Maybe the result is better than it seem, if we consider Auckland waterfront hotel was not contributing due to refurbishment.
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Maybe the result is better than it seem, if we consider Auckland waterfront hotel was not contributing due to refurbishment.
BP you are right, been in contact with mck and they confirmed your assumption.
Surprising announcement, not too many details though, does say the magic words "earnings accretive" though :t_up:
https://www.nzx.com/announcements/313706
Acquired a very small parcel of these shares through family interest's around Christmas time...
Haven't really sat down and had a good look at the company as of yet.
First impressions are quite conservative, "boring" ( which can be a good thing!), company with a reasonably consistent profit with a small dividend paid once a year.
CDL also seems to be going very well at the moment.
Not much liquidity which I can't decide if it's a good thing or not....
Like I say more research required....gut instinct tells me to add to my recent pick up...and forget about them for 10 years.....
Like the tourism sector and I have done very well up to now on my THL shares:t_up:
Hmmm...might be some reading to do this weekend!
Do like the new bar in the bottom of the new M Social hotel
Tell us if your reading this weekend finds some interesting news ;);
The Pros as I see them:
acceptable P/E (15) in combination with a quite good and consistent growth rate (CAGR >10);
lots of hidden value on the balance sheet (including a sh*tload of highly undervalued CDL shares) - actually - the real value (if somebody would want to liquidate the assets) is well above the market cap;
exposure to the flourishing tourist sector;
The Cons:
low liquidity - clearly not the stock to put your emergency funds into ;);
majority shareholder has full control - and their interests might not be aligned with the interest of retail shareholders;
As I see it - one important feature of both CDL as well as MCK seems to be to hide asset values (note - I don't say this is intentional ;)). Retail shareholders might need to wait a (very?) long time until majority shareholder decides to change the relevant accounting policies (if at all) unless we have a takeover or some change in the legal accounting framework;
Discl: hold a smallish parcel of MCK and a medium sized parcel of CDL shares - and yes, there is a reason I hold more CDL;