial statements for the year ended 31 December
2015 together with its Directors' Review and Press Release, the text of which
follows below:

DIRECTORS' REVIEW

Financial Performance

CDL Investments New Zealand Limited ("CDLI") is pleased to report a profit
after tax of $17.5 million for the year ended 31 December 2015, an increase
of 18.8% from the previous year (2014: $14.7 million). This result is the
sixth consecutive year of profit growth and a record profit for the company.

Profit before tax also increased to $24.2 million (2014: $20.5 million).
Property sales & other income totaled $47.6 million (2014: $44.2 million)
with the number of sections sold in 2015 at 255 (2014: 248).

Shareholders' funds as at 31 December 2015 increased to $140.3 million (2014:
$128.5 million) and the Company's total assets stood at $142.7 million (2014:
$130.5 million). The net tangible asset per share (at book value) was 50.8
cents (2014: 46.6 cents).

Dividend Announcement

Reflecting the continued level of profitability, the Company has resolved to
maintain its fully imputed ordinary dividend at 2.2 cents per share payable
on 20 May 2016. The record date will be 6 May 2016. The Dividend
Reinvestment Plan will apply to this dividend.

Land portfolio

At 31 December 2015, the independent market value of CDLI's land holdings was
$265.0 million (2014: $206.0 million). CDLI's accounting policies require
the company to carry the value of its land portfolio at the lower of cost or
net realisable value and at 31 December 2015, the land portfolio at cost was
$126.6 million (2014:$ 97.0 million).

CDLI acquired a further 4.1 hectares of land in Auckland during the year.

Summary and Outlook

Strong customer demand for high quality residential sections continue to
underpin CDLI's results and this is being reflected in both increased revenue
and profitability. The Board and Management are therefore focused on growth
as well as meeting future demand expectations with supply in a sustainable
and sensible way. With sales having commenced at Prestons Road, Christchurch
and Greville Road, Auckland, 2016 should prove to be another profitable year.

Management and staff

On behalf of the Board, I thank the Company's management and staff for their
hard work during 2015 to deliver this outstanding result.

Wong Hong Ren
Chairman
19 February 2016

**MEDIA RELEASE**

CDL INVESTMENTS NEW ZEALAND REPORTS RECORD PROFIT FOR 2015

Property development company CDL Investments New Zealand Limited (NZX: CDI)
today reported its results for the year ended 31 December 2015.

CDI increased its profit after tax by 18.8% to $17.5 million with property
sales & other income increasing by 7.8% to $47.6 million over the previous
twelve months.

"It is very pleasing to report a sixth consecutive year of increased
profitability and even more pleasing to report a record profit," said
Managing Director Mr. B K Chiu. "The result is underpinned by continued
strong demand for residential sections and we believe that this level of
demand will continue through 2016".

CDI's geographically diverse land portfolio was independently valued at
$265.0 million at 31 December 2015 and the company also acquired an
additional 4.1 hectares of land in Auckland during the year.

CDI's Board resolved to maintain its dividend at 2.2 cents per share fully
imputed which would be paid to shareholders on 20 May 2016. The Record Date
would be 6 May 2016 and the Dividend Reinvestment Plan would apply to this
dividend.

With regard to 2016, Mr. Chiu said that CDI would be focused on growth as
well as meeting future demand expectations with supply in a sustainable and
sensible way.

"We have commenced sales at our Prestons Park (Christchurch) and Greville
Road (Auckland) subdivisions and these, together with sales from our other
developments, should ensure that 2016 will be another profitable year", he
said.

Summary of results:

--Profit after tax = $17.5 million (2014: $14.7 million)
--Total revenue & other income = $47.6 million (2014: $44.2 million)
--Shareholders' funds = $140.3 million (2014: $128.5 million)
--Total assets = $142.7 million (2014: $130.5 million)
--Nnet tangible asset value (at book value)= 50.8 cents per share
(2014:46.6cps)
--Earnings per share = 6.33 cents per share (2014:5.35cps)

About CDL Investments New Zealand Limited:
CDL Investments New Zealand Limited (CDI) has a proud track record of
acquiring and developing residential sections in New Zealand for two decades.
With a focus on creating and developing a range of high-quality residential
sections to New Zealanders, CDI has over the past twenty years successfully
completed numerous subdivision projects in Auckland, Hamilton, Tauranga,
Hastings, Havelock North, Taupo, Nelson, Christchurch, Rolleston (Canterbury)
and Queenstown. CDI is a majority-owned subsidiary of NZX-listed Millennium &
Copthorne Hotels New Zealand Limited.

ENDS

Issued by CDL Investments New Zealand Limited

Enquiries to:
B K Chiu, Managing Director
(09) 353 5058
End CA:00277999 For:CDI Type:FLLYR Time:2016-02-19 15:20:58

blackcap
22-02-2016, 07:15 AM
I saw that on Friday and thought... well done, very nice way to end the year. Could have increased the dividend to 2.4 cents or even 2.5 I thought just to sweeten the deal but all in all very happy. Not sure if the SP is going to go anywhere though... seems to be stuck between 58 and 62 for eons now :)

BlackPeter
24-02-2016, 05:51 PM
Have to agree. Land portfolio worth $265 million. Market cap (at 62 cents) $171 million. Gives you the land with discount and the company for free.

Great performance, great value - accumulated a handful more over the last 3 days ...

BlackPeter
16-03-2016, 06:00 PM
Anybody noticed today's trading depth? Nearly 1.6 million shares changing hand - and orders for another 500k shares (at 62 and 63 cents) still waiting to be filled. Highly unusual depth for this stock ... something going on?

Vaygor1
20-03-2016, 11:04 PM
I am hopeful it will finally get the recognition it deserves. Year on year gains with relatively little share price movement over the same time frame. With their recent release of FY Ending 31-Dec-2015, here are the metrics:

7949

Those Book Value figures are unrealised profits. Some hidden value there when comparing it to the independent land valuations. Not sure why they didn't increase their divvy this year.

Looking at the TA bit, The 50 Day EMA just formed a golden cross with the 200 day EMA. MACD is comfortably in positive territory, volume up too.

7943

So FA looks good, TA looks good. It will be an interesting few weeks.

Disc: Still holding. Been holding for ages now and accumulating slowly with the DRP.

BlackPeter
21-03-2016, 08:43 AM
We'll see, but agree - the pattern looks promising, the recent depth is quite unusual - and hey, how often can you buy a company where the value of the land bank is already higher than the market cap?

Potential drawbacks are obviously (normally) limited liquidity, though the recent weeks looked much better ... and the general risks of an inflated housing market - though I think that these are manageable and oversee-able, given that their land bank is in the population centres (and people need to live somewhere) and not in the speculative holiday spots ...

Applied just out of fun Graham's formula to CDI based on 33% CAGR since 2010 and FY2015 EPS of 6.3 cents. This results in a "share value" of more than $4.60 per share, a bit more if we assume that their 2016 earning path follows recent trends (upwards). Obviously - this is just one of many data points and obviously they can't hold this amazing growth rate forever. On the other hand - they are still a quite small fish in a big pond, i.e. midterm do I see for them just the sky as limit.

Discl: holding and patiently waiting for the markets to wake up ...

forest
21-03-2016, 09:54 AM
Hi BP, I see CDI as a cyclical company and coming up with a CAGR rate from 2010 wont give you the full cycle. But I suspect you knew that. :)

macduffy
21-03-2016, 10:05 AM
We'll see, but agree - the pattern looks promising, the recent depth is quite unusual - and hey, how often can you buy a company where the value of the land bank is already higher than the market cap?


This seems to be the case quite often over the years with this company! Agree, though, should be good buying for the patient investor.

:mellow:

percy
21-03-2016, 10:07 AM
Always an interesting company. I held it a good number of years ago and just when it looked very exciting, section sales stopped.
I now think the nature of the business is lumpy.That is, they buy land,then have to develop it,and then sell sections.So the time from start to finish is years.In the meantime companies such as Ebos are turning over their stock more than 10 times a year.

BlackPeter
21-03-2016, 10:31 AM
Hi BP, I see CDI as a cyclical company and coming up with a CAGR rate from 2010 wont give you the full cycle. But I suspect you knew that. :)

Hi Forest, of course you are correct - it is just a bit more difficult to dig out older numbers ... and I wonder how meaningful they would be anyway due to various restructures (and I think there was as well a backdoor listing) before this time ...

However - lets be really negative and assume that they just had their 6 good years followed by 6 years with Zero in average growth (highly unlikely), than the overall CAGR would still come out with something like 15% and the Graham formula computes a SP value of $2.44;

And don't misunderstand me ... I never ever take these numbers as gospel (and neither should anybody else), the only thing I take from them is that the share price has a lot of headroom for potential growth ... remember - current SP is 62.5 cents ...

Vaygor1
26-03-2016, 06:50 PM
I have never quite seen this before.

A member of the the public (Adrian Ho) has acquired enough CDI shares to cross the 10% threshold of CDI ownership.

By NZX definition, this means he is suddenly no longer allowed to be considered a member of the public regarding CDI ownership.

This in turn means CDI's public ownership has dropped below 25%, the minimum limit to allow CDI to continue trading under the NZX rules. Public ownership is now only 23.1%

CDI, as a result has been granted a 12 month waiver from the rule(s), and must report shareholder spread quarterly.

Total shares issued is 276.1 million as at 1-March-2016
23.1% = 63.68 million shares.
25% = 69 million shares.
Amount required to be made public to satisfy the NZX rules is 5.3 million shares.
Looking at the top 20 shareholders, the only entity in reality with sufficient volume to sell to fix this is MCK

7950

Questions (kind of rhetorical).

If this doesn't correct over time, will MCK be forced to sell some of it's CDI holding?

Given the poor trading liquidity of the stock, would this cause a significant market overhang?

What happens if Adrian Ho (or other non-public entity, if any, by NZXR definition) scoops up whatever MCK might have to sell, thus continuing the rule breach (but fixes the potential overhang I suppose)?

Does this then mean that MCK can be forced by the NZXR into taking the dividend instead of opting for shares under the DRP scheme timed around the end of May this year?

Could this, in turn, effectively force CDI into not retaining sufficient enough earnings it's Board may have desired?

There are more questions that lead on from these I am sure.

Reference: https://www.nzx.com/companies/CDI/announcements/279703

forest
26-03-2016, 07:46 PM
b. as at 4 March 2016, CDI has approximately 2,830 shareholders who are Members of the Public, holding approximately 23.1% of the ordinary shares. NZXR is satisfied that CDI will maintain a spread of security holders which is sufficient to ensure a liquid market;

Rule 5.2.3 A Class of Securities will generally not be considered for Quotation on the NZSX or NZDX unless those Securities are held by at least 500 Members of the Public holding at least 25% of the number of Securities of that Class issued, with each Member of the Public holding at least a Minimum Holding, and those requirements are maintained, or NZX is otherwise satisfied that the Issuer will maintain a spread of Security holders which is sufficient to ensure that there is a sufficiently liquid market in the Class of Securities.

Hi Vaygor1, it seems the requirement of the 25% public holding of shares and 500 members with minimum holdings is to assure an sufficient liquid market as pointed out above.
Although liquidity for CDI shares is limited I think it is not that low that it will be forced to stop trading. CDI is not quit making the 25% of public holding but the other requirement is met by more then a factor of 5.
If after a year the situation is more or less the same I would expect an extension of the exemption.

Vaygor1
26-03-2016, 08:07 PM
Hi Forest.

I agree with you 100%, but the issue is more pertinent for MCK holders I guess. It must almost be a dead cert that MCK will be paid the dividend.

http://www.dictionary.com/browse/dead-cert …. <--- Not sure if this is a non-kiwi saying. :)

I do not hold or follow MCK at all. But if I did, would this info/knowledge be of any use to me at all? Probably not, but the question begs I suppose.

I thought about putting a link to these latest posts on the MCK thread but that thread is unbelievably quiet, not really worth the trouble.

BlackPeter
27-03-2016, 09:02 AM
My knowledge re MCK is quite limited (e.g. what do they want to get out of their CDI investment), but maybe this is the time to do a bit of research.

At this stage CDI seems to be for them a good place to store wealth under book value - and as long as this is what they want to do, things are unlikely to change.

Obviously - at some stage they might want to realise their wealth, and in this case I would see two sensible strategies for them:

1) Keep accumulating and launch at some stage a take over for the reminder. As soon as they own the company completely, they could sell it (or its assets) for its (higher) underlying value.

2) The other way to realise their wealth would be to increase liquidity in CDI shares. At this stage the demand is small, given that many investors just shy away from a share which is hard to sell, if they need the money. A well managed partial sale of their CDI holding (still maintaining their majority) could in my view increase demand and share value. I.e. they would get the money for the shares they sell plus an increased share price for their remaining holding.

Both options (take over or increased liquidity) sound like a win-win to me for everybody, but as long as MCK don't need their money, is patience (and enjoying the reasonable dividends) in my view the best strategy for minority share holders.

GTM 3442
27-03-2016, 05:44 PM
Interesting thread.

But the ownership is confusing me.

There is MCK which owns and runs the Millenium/Copthorne/Kingsgate hotel chains in New Zealand.

It also owns (some of?) CDL, which is a New Zealand residential property developer.

On the NZX website, code CDI takes me to Code CDI - CDL Investments
On the NZX website, code CDL takes me to Code CDI - CDL Investments
On the NZX website, code MCK takes me to Code MCK - Millenium & Copthorne Hotels

Can some kind person clarify this for me - who owns what.

Thanks (scratches head)

Snow Leopard
27-03-2016, 10:16 PM
Prior to 27-Jan-2006 (ie after this thread was born) what is currently
Millennium & Copthorne Hotels New Zealand Limited which has the code MCK

was called
CDL Hotels New Zealand Limited and had the code CDL

This owns about two thirds of the shares in
CDL Investments New Zealand Limited which has the code CDI.

Best Wishes
Paper Tiger

PS: Both CDI & CDL have 'prior history' but that is hopefully not relevant.

Vaygor1
28-03-2016, 07:25 AM
Further to PT's post, the names used for the NZX listed company with the code CDI aka NZX:CDI are …...



CDL Investments Limited
Commonly used


CDL New Zealand Investments Limited
Registered name at the NZ Companies Office. Refer https://www.business.govt.nz/companies/app/ui/pages/companies/249046


CDI
NZX Stock Code and is also commonly used


CDLI
Used by the company itself in its latest announcement. Refer https://www.nzx.com/companies/CDI/announcements/277999


CDL
Used mistakenly by some to mean NXZ:CDI due to past history and its similarity to the names above. Example here that is definitely CDI http://www.propbd.co.nz/cdl-launches-prestons-park/

NZX:CDL is now NZX:MCK who own 2/3 of CDI.


CDLIL
Seen this at the odd time too.



Phew…

As PT alluded, CDI went by other names going back well over a decade now and under very different circumstances compared to today, and with different people (ratbags) in control; a checkered past that is clearly ancient history given the last 7+ years. Refer bottom 2/3 of my ST post about 20 months ago... http://www.sharetrader.co.nz/showthread.php?873-CDL-CDI-Another-Great-Result&p=491571&viewfull=1#post491571 which refers to Chinese ownership but CDI via MCK is actually Singaporean owned by the Hong Leong group.

Vaygor1
28-03-2016, 07:46 AM
My knowledge re MCK is quite limited (e.g. what do they want to get out of their CDI investment), but maybe this is the time to do a bit of research.

At this stage CDI seems to be for them a good place to store wealth under book value - and as long as this is what they want to do, things are unlikely to change.

Obviously - at some stage they might want to realise their wealth, and in this case I would see two sensible strategies for them:

1) Keep accumulating and launch at some stage a take over for the reminder. As soon as they own the company completely, they could sell it (or its assets) for its (higher) underlying value.

2) The other way to realise their wealth would be to increase liquidity in CDI shares. At this stage the demand is small, given that many investors just shy away from a share which is hard to sell, if they need the money. A well managed partial sale of their CDI holding (still maintaining their majority) could in my view increase demand and share value. I.e. they would get the money for the shares they sell plus an increased share price for their remaining holding.

Both options (take over or increased liquidity) sound like a win-win to me for everybody, but as long as MCK don't need their money, is patience (and enjoying the reasonable dividends) in my view the best strategy for minority share holders.

Both excellent options worthy of board consideration in my totally biased view. :cool:

I have a 3rd option. Lobby to the NZX to not renew their waiver in 1 year from now. The rules are the rules and are there for a reason (as are most waivers too).

CDI are not entirely blameless themselves. Their predicament is attributable in-part (or largely?) to MCK almost-constantly exercising their rights under the DRP scheme year after year. As we all know MCK and CDI's Board are closely aligned. Further to this Adrian Ho the now 10% shareholder is Singaporean as is the Hong Leong group the ultimate beneficiary of CDI's ownership via MCK. Ref https://www.business.govt.nz/companies/app/ui/pages/companies/249046/shareholdings


Coincidence?

But regardless, why cant CDL undertake a bonus share issue to all public shareholders to put this right? They have broken the rules after all, excuses or not.

This would increase liquidity by virtue of the number of publicly held shares, and the positive publicity generated by undertaking the exercise which I am sure would attract headlines.

win win win.

Vaygor1
28-03-2016, 03:00 PM
I don't think advocating DELISTING is going to make the shares MORE liquid.


Maybe I'm missing something, but if trading is halted, I think it may be a bit difficult to delist. It would however drive CDI to act.


How does this fix the problem?
All shareholders are treated equally. Any bonus issue will apply to ALL shareholders pro rata.
It really makes it worse since the majority shareholder would INCREASE, with a bonus issue, its overall percentage of shares held by virtue of that majority holding.
I think you are confusing free float shares as somehow being "public shares", and due special treatment.

Not so. A bonus share issue to public shareholders would be a very real option open to CDI, and may well be an approach that would benefit them… while potentially being perceived as an apt 'penalty' by NZXR and public shareholders.


What rules have been broken, by whom?

Rule 5.2.3 by CDI.
Refer https://www.nzx.com/companies/CDI/announcements/279703

CDI's 2014 Annual report states Adrian Ho owned 9.68% as at 28-Feb-2014
This means the breach would have occurred between 28-Feb-2015 and 4-Mar-2016.
CDI therefore have had well over 12 months to keep their eye on it, and potentially manage the situation, in which Adrian Ho has been under no obligation to make a SSH notice since his last disclosure on 12-Nov-2014 of 9.66%

blackcap
28-03-2016, 03:40 PM
Could it be that they CDI are playing the long game with the intent to delist.... thereby MCK and Ho can pick up the remainder of the shares for a lot less than they currently could? I could be wrong but its up to CDI to choose to be listed or not is it not?

I do not see how the latest problem is on of CDI's though. They cannot control who buys and sells shares and if a member of the public wishes to purchase shares (Ho) then there is nothing CDI can do to stop him is there?

I do not think a bonus issue to "public shareholders" would be legal. In contravention of the companies Act. All shareholders would have to participate so that the shareholdings remain the same. What they could maybe do is pay a bonus dividend in shares to the "public shareholders" and pay the large holders in cash. That would rectify the 25% problem...

GTM 3442
28-03-2016, 04:37 PM
Thanks to all for the responses. Much clearer now.

Vaygor1
29-03-2016, 12:38 AM
Could it be that they CDI are playing the long game with the intent to delist.... thereby MCK and Ho can pick up the remainder of the shares for a lot less than they currently could? I could be wrong but its up to CDI to choose to be listed or not is it not?

They can delist with an exemption to their breach in place, and to correct my earlier statement, possibly even without it (which would surprise me). But either way, in order to do so, refer this recent case. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11559804

NZX Listing Rule 5.4.1 states that: "An issuer may request ... by not less than one month's prior written notice to NZX, that it cease to be listed or that some or all of its securities cease to be quoted."

The NZX may impose the condition that shareholders are required to approve the transaction with only those holding 10 per cent or less of the company eligible to vote.

... which means, under the current circumstances, MCK and Adrian Ho are not allowed to vote to delist if NZXR so choose.



I do not see how the latest problem is on of CDI's though. They cannot control who buys and sells shares and if a member of the public wishes to purchase shares (Ho) then there is nothing CDI can do to stop him is there?

UPDATE.. I didn't really answer this question properly in my initial response Blackcap, so here is my update in brown text.

CDI can't control how many shares Adrian Ho buys, but the NZX can.. eventually.. if he buys too many… it's called a takeover.. but at some point long before a takeover, MCK and Adrian Ho will somehow need to be held jointly responsible to keep their combined shareholding under 75%…. surely?.

MCK (joined at the hip with CDI) are, and have been, in control of how many shares they own for a very long time. Via the DRP they could have started opting for cash instead of shares long ago. So now that they are in breach, I cannot see the point of having a rule if it is allowed to continue breached year after year with no penalty.

So for an ongoing breach, in terms of potential remedy involving a bonus share issue to minority shareholders…
… My understanding is it is quite possible, but happy to be corrected. There are 2 conditions:
1. The condition where those holding in excess of say 10% or their associated entities, consent to a bonus issue that excludes them, or
2. With sufficient notice in advance, notify those with a certain size of holding, or even notify a specific identity if their holding meets certain conditions, that they will not be entitled to participate. This would give sufficient time for the non-qualifying entity(s) to get out of the position that prevents them from participating.

This recently happened in ALF buying up small parcels (with 3 months notice) whether the small parcel holders liked it or not. i.e. Either expand your holding or lose it. I am reasonably sure (but not 100%) the same condition can be imposed in some fashion the other way around. i.e. qualifying for a bonus share issue.


I do not think a bonus issue to "public shareholders" would be legal. In contravention of the companies Act. All shareholders would have to participate so that the shareholdings remain the same. What they could maybe do is pay a bonus dividend in shares to the "public shareholders" and pay the large holders in cash. That would rectify the 25% problem...

I am not sure how the law might differentiate between 'public' and 'non-public' shareholders (as defined by the NZXR) in this respect, however my response immediately above is a method that does not make that differentiation. I don't think that MCK/CDI being forced to act in order to comply with the rules they agreed to upon listing would be illegal. Your scenario of cash to the big holders & shares to the minority holders would likely solve or alleviate the problem, as would BP's option 2 from yesterday.

Interesting topic. I welcome more light on it.

blackcap
29-03-2016, 08:31 AM
1. The condition where those holding in excess of say 10% or their associated entities, consent to a bonus issue that excludes them, or
2. With sufficient notice in advance, notify those with a certain size of holding, or even notify a specific identity if their holding meets certain conditions, that they will not be entitled to participate. This would give sufficient time for the non-qualifying entity(s) to get out of the position that prevents them from participating.

This recently happened in ALF buying up small parcels (with 3 months notice) whether the small parcel holders liked it or not. i.e. Either expand your holding or lose it. I am reasonably sure (but not 100%) the same condition can be imposed in some fashion the other way around. i.e. qualifying for a bonus share issue.


.

The above points 1 and 2 are just not going to happen. MCK control the board and there is no way they would suffer unduly themselves to the benefit of the minority shareholders.
Nice in theory but in practice a no go.

Vaygor1
29-03-2016, 09:47 AM
The above points 1 and 2 are just not going to happen. MCK control the board and there is no way they would suffer unduly themselves to the benefit of the minority shareholders.
Nice in theory but in practice a no go.

I agree that MCK would very likely prefer a different solution to this one.. but then again, stranger things have happened at sea.
It is an interesting one as to control (Adrian Ho, MCK, CDI, NZX, minority shareholders) and interesting to see how/where this ends up eventually.
If the NZXR just rolls over the exemptions, it is the minority shareholders that might end up suffering in the long run.

Vaygor1
29-03-2016, 02:53 PM
In my opinion, if the waiver is not continued, the minority shareholders will be the losers on this.

This is not a new situation (allowing for changes in personnel) for MCK (formerly CDL Hotels NZ Ltd).

7953

John Henderson was an independent director of Kingsgate International, and was appointed to look after the interests of
minority shareholders during the takeover. John Henderson is an independent director of CDL Investments.
If possible, you may like to attend the upcoming ASM and have a chat to John over a sausage roll and a club sandwich.

Wow!! What a post. I think you should change two letters of your name to become Greater Good. :)

Be interesting to know what may have changed in the NZX rules since 2004. I just don't know if one can do today, what one could do 12 years ago on this issue.
With the waiver in place, it allows Adrian Ho to keep building his holding for the next 3 months, with a SSH coming only after 30? Days of a 1% upward movement to him holding 10.66% of CDI.
Be interesting to know who bought the 1.6 million shares on 16-March-2016 after CDI knew of the issue. Refer BlackPeter's post http://www.sharetrader.co.nz/showthread.php?873-CDL-CDI-Another-Great-Result&p=611881&viewfull=1#post611881

I see in CDI's announcement on the subject "f. holders of the ordinary shares will not be disadvantaged by the granting of the waiver. Further, CDI has submitted, and NZXR has no reason not to accept, that it is in the best interests of holders of the ordinary shares to allow the ordinary shares to remain Quoted on the basis that the holders will remain entitled to the protections afforded by the Rules, and a constitution that reflects those protections"


ASM is in late May.. exact date and venue to be fixed.
Almost a necessity for me to attend I think and would look forward to a chat with John Henderson (and Roy Austin).
My initial thoughts being clarification on what protections are offered in the constitution that reflect the protections afforded by the Rules, and as Independent Directors, what are they able to do, or are planning to do to try and rectify the situation. Probably worth a phone call before the ASM I would think.

Thanks GF.

PS.... Personally, I prefer the diet conscious cup of tea and a vanilla wine biscuit. :)

BlackPeter
30-03-2016, 07:49 AM
Have seen Black Peters post and think it wild speculation. In my opinion just plain wrong, further I suggest the directors think this is a very good business, easy to operate, no debt, one employee, that delivers excellent cash returns in good times and can go into hibernation on the down side of the cycle very quickly. So, I doubt the wind up / loot speculation. And that means they will be very keen to keep CDL Investments close, and if that means taking it private, then so be it.
So, ease up on the the tilting at windmills, visions of windfall profits and consider the possibility that the waiver is in your interests as a minority shareholder, What MCK or Mr Ho do, is out of your influence, If you really think there is some conspiracy, there is the Wall Street Walk,

Hmm - obviously I have no intention to question the wisdom of a "greater fool" ... but just out of interest - do you read your own posts before you press the "post" button? Do you read other people's posts before "appraising" them?

You said that the post vaygor linked to (as below) be wild speculation. I copied the complete post for your convenience into the quote below. Can you help me to spot the speculation in it? I see only a statement of a number of facts and two questions ...


Anybody noticed today's trading depth? Nearly 1.6 million shares changing hand - and orders for another 500k shares (at 62 and 63 cents) still waiting to be filled. Highly unusual depth for this stock ... something going on?

BlackPeter
30-03-2016, 01:10 PM
Have seen Black Peters contribution #86, you quoted in post #90.........



and think it wild speculation. I suggest the directors think this is a very good business, easy to operate, no debt, one employee, that delivers excellent cash returns in good times and can go into hibernation on the down side of the cycle very quickly. So, I doubt the wind up / loot speculation. And that means they will be very keen to keep CDL Investments close, and if that means taking it private, then so be it.
So, ease up on the the tilting at windmills, visions of windfall profits and consider the possibility that the waiver is in your interests as a minority shareholder, What MCK or Mr Ho may do, is out of your influence, If you really think there is some conspiracy, maybe you could have a lay down after your cup of tea and biscuit. Or maybe get a cat.

Lets see: Merrian-Webster defines "speculation" as "ideas or guesses about something that is not known".

I mentioned a number of "options" which the board may or may not choose ... not a speculation. It would have been a speculation if I would have "speculated" what the board would do, which I didn't.

You speculated however what you think the directors might think. Unless of course, you are one of the directors, in which case you wouldn't speculate but divulge insider knowledge :p. Nothing wrong with that (speculating, not the spilling of insider information), but I think you are just using the word "speculation" incorrectly.

Didn't further examine what you might mean with a "wild" speculation - is this the opposite of a "domesticated" speculation? ;)

But setting semantics aside ... I agree that your speculation (that the board might keep doing what it currently does) is as good (or bad) as the options I listed. I won't speculate here about the likelihood of the mentioned options and which of the speculations are wilder than others ....

I guess it all depends on what the board wants to achieve ... and this what I said in the post you quoted "depends what they want to do" - so maybe just read that again.

I assume (sort of a speculation ...) that you really just want to say that you believe that the board will continue with its strategy of accumulating and hiding wealth. Fair enough ... but why do you call other options "wild speculations"?

Discl: not a speculator ... just an (hopefully) "intelligent investor" :cool:

Vaygor1
31-03-2016, 05:32 AM
I suggest the directors think this is a very good business, easy to operate, no debt, one employee, that delivers excellent cash returns in good times and can go into hibernation on the down side of the cycle very quickly. So, I doubt the wind up / loot speculation. And that means they will be very keen to keep CDL Investments close, and if that means taking it private, then so be it.
So, ease up on the the tilting at windmills, visions of windfall profits and consider the possibility that the waiver is in your interests as a minority shareholder, What MCK or Mr Ho may do, is out of your influence, If you really think there is some conspiracy, maybe you could have a lay down after your cup of tea and biscuit. Or maybe get a cat.

I too was very surprised at your response GF.

I was sincere about your post preceding mine being a awesome post and very relevant and informative. I even added to your reputation for it, before I saw your responses via ICBM. Both the one before and the one after your edit.

I enjoyed your comment about sausage rolls and club sandwiches and only wished to reciprocate the humour. Honestly.

On top of that, I must have triggered something because all I want is to see CDI striving to adhere to the rules.
I have seen waivers from the NZX in the past when there should have never been a waiver, like they feel sorry for the predicament the company has found itself in.

If I portrayed a conspiracy (as you put it) I didn't view it as such but raised questions that I think are prudent ones to ask under the circumstances.

The Indépendant Directors should be jumping up and down to get CDI to act and fix this breach, which they (CDI and MCK) are perfectly capable of doing… maybe I can influence that… just maybe…., even if my holding is a trifling amount by comparison, I would like to think I have some voice given my holding.

Vaygor1
02-04-2016, 06:09 PM
Hi GF.

I saw your "hmmm.. how do I delete post", which has now gone. In any event I thank you for it. In my view you provide well thought out and informative posts. Other ST members that I highly regard on this web-forum, I see via your reputation-received comments, also think the same. Please keep 'em coming.

I shall attempt to be a little less speculative in the future too. I need tempering sometimes in this respect I think.

Best wishes,
Vaygor1.

podg
01-06-2016, 12:19 PM
Seems like quite a while since anyone posted something about CDL Investments. Is it me, or does a dividend paid in late May, part of a Dec 31 balance date result, seem a couple of months late? other listed companies paid dividends for the same period in March !!

beetills
01-06-2016, 01:25 PM
Never given much thought about it but now that you mention it,yes it does seem a long time to wait.

podg
01-06-2016, 01:46 PM
Seems like quite a while since anyone posted something about CDL Investments. Is it me, or does a dividend paid in late May, part of a Dec 31 balance date result, seem a couple of months late? other listed companies paid dividends for the same period in March !!

podg
02-06-2016, 05:05 PM
well, that depends on the entry point doesn't it, fool. I first bought CDI shortly after it took over Euronational. remember them? so that was 1992. I paid 7c, and then 10c and then 14c. thus, my div yield is tremendous.

Good to have all the facts before making any conclusions.

podg
03-06-2016, 12:53 PM
yes, I did know. which was I mentioned it. just wanted to know what others thought about that. cheers

blackcap
03-06-2016, 01:24 PM
Seems like quite a while since anyone posted something about CDL Investments. Is it me, or does a dividend paid in late May, part of a Dec 31 balance date result, seem a couple of months late? other listed companies paid dividends for the same period in March !!

Does it really matter though when a dividend is paid? It just means the company can utilise the funds for a bit longer. They pay the dividend annually, whether its May, April or July actually does not really bother me and does not impact one iota on the return I get from this company.

podg
03-06-2016, 02:37 PM
so why don't all companies with a dec 31 balance date pay any dividends 5 months later? why do the vast majority pay in march? surely there's a middle point somewhere? where both the company and shareholders can benefit.

blackcap
03-06-2016, 03:14 PM
so why don't all companies with a dec 31 balance date pay any dividends 5 months later? why do the vast majority pay in march? surely there's a middle point somewhere? where both the company and shareholders can benefit.

Thats just what CDI do. But either way it makes no difference to me the investor. There is no detriment to me in getting the dividend in May rather than April. I get my dividend in May each year.

podg
03-06-2016, 10:18 PM
Thats just what CDI do. But either way it makes no difference to me the investor. There is no detriment to me in getting the dividend in May rather than April. I get my dividend in May each year.

well, you could have two months of interest? or two months of funds reinvested?? just a thought

stoploss
04-06-2016, 07:01 AM
well, you could have two months of interest? or two months of funds reinvested?? just a thought

Two months of funds reinvested , if the shares go down you lose money this way ..... With the dividend presumably the company has this invested so making you more money .As pointed out if the dividend is the same date each year , splitting hairs here ...

beetills
03-08-2016, 09:43 AM
Looks like another positive result today with even better predicted.

BlackPeter
03-08-2016, 09:54 AM
HY results are out (https://www.nzx.com/companies/CDI/announcements/286675) and looking brilliant :t_up::

Operating profit after tax (1HY 2016) $15.95 million vs (1HY 2015) $8.51 million, up 87%
Operating profit before tax (1HY 2016) $22.16 million vs (1HY 2015) $11.70 million, up 89%
Revenue $42.78 million (2015: $23.89 million)
Net Asset Backing 54.4 cents per share (2015: 47.6 cents per share)

Outlook:

Sales activity in the year to date remains strong and this reflects continued demand in the major centres in which CDLI operates. The current level of sales activity should continue through into the second half of 2016 and will therefore be reflected in the company’s results. We expect to better our 2015 results this year.

Given that they made 2015's results basically already in the first half of this year, would I think the last sentence might qualify for the understatement of the year!

But hey - I like under-promising and over-delivering. Quiet achiever ... and no hype on the thread either. Whats not to like?

Discl: holding (goes without saying ...)

Vaygor1
03-08-2016, 11:31 AM
... looking brilliant :t_up::

.......

Whats not to like?

Agreed!

Maybe this result will provide CDI with the media exposure to boost its name and increase its NZX trading liquidity.
Only reason the share price has not risen more than 12% so far today is there are no sellers left with any real volume.

Oh.. just checked.. one seller with 10,000 shares wanting $1.50/share ... not an unreasonable asking price. :D

Disc: Patient holder. Still holding with no intention to sell.

blackcap
03-08-2016, 11:37 AM
HY results are out (https://www.nzx.com/companies/CDI/announcements/286675) and looking brilliant :t_up::

Operating profit after tax (1HY 2016) $15.95 million vs (1HY 2015) $8.51 million, up 87%
Operating profit before tax (1HY 2016) $22.16 million vs (1HY 2015) $11.70 million, up 89%
Revenue $42.78 million (2015: $23.89 million)
Net Asset Backing 54.4 cents per share (2015: 47.6 cents per share)

Outlook:


Given that they made 2015's results basically already in the first half of this year, would I think the last sentence might qualify for the understatement of the year!

But hey - I like under-promising and over-delivering. Quiet achiever ... and no hype on the thread either. Whats not to like?

Discl: holding (goes without saying ...)


Am I correct in thinking that you can extrapolate the FY out from the HY. Thus the FY NPAT could be in the range of $32 million which divided by 276m shares gives me an EPS of 11.5....
If that is the case anything under $1 is a bargain. What I do not understand is that in this property mad (if I may call it that) market this stock has not received more interest. I guess being tightly held does not help and liquidity is low.....

blackcap
03-08-2016, 01:58 PM
WOW just did a quick look at last years figures...

HY 15 NPAT $8.51
SHY 15 NPAT $8.99 FY $17.5m (where SHY = second half of year)

HY 16 NPAT $15.95 with the expectation that this will continue.

In theory share price should almost double from here.....

Vaygor1
03-08-2016, 03:50 PM
Maybe, both cdi and mck made the markets news on Radio NZ today. Probably a first for both.

http://podcast.radionz.co.nz/business/bus-mdr-20160803-1221-midday_markets_for_3_august_2016-048.mp3

(http://www.radionz.co.nz/audio/player?audio_id=201810700)

Yes they both made the news... thanks GF.
I couldn't get your link to work for some reason, but found it if I went here:
http://www.radionz.co.nz/tags/business
and clicked the 'Listen" button under Business Briefs.

Vaygor1
03-08-2016, 03:58 PM
WOW just did a quick look at last years figures...

HY 15 NPAT $8.51
SHY 15 NPAT $8.99 FY $17.5m (where SHY = second half of year)

HY 16 NPAT $15.95 with the expectation that this will continue.

In theory share price should almost double from here.....

Yes.. in theory.
According to my calcs, assuming widespread market recognition (theory again, and unlikely to occur) I get a share price over $2 per share.

DarkHorse
03-08-2016, 09:10 PM
Happy holder. Has anyone tried to calculate asset backing at market value?

blackcap
04-08-2016, 09:02 AM
Good to see some little bids at 77 and 76 pre open. I wonder why the market has for so long underrated this stock. I purchased my first lot way back in 2010 for 28 cents but even then that was undervalued (my opinion off course). Back to the question. Is it the liquidity? Or is it xenophobia? It cannot be the sector being out of favour because we all know what property has done. Of clutching at straws, a perceived risk because they are developers?
Anyone willing to hazard a guess? Because with 11 cents per share + earnings coming up for FY17 at 77 cents we are looking at a bargain are we not?

BlackPeter
05-08-2016, 10:18 AM
...
Back to the question. Is it the liquidity? Or is it xenophobia? It cannot be the sector being out of favour because we all know what property has done. Of clutching at straws, a perceived risk because they are developers?
Anyone willing to hazard a guess?
...


Well, yes to both. Have heard people saying that they don't like boards controlled by Chinese (or Asian) people ... and you might even find similar statements on sharetrader.

Obviously - low liquidity is a reason and in my view does justify some discount (but probably not that much). It is certainly not a good idea to commit a too large part of the portfolio to illiquid companies like CDI.

One other issue is that this company is controlled by MCK, the majority shareholder- and their agenda may or may not be aligned with the interests of minority shareholders. This (lack of control) justifies another discount ... but again, whether the size of the discount is justified is a different question.

Joshuatree
05-08-2016, 11:33 AM
I admit to knowing little about these two, but a quick look suggests that research is in order. Given their NTAs, P/Es and a reasonable profit their current price seems to have potential.
Is CDL under-priced do you think?

Nothing much has changed since 2004; always underpriced. Long time to wait for fair value to arrive and why would it now?

blackcap
05-08-2016, 11:42 AM
Nothing much has changed since 2004; always underpriced. Long time to wait for fair value to arrive and why would it now?

So what do you think is required for fair value to arrive?
I agree with Black Peters posting that it is a variety of factors holding the share price back. Xenephobia may be one, also forgot about the MCK control etc.
So maybe if CDI were to extract fair value they need to...
1. make the board more "white middle aged men" (sarcasm here but probably a big hint of truth behind the statement unfortunately)
2. open up the register
3. communicate better with shareholders

Anyone else willing to add to the list feel free.
I find it astounding that they have almost doubled H/Y profits, the outlook is for the same for FY 17 and the share price has moved but 10%.
Does this make it more "undervalued" than it was a week ago?

macduffy
05-08-2016, 01:10 PM
Both these companies - CDI and MCK - have been around for a long time and neither has ever had any market profile to speak of. Perhaps the major shareholder just isn't interested - for whatever reason. Doesn't need the publicity? Nor a higher shareprice? Nor the higher registry costs of more active market trading?
May be candidates for privatising at some stage ?

noodles
05-08-2016, 06:50 PM
So what do you think is required for fair value to arrive?
I agree with Black Peters posting that it is a variety of factors holding the share price back. Xenephobia may be one, also forgot about the MCK control etc.
So maybe if CDI were to extract fair value they need to...
1. make the board more "white middle aged men" (sarcasm here but probably a big hint of truth behind the statement unfortunately)
2. open up the register
3. communicate better with shareholders

Anyone else willing to add to the list feel free.
I find it astounding that they have almost doubled H/Y profits, the outlook is for the same for FY 17 and the share price has moved but 10%.
Does this make it more "undervalued" than it was a week ago?

4. Release the massive pile of imputation credits by issuing bonus shares
5. MCK should become a pure-play hotel operator. CDI shares owned by MCK to be distributed to MCK shareholders. This will increase liquidity
6. Pay a decent dividend or use cash pile to buy back shares to underlying resale value

blackcap
06-08-2016, 02:24 PM
Options 4 and 5 were quite forcefully put to the directors at the last ASM. The directors were rather taken aback.
This followed a discussion on the lack of liquidity and the NZX waiver re liquidity. ( forum discussion on this above ).

After the meeting ( over a sausage roll and a coffee ) at least one independent director showed some interest in investigating these options.

fool

Good to hear that shareholders (minority) are vocal about this. I have added to my stake recently and purchased for my partner as well a while back so it might be time to start attending some AGM's and start agitating about certain issues.
Thanks greaterfool for highlighting this and I was also unaware about the imputation credits that have been built up. Yes better release them than let them go to waste and if liquidity could be improved that would add massive value.
Macduffy, points noted and yeah I can understand the majority shareholder not really caring to much about the SP as long as the company performs well the value will always be their, either accruing which if bought out (privatised) will be theirs anyway.

BlackPeter
15-11-2016, 09:58 AM
Sort of wondering which impact (if any) the recent earthquakes will have on the Canterbury property market and CDI in particular? If we learn from the previous Christchurch Earthquakes, than some people might want to move away from the worst effected areas (i.e. parts of the Hurunui District and Kaikoura) - and picking the closest unaffected town as the new place to live might make sense for them.

Time to buy some more CDI shares?

Discl: holding;

beetills
30-01-2017, 11:54 AM
Share price rising nicely.
Good result coming up perhaps?

BlackPeter
30-01-2017, 12:14 PM
Share price rising nicely.
Good result coming up perhaps?

SP obviously not such a strong indicator given the low liquidity, but yes, given the amazing HY results and the positive outlook would I expect another outstanding result ...

The other question is obviously how the future looks - property prices seem to at least move towards some sort of plateau. However - property demand looks like to stay strong in the centers they operate in, so I could imagine in the coming year a slower growth rate, but it still should keep growing.

A somewhat quieter market could even be an opportunity to find some further development properties at more reasonable cost.

Discl: holding;

Vaygor1
30-01-2017, 04:22 PM
SP obviously not such a strong indicator given the low liquidity, but yes, given the amazing HY results and the positive outlook would I expect another outstanding result ...

The other question is obviously how the future looks - property prices seem to at least move towards some sort of plateau. However - property demand looks like to stay strong in the centers they operate in, so I could imagine in the coming year a slower growth rate, but it still should keep growing.

A somewhat quieter market could even be an opportunity to find some further development properties at more reasonable cost.

Discl: holding;

Yes BP. A good sign when a spike up appears about the same time the auditors and others get to see the FY results. :cool:

CDI's timeframe to convert land purchases into section sales is so lengthy, I would expect the increase in NZ property prices to reflect in increased earnings for CDI for a long time yet. Looking forward, perhaps a reduction in the number of sections sold per annum has more likelihood to slow things down than a reduction in profit/section-sold?

BlackPeter
30-01-2017, 04:36 PM
Yes BP. A good sign when a spike up appears about the same time the auditors and others get to see the FY results. :cool:

CDI's timeframe to convert land purchases into section sales is so lengthy, I would expect the increase in NZ property prices to reflect in increased earnings for CDI for a long time yet. Looking forward, perhaps a reduction in the number of sections sold per annum has more likelihood to slow things down than a reduction in profit/section-sold?

Like your thinking (though obviously - any correlation between auditors seeing unpublished results and SP spike would be purely coincidental) ... and yes, you are right - they had from memory in the last report still more than $100m worth of development properties on their books - and this is at book value (i.e. at the price they paid for it). I don't think they will soon run out of earnings opportunities.

podg
30-01-2017, 10:15 PM
If the timing of previous announcements are any indication, the FY numbers could be out on Friday. Will be interesting to see if a significant improvement in profit will be matched by a corresponding rise in the dividend. Just as interesting to see if the company has any plans to address shareholder concerns about the lack of liquidity.

blackcap
31-01-2017, 09:16 AM
Yes BP. A good sign when a spike up appears about the same time the auditors and others get to see the FY results. :cool:



Isn't that a bit naughty? :P :)

(goes something like this: Auditor to wife's/husband's brother "those CDI are looking a bit oversold the last few months aren't they"
Brother: "are you saying they are a buy?"
Auditor: would I suggest such a thing...wink wink nudge nudge.....

beetills
31-01-2017, 09:31 AM
Can be a bit dangerous acting on a wink.Reminds me of what George McGovern said after voting for the TONKIN RESOLUTION during the Vietnam war.
''Never to trade what i see as truth for a winking assurance in the backroom''''
Turns out he was correct,LB was full of b/s.

podg
08-02-2017, 10:14 PM
$300k of trade yesterday. About the highest value from one day's trade in the past 12 months. Almost a flood in CDL terms. Back to normal today ....$3k of trade.

podg
09-02-2017, 03:54 PM
and what must be an all-time high of 83 cents today. FY figures keenly awaited.

beetills
17-02-2017, 01:27 PM
Increase in dividend to 3c.Company appears to be travelling very well.

podg
17-02-2017, 01:41 PM
Increase in dividend to 3c.Company appears to be travelling very well.

indeed. tho no mention yet of any plans to increase liquidity or to use the imputation credits they have at their disposal. questions to be asked at the agm perhaps.

BlackPeter
17-02-2017, 01:45 PM
Yep, they raised the divvie. And while the second half was not as good as the first - their financials don't look shabby at all:

o Profit after tax $27.0 million (2015: $17.5 million)
o Profit before tax $37.5 million (2015: $24.2 million)
o Total revenue & other income $74.5 million (2015: $47.6 million)
o Shareholders' funds $161.8 million (2015: $140.3 million)
o Total assets $168.3 million (2015: $142.7 million)
o Net tangible asset value (at book value) 58.4 cents per share (2015:
50.8cps)
o Earnings per share 9.77 cents per share (2015: 6.33cps)

... and holding a land bank worth $297m. Incredible - if we just look at the land value would this company be already more worth than $1 per share - and it still sells at discounted prices in the early 80 cents.

blackcap
17-02-2017, 02:08 PM
... and holding a land bank worth $297m. Incredible - if we just look at the land value would this company be already more worth than $1 per share - and it still sells at discounted prices in the early 80 cents.

Thats the bit that caught my eye too BP... the value of the land. The divi up from 2.2 is a moot point for me but the increased earnings 10 cps after tax!! I mean and the company is trading at 84 cents. Crazy stuff. Seems like management is prudent enough as well by reading the commentary. Got plenty and will not be selling in any hurry.

Is the market finally cottoning on? Up to 89 now... (although this happened at the H/Y and then it fell down again)

Vaygor1
17-02-2017, 02:34 PM
... and holding a land bank worth $297m. Incredible - if we just look at the land value would this company be already more worth than $1 per share - and it still sells at discounted prices in the early 80 cents.

I agree, a massively discounted SP, but will it ever really move given their Shareholding structure/profile??... like to where it should be (which is over $2/share imo).

Things get a bit distorted due to the fact the book value they keep (as per their accounting policies) is so much lower than the real value...

Quote from the release "At 31 December 2016, the independent market value of CDLI’s land holdings was $297.0 million (2015: $265.0 million). CDLI’s accounting policies require the company to carry the value of its land portfolio at the lower of cost or net realisable value and at 31 December 2016, the land portfolio at cost was $117.8 million (2015:$126.6 million)."

So the land they own is worth $300M but on the books at under $120M.. just seems to be way too conservative for the books to reflect reality.

No mention of the number of Sections Sold anywhere in todays literature that I can find.

I am disappointed with the dividend. They are cash rich and sitting on significant imputation credits.
Last annual announcement NPAT up by 16% with an increase in dividend of 0.0%
This announcement NPAT up by 54% with an increase in dividend of 36%

So compounding the two years together we get NPAT up 78.6% with a corresponding dividend increase of only 36.4%.. less than half.
With this result I would expect a 3.5c/share full imputed dividend as a minimum.

Summary of results (just adding a few more years of history to BP's nice summary):

podg
17-02-2017, 09:23 PM
a rights/bonus issue or even just a bonus issue would go some way to improving liquidity and provide some value to shareholders through something other than what is a modest dividend.

blackcap
18-02-2017, 06:03 AM
a rights/bonus issue or even just a bonus issue would go some way to improving liquidity and provide some value to shareholders through something other than what is a modest dividend.

How would a bonus issue improve liquidity? The number of shareholder stays the same, company capitalisation stays the same as does the value of the company. I cannot see how that would improve liquidity at all? even a 1:1 bonus issue (doubling the amount of shares on issue will not improve liquidity)

Ie a 10,000 trade at $.80 is the same liquidity wise as a 20,000 trade at $.40.

BlackPeter
18-02-2017, 10:08 AM
I agree, a massively discounted SP, but will it ever really move given their Shareholding structure/profile??... like to where it should be (which is over $2/share imo).


You are absolutely correct - the big majority shareholder seems to have no interest in a high SP ... reflected in accounting policies and stock liquidity.

Obviously - this might change at somes stage, but nobody knows when ... there is certainly no urgency for them to remove the SP restraints as long as the money from their hotel business is flowing as well.

Still - for me was CDI so far an outstanding investment. I bought in less than 2 years ago (and accumulated since on dips). SP appreciated on my average buy in price so far by 42% - and on top of that I bought into a reliable (though somewhat frugal) dividend stream. The only drawback is for me the low liquidity ... i.e. you don't want to be stuck with a too high CDI allocation in case you need to sell for any reason.

Apart from the liquidity issue I could live with all my investments behaving like CDI ;) ...

percy
18-02-2017, 10:36 AM
I would not hold your breath.
CDI is 66.70% owned by MCK, which is controlled by Singaporean businessman Kwek Leng Bing.
Very good long term investment for him.

Vaygor1
18-02-2017, 02:59 PM
You are absolutely correct - the big majority shareholder seems to have no interest in a high SP ... reflected in accounting policies and stock liquidity.

Totally agreed.
- Accounting policies on realised worth effectively suppressing NTA, Total Assets and Shareholders Funds.
- No interim dividend
- Suppressed dividend payout
- Sitting on high imputation credits
- Higher H1 unaudited results than needed meaning a scaled back FY result (comparatively)
- Payout 3 months after announcement release date. About 3 times longer than practically everyone else
- Very low profile company with minimum media exposure (this one has obvious advantages too)
- Tightly controlled share-holding structure currently requiring ongoing NZXR dispensation



Obviously - this might change at somes stage, but nobody knows when ... there is certainly no urgency for them to remove the SP restraints as long as the money from their hotel business is flowing as well.

Flow of money from CDI to MCK until quite recently was zero with MCK taking their full allocation of dividends as shares via the DRP. That was until they maxed out 2 or 3 years ago (and currently in breach of) their allowance of non-public ownership.



Still - for me was CDI so far an outstanding investment. I bought in less than 2 years ago (and accumulated since on dips). SP appreciated on my average buy in price so far by 42% - and on top of that I bought into a reliable (though somewhat frugal) dividend stream. The only drawback is for me the low liquidity ... i.e. you don't want to be stuck with a too high CDI allocation in case you need to sell for any reason.

Apart from the liquidity issue I could live with all my investments behaving like CDI ;) ...

Same here. Despite my negativity on the dividend and liquidity issues, I fully acknowledge the excellent results CDI have delivered in the last many years. Top marks to them for that, and no complaints whatsoever about company performance. Just wish the minority shareholders were able to benefit a bit more from it.

Brian Gaynor used to mention CDI (in a negative sense) occasionally in his newspaper column some years back. Be nice to see another CDI mention from him soon, but in a positive light.

Disclosure:
Commenced holding and steadily accumulating since July 2013 (3.5 years ago). Never sold any to-date.
Average price paid: 57.6c/share
Capital gain on average buy price in the 3.5 year period (based on market price at yesterday's close): 52.8%
Received to-date and about to receive in May 2017, a total of 18.5% of the sum invested by way of gross dividends and imputation.

podg
18-02-2017, 03:15 PM
well, a bonus issue, for some shareholders, would make their (small) parcels more tradeable, which would improve liquidity for that shareholder, not the company. which was what I was getting at. and it would also add value to their holdings via a means other than a dividend. I was referring about how some shareholders had raised this issue at recent agms. so, from and investor's perspective, rather than the company's. ok?

blackcap
18-02-2017, 03:48 PM
well, a bonus issue, for some shareholders, would make their (small) parcels more tradeable, which would improve liquidity for that shareholder, not the company. which was what I was getting at. and it would also add value to their holdings via a means other than a dividend. I was referring about how some shareholders had raised this issue at recent agms. so, from and investor's perspective, rather than the company's. ok?

How would it make it more tradeable? From a small shareholders perspective?

For arguments sake you have 2000 shares at 88 cents (now worth $1,760).

The company does a 1:5 bonus issue so you now have 2,400 shares.

After the bonus issue the shareprice is 73.3 cents (your parcel is still worth $1,760)

I do not see how this makes your shareholding more liquid or tradeable.

podg
18-02-2017, 04:01 PM
liquidity is how easily one can turn an asset into cash, yes? trading in CDI can be a challenge. some weeks, and months, almost no shares are traded. and what's on offer, buy or sell, is negligible to say the least. Thus, the market is not conducive to active trade. Put more shares into investor's hands and the market activity increases as some smaller shareholders take the opportunity to sell and some new shareholders see a more meaningful parcel on offer. Last week, there was $300k of trade .... and this was a 12-month high !!! just 300k.

Snow Leopard
18-02-2017, 05:16 PM
What you are saying podg is that people who are reluctant to buy or sell 5,000 shares at $0.88 would be happy if there could buy or sell 10,000 for $0.44 even though the dollar amount ($4,400) is the same.

I regard that as unlikely.

Best Wishes
Paper Tiger

podg
18-02-2017, 09:45 PM
well it's happened many, many times in the past 50 years all over the world. unlikely as that may seem to you. You assume that, post a bonus issue, that the share price always adjusts downward accordingly. you might never have had GPG shares in the 90s. It was uncanny how, after a rights and bonus issue, the share price held steady, before rising again. I wouldn't be at all surprised if the same would happen to CDI, given it's medium-term prospects. just a little bit of patience required, Paper Tiger. not too much to ask.

blackcap
19-02-2017, 07:02 AM
It was uncanny how, after a rights and bonus issue, the share price held steady, before rising again..

It may also have risen had there not been a bonus issue. I held GPG shares and there were times when the share price fell post the bonus issue too. The fact of the matter is though, a bonus issue will not increase liquidity one bit. What the problem with CDI is is that the majority shareholders hold 77% or thereabouts of the company and they are not buying or selling. A bonus issue will not change their outlook. It will not change my outlook on selling either. Just because I have more shares (still worth the same in $ terms) is not going to sway me to sell.

Snow Leopard
19-02-2017, 12:41 PM
...I wouldn't be at all surprised if the same would happen to CDI, given it's medium-term prospects...

and there we have it, the admission of belief that an increase in liquidity is not related to share-splits but to other factors including the actual performance of the company.

Whilst there are papers that show a benefit from share-splits there are also papers which show there are no benefits and then there are papers that show that both the previous two sets of papers were flawed in their assumptions.

I have reliable data for a few stock splits. [My data sources used to automatically adjust for reconstructs, but the past few years I have been gathering raw data] and all I can say is that within the bounds of statistical probability there is no liquidity benefit to a share-split.

I also have data for hundreds of share consolidations, often failed companies with 10+ to 1 ratios and an associated reverse takeover or other significant event to muddy the waters.


Best Wishes
Paper Tiger

podg
19-02-2017, 02:28 PM
I wonder why it is that some companies will mop up unmarketable parcels of shares. the very fact that there is such a thing as an unmarketable parcel of shares might seem a bit unlikely to you? but it happens. this isn't about the value of shares, but the number of shares that might make them more viable as an asset than can easily be turned into cash ... liquidity. it's really not that difficult.

podg
19-02-2017, 02:36 PM
again, it's not about value. liquidity is about how easily an asset can be turned into cash. a larger parcel of shares provides the investor with more options, should they want to sell and turn that asset into cash. the GPG example is a good one. Post bonus, shares can go up, down or hold steady. we shouldn't assume they go down. You are, of course, free to have your own outlook. But don't assume everyone has the same outlook as you.

blackcap
20-02-2017, 06:52 AM
again, it's not about value. liquidity is about how easily an asset can be turned into cash. a larger parcel of shares provides the investor with more options, should they want to sell and turn that asset into cash. the GPG example is a good one. Post bonus, shares can go up, down or hold steady. we shouldn't assume they go down. You are, of course, free to have your own outlook. But don't assume everyone has the same outlook as you.

Liquidity is indeed about how easily an asset can be turned into cash. That requires willing buyers and sellers. If I have 10,000 shares at $1 or 100,000 shares at 10 cents (the effect of a bonus issue) will not change the liquidity or my willingness to sell one iota.

My 100,000 parcel is not more liquid than my 10,000 parcel. My 100,000 parcel gives me no more options than my 10,000 parcel does.

podg
20-02-2017, 09:27 AM
back on the value again. How interesting to hear all about you. Why are shareholders sometimes required to either increase their holding to a 'marketable' parcel of shares or have the company acquire them as they mop up 'unmarketable' parcels? It happens. Having more shares, in some circumstances, makes them more liquid. I refer back to my comment about how little there is trade in CDI at times. in July, August and September last year there was about $30k of trade ... total. Not very liquid. More shares on issue would help to make it a more actively traded stock, even if it's a little more active. and improve some shareholders' liquidity.

blackcap
20-02-2017, 10:00 AM
More shares on issue would help to make it a more actively traded stock, even if it's a little more active. and improve some shareholders' liquidity.

How does more shares on issue make a stock more actively traded? Really struggling to get my head around that one.

Snow Leopard
20-02-2017, 11:11 AM
For the benefit of the poorly informed on this thread

A 'marketable parcel' is an ASX defined term and for head shares is a single holding of shares with a value of A$500 or more.

A company can offer to sell 'unmarketable parcels' (which is generally understood to be a share holding that is not a marketable parcel) on behalf of their holders for a reduced brokerage.
However there is no provision to force a holder to either sell their the 'unmarketable parcel' or to increase the holding to a 'marketable parcel'.

Legally you can hold 1 share in an ASX company and no-one can do anything about it.


Meanwhile on the NZX there is the 'minimum holding' and for CDI trading in the range of greater than $0.50 to $1.00 that 'minimum holding' is 500 shares.
A NZX company can, but is not compelled to, either top up (for free) all holdings such that they meet the definition of a 'minimum holding' or sell all the 'minimum holdings' out from under the holders.

CDI at 1-Mar-16 had 14 shareholders with a combined total of 2,520 shares who did not meet the requirement of a 'minimum holding'. That represented less than ten millionths of the total shares on issue.


Companies that have a large quantity of non 'minimum holding' shareholders are generally those that are or have been pretty sick and their share prices have declined dramatically.


As for the rest of the subject under contention, the phrase 'never get involved in a butt kicking contest with a porcupine' seems most appropriate to me.

Best Wishes to most of you.
Paper Tiger

podg
20-02-2017, 12:18 PM
How does more shares on issue make a stock more actively traded? Really struggling to get my head around that one.

It gives it the potential to be more actively traded. If a stock had 1m shares on issue, tightly held, it would likely trade less that a stock with 100m shares on issue, widely held. at least you are getting the concept of liquidity now. well done.

macduffy
20-02-2017, 12:19 PM
A 'marketable parcel' is an ASX defined term and for head shares is a single holding of shares with a value of less than A$500.


"Of a minimum of A$500", surely, Tiger?

:)

podg
20-02-2017, 12:23 PM
For the benefit of the poorly informed on this thread

A 'marketable parcel' is an ASX defined term and for head shares is a single holding of shares with a value of less than A$500.

A company can offer to sell 'unmarketable parcels' (which is generally understood to be a share holding that is not a marketable parcel) on behalf of their holders for a reduced brokerage.
However there is no provision to force a holder to either sell their the 'unmarketable parcel' or to increase the holding to a 'marketable parcel'.

Legally you can hold 1 share in an ASX company and no-one can do anything about it.


Meanwhile on the NZX there is the 'minimum holding' and for CDI trading in the range of greater than $0.50 to $1.00 that 'minimum holding' is 500 shares.
A NZX company can, but is not compelled to, either top up (for free) all holdings such that they meet the definition of a 'minimum holding' or sell all the 'minimum holdings' out from under the holders.

CDI at 1-Mar-16 had 14 shareholders with a combined total of 2,520 shares who did not meet the requirement of a 'minimum holding'. That represented less than ten millionths of the total shares on issue.


Companies that have a large quantity of non 'minimum holding' shareholders are generally those that are or have been pretty sick and their share prices have declined dramatically.


As for the rest of the subject under contention, the phrase 'never get involved in a butt kicking contest with a porcupine' seems most appropriate to me.

Best Wishes to most of you.
Paper Tiger

poorly informed? I see you have moved away from the subject of liquidity. paper weight, more like.

Snow Leopard
20-02-2017, 02:16 PM
"Of a minimum of A$500", surely, Tiger?

:)

Whoops! My bad & now amended.

Many Thanks
Paper Tiger

blackcap
20-02-2017, 04:47 PM
It gives it the potential to be more actively traded. If a stock had 1m shares on issue, tightly held, it would likely trade less that a stock with 100m shares on issue, widely held. at least you are getting the concept of liquidity now. well done.


Now you are being disingenuous. You wrote in an earlier post that "a rights/bonus issue or even just a bonus issue would go some way to improving liquidity and provide some value to shareholders through something other than what is a modest dividend."

However in the above scenario the stock would still be as tightly held post bonus issue as it was pre-issue. The bonus issue (as stock is distributed on a pro-rata basis to current shareholders according to shareholding (so no new shareholders on the register)) will not make the stock more widely held. (even though there would be more shares on issue) This will be my last post on the subject of liquidity.

podg
20-02-2017, 06:17 PM
Now you are being disingenuous. You wrote in an earlier post that "a rights/bonus issue or even just a bonus issue would go some way to improving liquidity and provide some value to shareholders through something other than what is a modest dividend."

However in the above scenario the stock would still be as tightly held post bonus issue as it was pre-issue. The bonus issue (as stock is distributed on a pro-rata basis to current shareholders according to shareholding (so no new shareholders on the register)) will not make the stock more widely held. (even though there would be more shares on issue) This will be my last post on the subject of liquidity.

thank heavens for that !!!

BlackPeter
08-06-2017, 04:33 PM
Presentation from the annual meeting: https://www.nzx.com/files/attachments/259296.pdf;

Interesting to note that Q1 2017 revenue was 18% higher than Q1 2016 :t_up:. If they manage to keep this pace for the full year than we will have another record year. Doesn't really sounds like that they would feel a subdued housing market.

podg
16-06-2017, 02:55 PM
Presentation from the annual meeting: https://www.nzx.com/files/attachments/259296.pdf;

Interesting to note that Q1 2017 revenue was 18% higher than Q1 2016 :t_up:. If they manage to keep this pace for the full year than we will have another record year. Doesn't really sounds like that they would feel a subdued housing market.

It would indeed be another record year. We will know more in about 2months from now when we get the half-year figures. Reports from Chch are very promising regarding Preston's Road.

BlackPeter
26-07-2017, 08:02 AM
Damn ... somebody was faster than me to pick up the shares on special below 80 cents. thought I might have time until early August (as the years before) to pick them up. Ah well ... maybe I have already enough, given the low liquidity. Anyway - nice long term uptrend:

9025

BlackPeter
04-08-2017, 11:28 AM
Gosh - didn't people say the property market is in the doldrums?

Half year results are out and looking sweet:

https://www.nzx.com/companies/CDI/announcements/305044


CDL INVESTMENTS REPORTS A STRONG HALF YEAR RESULT

Property development and investment company CDL Investments New Zealand Limited (NZX:CDI) today released its (unaudited) results for the six months to 30 June 2017 and announced an after tax operating profit of $20.39 million (2016: $15.95 million) on revenue of $51.04 million (2016: $42.78 million).

...

Financial Performance:

The Directors of CDL Investments New Zealand Limited (“CDI”) advise that the Company has made an unaudited after tax operating profit after tax of $20.39 million for the six month period ending 30 June 2017 (2016: $15.95 million). Operating profit before tax was $28.32 million (2016: $22.16 million).

Property sales and other income for the period was $51.04 million (2016: $42.78 million). Net Asset Backing (at cost) for the period under review was 62.8 cents per share (2016: 54.4 cents per share).

Revenue up 19,3%, NPAT up nearly 28% (up from a record result last year) and net asset backing up 15,4% ... and this only looking at the book value (resell value is significantly higher).

Discl: happy holder - I like uptrends ...:t_up:

podg
04-08-2017, 07:10 PM
another happy holder. locations continue to attract buyers. prospects for full-year numbers, with spring and early summer sales included, are very promising. an increase in the dividend might even seem likely ??

beetills
05-08-2017, 09:13 AM
Not a large holder but happy all the same.An increase in dividend would be great,however they seem to be over cautious in that regard.

podg
01-11-2017, 06:45 PM
So, a ban on non-residents or non-citizens buying NZ houses. However, and importantly for CDL, it is still all clear to buy land or a newly built house. Phew !

blackcap
01-11-2017, 08:38 PM
So, a ban on non-residents or non-citizens buying NZ houses. However, and importantly for CDL, it is still all clear to buy land or a newly built house. Phew !

haha I like you way of thinking... but I do believe CDL is a NZ resident so sure CDL could buy NZ houses if they so wished. Shows how silly the new law (once enacted) will be anyway.

Vaygor1
03-11-2017, 07:12 AM
Not a large holder but happy all the same.An increase in dividend would be great,however they seem to be over cautious in that regard.

Cautious? I would say stingy and measly. Anything, it seems, to keep the share price down:

* Divvy only once a year.
* A miserly dividend at that given their free cashflow position.
* Not paying out significant imputation credits and possibly risking the shareholder continuity test (although I doubt it given the amount they control)
* Suppressed NZX trading liquidity with no action to remedy
* Breach of the NZX rules with no apparent action to remedy (which the independent directors should be jumping up and down about)
* The most minimal communication with shareholders


Disc:a long time holder still waiting (very) patiently.

podg
03-11-2017, 03:31 PM
Oh, sorry ... I was referring to CDL's customers ... those buying CDL's newly built houses, or the land which CDL has developed and is now ready to build on. These are two key exemptions to the non-resident ban.

podg
03-11-2017, 03:33 PM
Cautious? I would say stingy and measly. Anything, it seems, to keep the share price down:

* Divvy only once a year.
* A miserly dividend at that given their free cashflow position.
* Not paying out significant imputation credits and possibly risking the shareholder continuity test (although I doubt it given the amount they control)
* Suppressed NZX trading liquidity with no action to remedy
* Breach of the NZX rules with no apparent action to remedy (which the independent directors should be jumping up and down about)
* The most minimal communication with shareholders


Disc:a long time holder still waiting (very) patiently.

I'm interested to know ... what do think would be a more reasonable dividend?

beetills
05-11-2017, 09:24 AM
Is Labours plan to open up the boundary in Auckland going to affect the value of land held by CDI and what happens if other councild do the same?.eg Hamilton and Tauranga.

podg
05-11-2017, 12:25 PM
Is Labours plan to open up the boundary in Auckland going to affect the value of land held by CDI and what happens if other councild do the same?.eg Hamilton and Tauranga.

It is ultimately the decision of a council, if it is council land. But a govt. can certainly make representations and apply pressure/incentives to encourage a council to push out boundaries. The govt. and councils reach agreement on work projects such as roads or tunnels etc that use council land. As for CDI ... if boundaries were extended, it would still take a fair bit of time before those extra areas were at a stage where CDI's projects are currently, so I can't see it having a significant impact on land values. In fact CDI might well be interested in purchasing more land, so it could be a good thing.

Vaygor1
07-11-2017, 08:39 AM
I'm interested to know ... what do think would be a more reasonable dividend?

Reasonable would have been 4.5c/share instead of 3c/share for last financial year.
4.5 c/share represents under 35% of CDI's current annual earnings per share.
If you want to use NPAT as a yardstick then last year that was 27c/share
Looking at cashflow, which is the correct place to look in my view, they have it running out their ears.

I'm not the only one complaining.

Another irritation is the dividend payment date (19th of May last year).. four and a half months after the 31-Dec end of Financial Year. The longest for any dividend-paying company I've ever invested in. Why the lengthy delay when they only shell out once a year?

podg
07-11-2017, 04:23 PM
Reasonable would have been 4.5c/share instead of 3c/share for last financial year.
4.5 c/share represents under 35% of CDI's current annual earnings per share.
If you want to use NPAT as a yardstick then last year that was 27c/share
Looking at cashflow, which is the correct place to look in my view, they have it running out their ears.

I'm not the only one complaining.

Another irritation is the dividend payment date (19th of May last year).. four and a half months after the 31-Dec end of Financial Year. The longest for any dividend-paying company I've ever invested in. Why the lengthy delay when they only shell out once a year?

yeah, I have raised, on this site, the lengthy period between announcing the dividend and actually paying the dividend and nobody seemed that bothered ?? I asked the NZX and they said there is no particular timeframe for paying a declared dividend. I suspect it might have more to do with overseas shareholders.

I agree with you on the level of payout. They always seem to be 1-2c lower than they could be. or is that should be ?? we will know if much has changed in about 12 weeks when we get the 2017 results.

BlackPeter
09-12-2017, 03:34 PM
Any chance of this takeover spilling into NZ?

https://uk.reuters.com/article/uk-mill-cop-hotels-m-a-city-developments/mc-hotels-agrees-to-sweetened-bid-from-cdl-valuing-it-at-two-billion-pounds-idUKKBN1E22BU

Interesting ... obviously a different country, but similar circumstances (woefully undervalued property portfolio). As a minimum it might change the sentiment a bit towards the better ...

BlackPeter
04-01-2018, 11:10 AM
Anybody else noticing the recent steady uptrend? Today at an all-time high of 90 cents :t_up: - I suppose the market is preparing for another stellar annual result.

9384

Good that CDL investments flies under the radar - if investors would realize that the asset base of this company is ways more worth than the market cap, the share price might blow out ;) - and hey, we can;t have that - can we?

Discl: quite content with my in average roughly 20% appreciation every year (plus a wee divvie);

blackcap
04-01-2018, 11:25 AM
Anybody else noticing the recent steady uptrend? Today at an all-time high of 90 cents :t_up: - I suppose the market is preparing for another stellar annual result.

9384

Good that CDL investments flies under the radar - if investors would realize that the asset base of this company is ways more worth than the market cap, the share price might blow out ;) - and hey, we can;t have that - can we?

Discl: quite content with my in average roughly 20% appreciation every year (plus a wee divvie);

I'm with you on that one BP. Bought my first lot at 28 cents in 2010, and very happy with the additional lot bought at 65 cents in 2016. This is one of those weird companies that do well, do the right things, but because of their register go under the radar, have people "wary" of investing and also have a lack of liquidity. But like you say plenty more potential there and in time that potential will be realised.

beetills
04-01-2018, 05:25 PM
A small shareholder just wondering is it in the best interests for the major shareholders for the sp to rise?

BlackPeter
04-01-2018, 08:36 PM
A small shareholder just wondering is it in the best interests for the major shareholders for the sp to rise?

Good question. Given however that MCI hold more than 50% I assume that they have CDI at cost in their books - i.e. shouldn't matter too much for them, unless they want to go for a takeover of CDI or the mother wants to take over MCK NZ.

As well - what are they supposed to do if they don't like it? Sell down? Might work in the short run, but would probably increase the price in the longer run ...

podg
08-01-2018, 10:05 AM
Good question. Given however that MCI hold more than 50% I assume that they have CDI at cost in their books - i.e. shouldn't matter too much for them, unless they want to go for a takeover of CDI or the mother wants to take over MCK NZ.

As well - what are they supposed to do if they don't like it? Sell down? Might work in the short run, but would probably increase the price in the longer run ...

Some genuine pressure on the SP to start the week ... $1 is now a realistic goal before the full-year announcement in about 5 weeks?? Never been this high before. Is it too much to conclude that the market is expecting not only a better result, but a much higher div yield ??

podg
02-02-2018, 08:55 AM
"In a third approved decision, 46ha in Hamilton is being sold by Geange Farms Limited
to CDL Land New Zealand which is 39 per cent New Zealand owned, and an NZX-listed company.

CDL planned to develop residential housing sections on the land, creating a modern,
high-quality residential subdivision which would then be sold on the open market.

The OIO said CDL had a number of other investments which had provided jobs and the
land was still at least partially remaining New Zealand owned."

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11985547

very interesting ... and a good result for CDL. Later in the same article is some equally interesting detail about parent companies increasing their holding in subsidiaries, which may impact on CDL at some point.

blackcap
08-02-2018, 03:28 PM
Looks solid enough to me. Divi up 16% to 3.5c. EPS 11.6c

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/313926/274069.pdf

BlackPeter
08-02-2018, 03:37 PM
Looks solid enough to me. Divi up 16% to 3.5c. EPS 11.6c

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/313926/274069.pdf

Yep, good result - as to be expected. 2nd HY growth however not as great as first HY, but I guess this was to be expected as well (given the state of the housing market and elections / new government).

Market cap ($266m) still below market value of asset base (@276m);

Quiet achiever - great investment!

Discl: happy long term holder ;);

podg
08-02-2018, 07:22 PM
Yep, good result - as to be expected. 2nd HY growth however not as great as first HY, but I guess this was to be expected as well (given the state of the housing market and elections / new government).

Market cap ($266m) still below market value of asset base (@276m);

Quiet achiever - great investment!

Discl: happy long term holder ;);

Low-key reaction to the result on the sharemarket. Announcement late in the day and it has been a difficult week for the market, so not entirely surprising. Perhaps the recent rise in the share price to record levels indicates where the market thought the result might be. A 4c div would have pushed the share price through the $1 mark in all likelihood ...

Vaygor1
08-02-2018, 07:49 PM
Dead right BP.... another sterling result \(o,o)/

Here is my annual CDI metrics update. Have added a 'PE ratio at announcement' column.
Plenty of SP headroom in the latest result. A PE ratio of just 10 = SP of NZ$1.16

9470

A current PE of 8.3 with record profits year-on-year for 8 consecutive years and a mkt cap less than their asset base.... sounds like excellent value to me.
Even if CDI encounter 0% increase in reported profit per annum for the foreseeable future, current EPS at current SP means a Return On Investment of 12%/annum.

Disc: CDI holder and accumulator since July-2013.

beetills
09-02-2018, 07:52 AM
Does this result include the purchase of the 46ha in Hamilton as mentioned previously?

beetills
31-05-2018, 02:01 PM
Large volumes traded today for CDI.
Didn't see anything in their presentation to cause this or did i missing something.

blackcap
31-05-2018, 02:15 PM
Large volumes traded today for CDI.
Didn't see anything in their presentation to cause this or did i missing something.

No me neither.. had to laugh at the presentation though. Looked like a year 13 student would prepare for an economics presentation or something similar..
but this just came out and may explain your query...

Summary for: Adrian Ho
For this disclosure,--
(a) total number held in class: 21,763,600
(b) total in class: 278,118,487
(c) total percentage held in class: 7.83%

For last disclosure,--
(a) total number held in class: 26,608,000
(b) total in class: 275,468,365
(c) total percentage held in class: 9.66%

Details of transactions and events giving rise to relevant event
Details of the transactions or other events requiring disclosure under the
instructions to this form:
Sold 6,055,400 shares at 94 cents.

Vaygor1
31-05-2018, 06:48 PM
No me neither.. had to laugh at the presentation though. Looked like a year 13 student would prepare for an economics presentation or something similar..
but this just came out and may explain your query...

Summary for: Adrian Ho
For this disclosure,--
(a) total number held in class: 21,763,600
(b) total in class: 278,118,487
(c) total percentage held in class: 7.83%

For last disclosure,--
(a) total number held in class: 26,608,000
(b) total in class: 275,468,365
(c) total percentage held in class: 9.66%

Details of transactions and events giving rise to relevant event
Details of the transactions or other events requiring disclosure under the
instructions to this form:
Sold 6,055,400 shares at 94 cents.

I haven't done the calcs but I think this sale finally fixes CDI's breach of NZX rules regarding minimum percentage requirements for public holding. When Adrian owned 10%+ of the business, his holding (according to the rules) was deemed non-public.
This just my preliminary view.

blackcap
31-05-2018, 07:04 PM
I haven't done the calcs but I think this sale finally fixes CDI's breach of NZX rules regarding minimum percentage requirements for public holding. When Adrian owned 10%+ of the business, his holding (according to the rules) was deemed non-public.
This just my preliminary view.

I concur with that. Problem was he was on the DRP and others were not or something like that. Good to see him under that 10%. I do not take it as a sign of weakness.

podg
01-06-2018, 04:10 PM
Stakes bought by interests out of Aberdeen. Canny wee lads.

Vaygor1
02-08-2018, 02:01 PM
And as the thread states another Great Result. :)
H1 operating profit up 25% on last year's H1
Ref https://www.nzx.com/announcements/321580

BlackPeter
02-08-2018, 02:29 PM
And as the thread states another Great Result. :)
H1 operating profit up 25% on last year's H1
Ref https://www.nzx.com/announcements/321580

Quite boring isn't it? I guess their earnings grow every year by roughly 20% ... who would want to own such a predictable company? Just not enough excitement and nail-biting involved.

Ah yes ... and their property portfolio alone is still more worth than the total market cap. People should not be fooled by the NTA (which is close to the SP) based on book value counting assets at the lower of purchase or market value).

But I guess we better stop making noises here. Some gems better stay hidden ;); Looking forward to a long and quiet period until we get another two (or three) posts at the annual results.

podg
02-08-2018, 07:14 PM
Quite boring isn't it? I guess their earnings grow every year by roughly 20% ... who would want to own such a predictable company? Just not enough excitement and nail-biting involved.

Ah yes ... and their property portfolio alone is still more worth than the total market cap. People should not be fooled by the NTA (which is close to the SP) based on book value counting assets at the lower of purchase or market value).

But I guess we better stop making noises here. Some gems better stay hidden ;); Looking forward to a long and quiet period until we get another two (or three) posts at the annual results.

First mention of building ... then taking on tenants for, a commercial property. Is this a move to a new revenue stream? Adding the likes of a medical centre or childcare centre to a subdivision, then leasing it. Interesting development. Will not appear on the balance sheet till 2020 or later. Still not sure what might push the sp through the $1 mark. Will have to wait till next year probably, and how an increase in profitability and dividend might be received by the market.

BlackPeter
03-08-2018, 07:42 AM
First mention of building ... then taking on tenants for, a commercial property. Is this a move to a new revenue stream? Adding the likes of a medical centre or childcare centre to a subdivision, then leasing it. Interesting development. Will not appear on the balance sheet till 2020 or later. Still not sure what might push the sp through the $1 mark. Will have to wait till next year probably, and how an increase in profitability and dividend might be received by the market.

You are right - this mentioning of providing commercial space in their subdivisions was quite interesting. Imagine a medical center, child care, some retail space, some food outlets, a gym ... nothing to limit the imagination. Properly done this can be not just another nice little earner through the lease, but it will as well enhance the value of the properties they sell.

Not too fussed about the $1 barrier. They did pay me so far every year 20% plus in dividends and appreciation - i.e. the $1 can't be that far away, but who really cares?

podg
03-08-2018, 08:30 AM
You are right - this mentioning of providing commercial space in their subdivisions was quite interesting. Imagine a medical center, child care, some retail space, some food outlets, a gym ... nothing to limit the imagination. Properly done this can be not just another nice little earner through the lease, but it will as well enhance the value of the properties they sell.

Not too fussed about the $1 barrier. They did pay me so far every year 20% plus in dividends and appreciation - i.e. the $1 can't be that far away, but who really cares?

Well, i'm hoping the market cares, or more specifically, recognizes the value in CDL. It might also attract more investors, small, medium and large, to look at the prospective returns and decide to join the share register. All positive outcome, going forward.

Vaygor1
05-08-2018, 07:09 PM
Well, i'm hoping the market cares, or more specifically, recognizes the value in CDL. It might also attract more investors, small, medium and large, to look at the prospective returns and decide to join the share register. All positive outcome, going forward.

CDL appear to have a policy of playing everything down.

Pay dividends only once per year
Pay a pittance of a dividend compared to what their free cashflow allows
Hang on to all those imputation credits until the cows come home
​Maintain a massive time gap between dividend announcement and dividend payment
Control via MCK and (I believe) Adrian Ho, of a greater percentage of the company than perhaps they are allowed
Provide NTA based on book value (always way below market value for the vast majority of their land portfolio)
Put across great results like they're no big deal
​Provide a more subdued forward guidance than necessary
Keep announcements to the market to an absolute minimum
Do nothing to increase their market liquidity


On top of the above, my opinion is they have developed a habit of announcing an over-exuberant H1 result (this time around, H1 operating profit & revenue up 25% on the Previous Corresponding Period) when there is no audited financial report to back it up. Having no audited report suppresses the impact on the SP than would otherwise be the case. This H1 result then sets the background expectation for a 25% increase for the FY audited result, which will not be met when it finally arrives. The impact of not meeting this background expectation, under audit, also has the effect of (along with all the reasons bulleted above) suppressing the sharemarkets reaction to a very positive FY result.

I hope, unlike past years, I am wrong about this. But I won't be holding my breath and continue to believe market recognition will not be forthcoming.

Despite the above I am a happy holder. One can do a lot worse on the bourse.

percy
05-08-2018, 08:50 PM
Yes holding CDL, or in my case MCK, gives my portfolio a company with solid growing earnings on very low multiples,with a high NTA.
Also exposure to land development,and the travel sector with their hotels.
If the share price growth over the past 5 years, continues for the next 5 years we will be well rewarded.

podg
06-08-2018, 09:03 AM
I agree with most of your points Vaygor1. I have been with CDL since before they were CDL and have often wondered why they are so low-key on what have been some great results over the years. The dividend announcement/payment gap is odd, to say the least, but doesn't break any market rules that I am aware of.

On balance, I would prefer a company I have a stake in to downplay a good result, rather than overstate a poor one.

That said, the NTA at book value and holding the imputation credits continue to be a frustration. What would it take to change these two factors? Do the new shareholders (Aberdeen) have a plan in this regard? We shall see ….

BlackPeter
06-09-2018, 10:54 AM
Aberdeen Standard Investments topped up another 2.5 million (roughly) shares and now holding 8.37%. They say that Scotsmen are cunning with money ;);

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/323437/286229.pdf

Scrunch
06-09-2018, 05:42 PM
Aberdeen Standard Investments topped up another 2.5 million (roughly) shares and now holding 8.37%. They say that Scotsmen are cunning with money ;);

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/323437/286229.pdf
They also spent just over a mil on MCK shares taking them over 13%. I wonder if it's just investing spare cash or part of a wider plan.

BlackPeter
01-02-2019, 09:42 AM
Another week or so and we will see the annual results.

Not sure I understand the recent SP development, though - 2018 should deliver another great result (as they forecasted) and given that Labour is not able to deliver on its housing promises - any developer of reasonably priced real estate should continue to do well.

OK - leaning myself out of the window - based on the HY results and still solid house sales I reccon they might report revenue around $93 m and EPS between 14 and 15 cents, which would be another nice increase compared to last year.

Good time to accumulate? What do others hope for / expect?

BlackPeter
01-02-2019, 01:50 PM
Thought your post might be this;
https://www.linz.govt.nz/overseas-investment/decision-summaries-statistics/2018-12/201810078

Too late to accumulate, I expect "gone by 1 June"

Cheers for the link. Good to see that they keep increasing their stock - and not surprised that they got OIO approval (though not sure,why they didn't announce the decision to market).

Not sure, though what you mean with "gone by 1 June"?

beetills
01-02-2019, 02:51 PM
Got quite a bit of land in Hamilton.Pretty sure that they purchased a large block of land late 2017.
A bigger divie would be nice and the sp to increase to reflect the amount that their land is valued at.

beetills
13-02-2019, 12:10 PM
Good result today,another 3.5c divie.Land holdings look good for the future.

blackcap
13-02-2019, 12:16 PM
Good result today,another 3.5c divie.Land holdings look good for the future.

Cannot complain, profit up, div maintained, EPS 12 cents and SP at 85. Future looks good.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/330512/294853.pdf

percy
13-02-2019, 12:41 PM
Good result for shareholders.
Shareholders equity well up.
Augers well for MCK which I hold.

BlackPeter
13-02-2019, 12:59 PM
Yep, while the second half was not quite as outrageously good as the first - still nice growth in revenue and earnings. And lets face it - where else can you buy a share with 12.1 cents EPS, revenue as well as earnings CAGR above 15% and a net asset backing of 76 cents for just 85 cents?

And lets not forget ... the "lowish" net asset backing is only thanks ot their accounting policy to account for property at the lower price of valuation and purchase price.

Discl: happy holder;

Edit:
(1) looks like SP going up since I last looked ... but hey - 86 cents still looks cheap, doesn't it?
(2) Ah yes - and did I mention that their landbank alone is worth $1.21 per share ...
... I'd call that deep value game, but yes, low liquidity is the price to pay.

Vaygor1
14-02-2019, 11:06 AM
CDI Metrics update including the latest results.

10316

I see they're still up to the old trick of announcing an exuberant H1unaudited Profit increase (up 25% on the pcp) to set a high expectation for a FY result, which then comparatively disappoints thus suppressing the SP.

I agree BP, the net asset backing makes this share a bargain on paper (as you have stated $1.21/share solely on the latest independent land valuations) , but given the ownership structure, their complete control, and nzx trading il-liquidity, I think it will always be a buy-cheap-sell-cheap share.

I would have thought there would be a lot more to announce than what was announced yesterday. Perhaps there's more to come in the next few months? .... and when are those elusive imputation credits going to see the light of day?

blackcap
14-02-2019, 11:17 AM
CDI Metrics update including the latest results.

10316

I see they're still up to the old trick of announcing an exuberant H1unaudited Profit increase (up 25% on the pcp) to set a high expectation for a FY result, which then comparatively disappoints thus suppressing the SP.

I agree BP, the net asset backing makes this share a bargain on paper (as you have stated $1.21/share solely on the latest independent land valuations) , but given the ownership structure, their complete control, and nzx trading il-liquidity, I think it will always be a buy-cheap-sell-cheap share.

I would have thought there would be a lot more to announce than what was announced yesterday. Perhaps there's more to come in the next few months? .... and when are those elusive imputation credits going to see the light of day?

What is interesting to me is that the PE has compressed quite a bit since you started your graph. That is when other PE's are expanding.

So I think this would be a very cheap time to buy in to this stock, irrespective of their "old tricks" and structure. Or am I missing something that has caused the PE to contract so sharply?

P.s it might be nice to add dividends to your sheet as well as NTA per share based on valuation of property rather than book value.

BlackPeter
14-02-2019, 12:01 PM
CDI Metrics update including the latest results.

10316

I see they're still up to the old trick of announcing an exuberant H1unaudited Profit increase (up 25% on the pcp) to set a high expectation for a FY result, which then comparatively disappoints thus suppressing the SP.

I agree BP, the net asset backing makes this share a bargain on paper (as you have stated $1.21/share solely on the latest independent land valuations) , but given the ownership structure, their complete control, and nzx trading il-liquidity, I think it will always be a buy-cheap-sell-cheap share.

I would have thought there would be a lot more to announce than what was announced yesterday. Perhaps there's more to come in the next few months? .... and when are those elusive imputation credits going to see the light of day?

You are right - liquidity is clearly an issue. Not the stock you want to invest your emergency funds into.

Given the ownership structure is it as well unlikely we will see a quick return on their property gains. Over the long run I expect we will (but who knows, when ...). They say the stock market is a machine to transfer wealth from the impatient to the patient.

On the other hand - the current divvie alone turns out to be a 4.1% return pa - with taxes already paid (imputation credits), much better than a BBB bond these days.

And then, while the average SP didn't really increase last year (though there have been ups and downs) - over the last three or four years there was as well a nice capital gain. But even during the last year their would have been trading opportunities - sell at 95 cents and buy back at 85 cents anyone (though mind the liquidity)?

I do consider them as a quite sensible (and well performing) bond substitute as part of a balanced portfolio. If the SP grows as well, than this is a nice bonus. I do like bonus ;);

beetills
22-02-2019, 11:37 AM
Will a CGT have huge tax implications for a company like CDI?

Vaygor1
22-02-2019, 11:55 AM
Will a CGT have huge tax implications for a company like CDI?

Personally I doubt it. ie....

Farmer:
Buy a farm.
Make a few improvements or let it go to the pack.
Sell the farm.
Difference = capital gain/loss

CDI:
Buy a farm.
Develop masterplan and obtain consent. Subdivide.
Put in roads, footpaths, street lighting, curbing snd channeling, potable water, grey water, wastewater, stormwater, electricity, fibre, shopping centres, parks.
Sell the sections.
Difference = amount of added value. Capital gain/loss component subjective.

BlackPeter
22-02-2019, 11:57 AM
Will a CGT have huge tax implications for a company like CDI?

Good question.

The way I see it - they buy raw materials (in their case land) and improve this land by subdividing and development. They then sell on their products (the developed sections) and they pay the full taxes on whatever they earn (revenue minus cost of purchase and development) which includes any capital gain. I don't see what difference a CGT would make in their case.

It would be different if they would need to pay tax on unrealised capital gains (i.e. before they sell the sections) ... but I don't think that even Cindy's kindy would be stupid enough to propose that. This would be a killer for any business.

BlackPeter
08-03-2019, 09:13 AM
Returning to the long term growth rate?

10377

With SP returning to the pink (long term growth) trend line - this might be a good buying opportunity? Only drawback I see is the lack of liquidity in the stock. Not good if one needs to sell fast.

Business seems to tick along quite nicely:

Christchurch + Rolleston:
https://www.prestonspark.co.nz/
https://www.stonebrook.co.nz/

Hamilton:
https://cdlinvestments.co.nz/magellan_heights_sections_for_sale_flagstaff_hamil ton/

Hawkes Bay:
https://cdlinvestments.co.nz/northwood_sections_for_sale_hawkes_bay/

... and I didn't realise they develop in Queenstown as well:
https://cdlinvestments.co.nz/morningstar_terrace_sections_for_sale_queenstown_a rrowtown/


Dislc: holding

blackcap
08-03-2019, 09:53 AM
Returning to the long term growth rate?

10377

With SP returning to the pink (long term growth) trend line - this might be a good buying opportunity? Only drawback I see is the lack of liquidity in the stock. Not good if one needs to sell fast.

Business seems to tick along quite nicely:

Christchurch + Rolleston:
https://www.prestonspark.co.nz/
https://www.stonebrook.co.nz/

Hamilton:
https://cdlinvestments.co.nz/magellan_heights_sections_for_sale_flagstaff_hamil ton/

Hawkes Bay:
https://cdlinvestments.co.nz/northwood_sections_for_sale_hawkes_bay/

... and I didn't realise they develop in Queenstown as well:
https://cdlinvestments.co.nz/morningstar_terrace_sections_for_sale_queenstown_a rrowtown/


Dislc: holding

I was thinking of dipping in the toes once again and topping up. I thought the FY was very good and surprised the SP did not kick on. So these prices seen now are starting to become very attractive.

BlackPeter
08-03-2019, 10:06 AM
I was thinking of dipping in the toes once again and topping up. I thought the FY was very good and surprised the SP did not kick on. So these prices seen now are starting to become very attractive.

Agree - the FY did look good. PE of 7 (based on last FY and current SP) is quite attractive. Add to that their consistent strong revenue CAGR of 31.6 and earnings CAGR of 33.9 - there is clearly money to make in property development, and they do know - how.

Not too worried about the future of their business either given the ongoing strong demand for residential properties ...

blackcap
08-03-2019, 10:12 AM
Agree - the FY did look good. PE of 7 (based on last FY and current SP) is quite attractive. Add to that their consistent strong revenue CAGR of 31.6 and earnings CAGR of 33.9 - there is clearly money to make in property development, and they do know - how.

Not too worried about the future of their business either given the ongoing strong demand for residential properties ...

Yes indeed, there is ongoing strong demand for residential. They have a proven model, you mention the CAGR in both earnings and revenue. The liquidity is an issue but it always has been so that for me will not be a big factor, especially since I am holding for a medium to long term. You just need to be cognisant that they will always trade at a low PE multiple for a variety of reasons listed in this forum. The "late" dividend payment does not bother me one little bit. It is consistent year on year so you still get a dividend every 12 months. I do not understand why some have a problem with this. It does not matter when a company pays a dividend whatsoever. And at 3.5 cents its still a reasonable return on investment as well.

BlackPeter
22-03-2019, 10:49 AM
Annual report is out:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/332312/296920.pdf


CDL Investments New Zealand Limited (“CDI”) recorded a profit after tax of $33.6 million for the year ended 31 December 2018, an increase of 4.6%
from the previous year (2017: $32.2 million). This result is the ninth consecutive year of profit growth for the company.
Property sales & other income totaled $85.0 million (2017: $78.7 million). Profit before tax also increased to $46.7 million (2017: $44.7 million).
Shareholders’ funds as at 31 December 2018 increased to $210.6 million (2017: $186.1 million) and the Company’s total assets stood at $217.6
million (2017: $191.7 million). The net tangible asset per share (at book value) at balance date was 75.7 cents (2017: 67.1 cents)

Book value per share (not even taking capital gains into account) is 75.7 cents. Add a fully imputed dividend of 3.5 cents - and this share is currently trading below asset value.

Ah yes - and if we take their assets at their current (i.e. not just book-) value, than their real estate alone is worth $1.52 per share. Does 80 cents per share sound too dear for this?

On top of that - EPS seems to hang around 12 cents p.a. (don't expect further earnings growth this year - they said they need to be flexible with pricing to keep revenue up). 12 cent EPS for a 80 cent share, this is a PE of 6.7

Nobody should say that it is hard to find very friendly priced shares these days ... sometimes I don't understand the markets ;);

blackcap
27-03-2019, 09:34 AM
Annual report is out:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/332312/296920.pdf



Book value per share (not even taking capital gains into account) is 75.7 cents. Add a fully imputed dividend of 3.5 cents - and this share is currently trading below asset value.

Ah yes - and if we take their assets at their current (i.e. not just book-) value, than their real estate alone is worth $1.52 per share. Does 80 cents per share sound too dear for this?

On top of that - EPS seems to hang around 12 cents p.a. (don't expect further earnings growth this year - they said they need to be flexible with pricing to keep revenue up). 12 cent EPS for a 80 cent share, this is a PE of 6.7

Nobody should say that it is hard to find very friendly priced shares these days ... sometimes I don't understand the markets ;);

I am currently going through the report and am liking what I am seeing. BP you nailed it with your post. EPS is 12 cents yes really. This has to be the bargain of the century. Even a 3.5 cent fully imputed dividend makes the yield about 6.3%.
One caveat that I did read in the Director's review was the following:

"While we are confident that 2019 will be profitable, we are already seeing a slowing property market and this sentiment will impact our section sales in coming months. 2019 will therefore necessitate some degree of flexibility in our sales approaches in order to maintain our positive sales tempo."

To me that means that profit will probably be down slightly in 2019, maybe back to 2016-2017 levels when profit were $27m- $32m and then EPS will be about 9.7- 11.5CPS. Not really a worry on a SP of 82-85 cents.
Just be wary if purchasing, this stock is not that liquid, so you may require patience in purchasing and selling a holding.

sb9
27-03-2019, 04:13 PM
Aberdeen ceasing to be SSH.

https://www.nzx.com/announcements/332564

blackcap
27-03-2019, 04:32 PM
Aberdeen ceasing to be SSH.

https://www.nzx.com/announcements/332564

They sold 51,000 shares. Thought they could sell more. Now they are under 5% we will not know if they do sell more.

beetills
07-04-2019, 12:22 PM
What logical reason could they have to sell only 51000.
Does anybody know if they take a divie or are in the DRP.
Just seems strange to me ,but then,i'm no expert.

BlackPeter
07-04-2019, 01:00 PM
What logical reason could they have to sell only 51000.
Does anybody know if they take a divie or are in the DRP.
Just seems strange to me ,but then,i'm no expert.

I could think about plenty of "logical reasons":

They might have an internal policy on being a substantial shareholder and try to avoid this situation if possible?

They might want to avoid to have to inform the market on further sale down?

They might want to let the market think that they are selling down to depress the price to buy soon another big chunk on the cheap?

Or maybe the responsible investment manager just found a gap of $40k in his overall investment portfolio cash position he had to fill prior to the next report time?

I don't think it means anything to be concerned about ... but we shall see ;)

beetills
15-05-2019, 11:24 AM
I know it's XD but the share price appears to on the slide.Anyone with a possible explanation.Seems to be a good time to buy but the next divie will be 12 months away.

percy
15-05-2019, 11:30 AM
Weak property market means they face headwinds for the foreseeable future..

BlackPeter
15-05-2019, 02:55 PM
I know it's XD but the share price appears to on the slide.Anyone with a possible explanation.Seems to be a good time to buy but the next divie will be 12 months away.

PE below 6 (based on last years 12.1 cents EPS); Even if they don't manage to grow last years EPS (which they did so far every year for the last 8 years) - this is a good price.

Even if sales activity would deliver next year only half of last years earnings (and there is no indicator showing that), they would still have a healthy PE .

Ah yes, and NTA per share (based on their property at buy in price) is already 76 cents. Current valuation of their landbank is above $1 per share.

However - they are clearly a stock with low liquidity. Not good if an investor needs to sell them in a phase like now.

beetills
01-08-2019, 12:07 PM
What do people think of the latest result.
IMO with land on hand and with them indicating the purchase of more in the future things may get better especially with previous announced intentions to add commercial buildings on their sites to add extra income..I will be holding the few shares i have and adding if funds become available.

podg
02-08-2019, 09:20 PM
looks like a new phase has started … adding to the land bank. so lower profits and reduced dividends are likely if past payouts during this phase are any indication. patience is the key, for investors, as we wait for the demand-supply curve to return to supporting the sale of sections developed. the rewards in recent years have been good, so perhaps there is an opportunity to add to the shareholding. time will tell …

Lease
05-08-2019, 09:21 PM
It's just my curiosity. CDI as a property developer, how come it doesn't have any mortgage held?

podg
06-08-2019, 04:56 PM
It's just my curiosity. CDI as a property developer, how come it doesn't have any mortgage held?

as long as I have been with CDI, it has never had debt, and I have been a shareholder for more than 20 years. it started off with a load of tax-loss credits so never felt the need to borrow. rare, but effective

clearasmud
09-08-2019, 02:57 PM
Their net assets are probably worth double the current shareprice.
They seem on track to post a record profit this year.
The dividend should at least hold steady

mfd
09-08-2019, 03:07 PM
I'd be very surprised to see record profits given the first half was well down on last year, but I agree they have a big stash of land to develop, a wad of cash to buy more land, and they continue to trade at amazing multiples.

I had an interesting read through their old GFC financials - it looks like if the **** really hits the fan the company will just hibernate, sit on their land, and emerge in spring. No debt, apparently low fixed overheads, solid company.

clearasmud
09-08-2019, 03:49 PM
Reread the half yearly they are expecting a solid second half

clearasmud
09-08-2019, 03:50 PM
They won't want to end their 7 year run of increasing profits.

mfd
09-08-2019, 04:00 PM
I'll be very happy to be proven wrong, but with first half sales down by 1/3 I doubt they will be able to recover sufficiently in the second half. Commentary states conditions are challenging and the market is soft despite believing the second half will improve on the first.

I'm sure they would like profits to increase again, but they don't necessarily get to decide that if conditions are against them. With a PE based on last year's results of about 6, the market is clearly pricing in some reduce profits. I still hold and am confident they'll do nicely in the long term.

Lease
09-08-2019, 04:23 PM
One concern is CDI largest shareholder is MCK. MCK has properties at global presence. If, say, there is economic recession in next a couple of years, and MCK get into trouble. Is it possible MCK take cash from CDI?

podg
19-08-2019, 04:13 PM
One concern is CDI largest shareholder is MCK. MCK has properties at global presence. If, say, there is economic recession in next a couple of years, and MCK get into trouble. Is it possible MCK take cash from CDI?

take cash from CDI ….. it what way, do you think??

Scrunch
19-08-2019, 04:33 PM
take cash from CDI ….. it what way, do you think??

The only clean way to do it is distributions to MCK and then MCK does a distribution to its shareholders etc.

The distribution could be a dividend, share buybacks or similar.

There's also dirty distribution methods whereby CDL makes loans to the parent but i think that would need shareholder approvals.

podg
22-08-2019, 09:22 AM
any dividend would have to be approved, publicly declared and also paid to CDL shareholders on a stated date. as is the process now.

loans to parents are heavily scrutinised these days and can't see that getting through shareholder or board approval without negative publicity. so unlikely.

perhaps MCK might consider a formal takeover of CDL and offer shareholders a premium to current market price and have full access to all the goodies ...

Vaygor1
13-09-2019, 02:00 PM
Interim report out today.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CDI/340856/307479.pdf

Revenue down on last year's H1 with a cautionary optimistic H2 stated.

CDI also stating they have/are using the lull in the market to purchase more land.

With CDI's policy of valuing its land-bank by purchase-price, recent land purchases bring their book value a little bit closer to the reality of what their land-bank is actually worth.

Due to the above, equity has grown to $216.5 million or $0.78 per share.

So with CDI's very conservative figure on land-value, if anybody thinks that today's share price at $0.76 per share isn't a steal, please enlighten me.

Disc: Long time holder and still holding.

greater fool
14-09-2019, 09:52 AM
Old content, no longer of use. Gone.

blackcap
14-09-2019, 10:05 AM
Most downbeat commentary ever. Talking the market price down.
Think they have been doing more than just talking, suspect strategic
selling in MCK and CDL has been going on for some time to depress
SP before the inevitable.
When the takeover happens, suspect the margin over and above current
market pricing will be loudly proclaimed, rather than the the deep discount
to NTA they will be stealing.

Disc: hold CDL and MCK.
Other holders may want to look at this;

https://www.sharetrader.co.nz/showthread.php?8467-Mck&p=767911&viewfull=1#post767911

Been some very interesting ( to me ) announcements in London and Singapore overnight!


I am not too concerned. We in NZ have protections under the companies act with emphasis Sections 110 and 111. They will have to pay me at least Market Value of assets + cash - liabilities to get my shares off me. So if they do go via the takeover route and get more than 90% acceptances I will be receiving more than $1 for my shares.

BlackPeter
14-09-2019, 02:37 PM
Most downbeat commentary ever. Talking the market price down.
Think they have been doing more than just talking, suspect strategic
selling in MCK and CDL has been going on for some time to depress
SP before the inevitable.
When the takeover happens, suspect the margin over and above current
market pricing will be loudly proclaimed, rather than the the deep discount
to NTA they will be stealing.

Disc: hold CDL and MCK.

Holders may want to look at this;
https://www.sharetrader.co.nz/showthread.php?8467-Mck&p=767911&viewfull=1#post767911
Been some very interesting ( to me ) recent announcements in London and Singapore.

Sure - if they want to make a full takeover offer, than now is the best time. I expect that the past HY was CDI's weakest and business is clearly taking up again - i.e. every month they wait they will need to pay more.

And yes - the current SP does not really make sense looking at earnings, outlook and fundamental value of their assets, i.e. quite likely that the majority owners pushed the price down as far as possible by selling some of their huge holdings into a low liquidity markt.

An amazing time to buy more - problem is just that the strategic sellers definitely have more shares to sell than I ever could afford to buy. Damn - they win and likely keep the price low!

greater fool
14-09-2019, 07:33 PM
Old content removed.
(https://www.sharetrader.co.nz/showthread.php?873-CDL-CDI-Another-Great-Result&p=753014&viewfull=1#post753014)

BlackPeter
15-09-2019, 09:11 AM
Have a look at posts #222,#223,#224,#225...

Start here at 222;
https://www.sharetrader.co.nz/showthread.php?873-CDL-CDI-Another-Great-Result&p=753014&viewfull=1#post753014

You are right - and looks like I was wrong. Aberdeen going below 5% clearly gives them enough hidden ammunition to keep the SP low for longer than any takeover preparations might need.

BlackPeter
23-10-2019, 10:19 AM
looks like markets noticed that the big real estate crash was just a sham ...

I like the trend chart. Congratulations to everybody who loaded up at the recent lows around 70 cents ;):

10819

mfd
23-10-2019, 10:39 AM
looks like markets noticed that the big real estate crash was just a sham ...

I like the trend chart. Congratulations to everybody who loaded up at the recent lows around 70 cents ;):

10819

Now trading at a dizzying PE ratio of 7.2. Still holding, still happy, topped up a little in the low 70s. Expecting lower profits this year than last, but I'm confident in the long term outlook.

BlackPeter
25-10-2019, 09:33 AM
Now trading at a dizzying PE ratio of 7.2. Still holding, still happy, topped up a little in the low 70s. Expecting lower profits this year than last, but I'm confident in the long term outlook.

Absolutely - and all the recent good news for the property market can only help.

BTW - was this the Golden Cross we just saw passing by ;)?

At this stage I have them based on (I think) pretty conservative earnings estimates on a forward PE of 8.8 together with an (again I think very conservative) earnings CAGR of 8. And all this income is basically for "free", given that the share value is already covered by the worth of the land bank, which is probably growing in a budding property market.