Is it correct that MCK shareholders are given discount to any of the hotels MCK owned. Please if any of the MCK shareholders there ?
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Is it correct that MCK shareholders are given discount to any of the hotels MCK owned. Please if any of the MCK shareholders there ?
And whether it's only in NZ, or includes the Millenium, Copthorne and Kingsgate brands internationally. . . .
From memory discount is 50% off rack rate + late checkout. Hotels have been so discounted lately that I have only used it once as they are often less than half the rack rate already. As far as I know it does not apply to overseas hotels.
How did you get the discount ? Did you ring the hotel or did you get a discount voucher from the share registrar quoting your holder number or ..........???
They send you a card. You call the call centre to make a booking quoting the shareholder code. The hotel is meant to check the card but do not seem to. Cheers
MCK results are a nice improvement on previous year.
Trading now at a PE of about 7, seems to me that there is some value.
Especially considering that the City Spring profits are not included.
What do others think.
MCK
22/02/2012 16:46
ADDRESS
REL: 1646 HRS Millennium & Copthorne Hotels New Zealand Limited
ADDRESS: MCK: MCK - FY2011 Chairman's Review
CHAIRMAN'S REVIEW
--Financial Performance & Financial Position
The Board is pleased to advise shareholders that for the year ended 31
December 2011, Millennium & Copthorne Hotels New Zealand Limited ("MCHNZ")
reported a profit attributable to owners of the parent of $20.6 million
(2010: $10.1 million loss). Given the earthquakes experienced in Canterbury
during 2011 and its effects on trading generally, this is a very creditable
result.
Clearly, the most significant events of 2011 were the Canterbury Earthquakes
in February and the 2011 Rugby World Cup in September and October. The
earthquakes and their related aftershocks have had and will continue to have
a significant impact on the Company's operations in Christchurch and other
parts of the South Island although the negative effects were partially offset
by the positive impact of the Rugby World Cup in Auckland and Wellington in
particular.
Although revenue and other income for the year decreased to $111.9 million
(2010: $115.9 million), MCHNZ's profit before tax, non-controlling interests
and associates showed growth from the same period in 2010 and increased to
$28.9 million (2010: $14.9 million) reflecting a number of one-off gains,
many of which related to the earthquake as well as increased productivity
during 2011. CDL Investments New Zealand Limited increased its after-tax
profit by $0.9 million to $3.8 million reflecting increased sales activity
and a more positive New Zealand property market. First Sponsor Capital
Limited made a positive contribution to MCHNZ's profit providing $4.6
million.
Earnings per share reflected the return to profit and the one-off gains at
5.90 cents per share (2010: -2.90 cents per share).
Shareholders' funds excluding non-controlling interests as at 31 December
2011 totaled $419.1 million (2010: $412.6 million) with total assets at
$660.3 million (2010: $630.8 million). Net asset backing (with land and
building revaluations and before distributions) as at 31 December 2011 was
119.9 cents per share (2010: 118.0 cents per share).
--Effect of the 2011 Canterbury Earthquakes
In the 2011 Interim Report, we set out some of the effects of the Canterbury
Earthquakes. By way of update:
? Reservations for Millennium Hotel Christchurch and Copthorne Hotel
Christchurch will not be accepted until 2013 at the earliest. Both hotels
remain in the 'red zone' and access remains restricted given the ongoing
aftershocks. Repair works have not begun on either hotel as a result but
both hotels have sufficient business interruption insurance to see them
through 2012.
? In November 2011, a confidential settlement was reached with the insurers
and the owners / landlord of the Copthorne Hotel Christchurch City (Durham
Street) for the damage / loss to this property. The lease on the hotel was
terminated and the hotel was demolished. The Company has no ongoing
liability for this hotel as a result. The Company's business interruption
claim from the February 2011 earthquake is still to be settled;
? Other business interruption claims for the February 2011 earthquake remain
ongoing and discussions are continuing with the insurers. A confidential
settlement of the claims relating to the September 2010 claims was concluded
in respect of the Company's Christchurch hotels.
As stated in the 2011 Interim Report, Insurance for the 2011/12 period was
renewed for the New Zealand hotels, albeit at a significantly higher premium
reflecting the current risk profile and pricing in the New Zealand market.
The Company has had the benefit of being able to access the Millennium &
Copthorne Hotels' global insurance policies and its insurers and this has
been beneficial in the handling and settling of claims.
As detailed in the financial statements, the cost to the Company in terms of
insurance excesses and other related expenditure in 2011 was approximately
$1.1 million. Provisions of $2.4 million were made in relation to the 2011
earthquakes and their after effects during the year.
On behalf of the Board, I do wish to extend sincere thanks to our staff, both
past and present in Christchurch, and to our Operations team for their
diligence during this extraordinary period.
--New Zealand Hotel Operations
Revenue for the New Zealand hotel operations (16 owned / leased / operated
hotels excluding 12 franchised properties) for the period under review was
$97.4 million (2010: $103.6 million). Hotel occupancy for the period was
down to 64.3% across the Group (2010: 66.3%).
The Company's hotels in Auckland and Wellington in particular benefitted from
the 2011 Rugby World Cup held in September and October enjoying solid
occupancies and achieving good room rates and yields. However, the ongoing
effects of the February 2011 earthquakes combined with soft visitor numbers
from historically strong markets such as the UK / Europe and North America
did affect the hotels in the Bay of Islands, Rotorua and Queenstown. Asian
markets are starting to show some signs of improvement and we are focusing
our resources on securing inbound business, particularly from China, which is
an increasing market.
--CDL Investments New Zealand Limited ("CDLI")
CDLI announced an operating profit after tax for the year ended 31 December
2011 of $3.8 million (2010: $2.9 million) and reported an increase in its
section sales from 54 in 2010 to 77 in 2011. CDLI is also expecting to
report increased sales in 2012 reflecting a more positive property market.
CDLI, along with its joint venture partners, successfully completed a private
plan charge for land located in Christchurch which is to be developed in the
near future and which was unaffected by the recent earthquakes.
CDLI has declared an ordinary dividend of 1.4 cents per share. MCHNZ's stake
in CDLI is currently 66.28%.
--Offshore Operations - Australia & China
In Australia, short term leasing of the units at the Zenith Residences
continued during the year with occupancy of over 95% recorded. While
marketing of the units has continued, no additional sales were made in 2011.
The Company's 34% associate, First Sponsor Capital Limited (FSCL), reported a
profit of US$ 9.5 million for the financial year ended 31 December 2011. The
Company's share of the profit is NZ $4.6 million.
As at 12 February 2012, 711 out of 726 residential units of the Chengdu
Cityspring project have been sold either under sale and purchase or option
agreements. 98.6% of the sales proceeds have been collected for those
residential units sold under sale and purchase agreements. In addition, 527
of the 709 commercial units launched for sale in July 2011 have been sold
either under sale and purchase or option agreements with 65.1% of the sales
proceeds having been collected. Revenue and profit recognition requirement
for the residential units is expected to be met in 2012. Proceeds from the
residential and commercial sales will finance the development of a 195-room
hotel, M Hotel Chengdu, which will be franchised by the Millennium &
Copthorne Group.
In November 2011, FSCL successfully tendered for two parcels of land in
Chengdu. Earlier in 2011, directors from MCK and Millennium & Copthorne
Hotels plc visited the area and met with local government officials. The
total area of land is approximately 270,500 square metres and will be able to
be developed as residential and commercial developments including a hotel and
convention centre.
In November 2011, the Company announced that it had increased its investment
in FSCL by an additional USD 30 million taking its stake back to 34%. The
additional capital was provided as part of a capital call to allow FSCL to
purchase the aforesaid Chengdu land. A waiver was obtained from the NZX in
order to proceed with the increase.
In 2011, after regaining control of its property operations in the Guangdong
province, FSCL commenced with a restructuring of its asset portfolio via the
disposal of some land parcels in Qingyuan and Huizhou, and buying out of the
minority shareholder of another land parcel in Dongguan.
--Dividend Announcement
The Company has resolved to pay a fully imputed ordinary dividend of 1.2
cents per share payable on 11 May 2012 (2010: 1.2 cents per share). The
record date will be 4 May 2012.
--Outlook
With the ongoing issues in Christchurch and the number of international
visitors still weak due to global economic conditions, 2012 will be another
challenging year for different reasons. That said, cost management at the
hotel operational level is currently good and the Company's other business
units are expected to be profitable. 2012 will also see the profit from the
Chengdu Cityspring development being recognized in the first half of 2012
which will also benefit the Company.
The Board and Management are therefore cautiously optimistic about the
Company's prospects over the coming year.
--Management and staff
On behalf of the Board, I thank the Company's management and staff for their
work and commitment during what has been a challenging and extraordinary
year.
Wong Hong Ren
Chairman
22 February 2012
End CA:00219874 For:MCK Type:ADDRESS Time:2012-02-22 16:46:13
© Direct Broking Limited 2005.
Wouldnt get too excited , Rugby world cup has led to a few companies posting good results (sky city another) next year will no doubt be softer , and their insurance on the christchurch hotels will run out eventually. 2013 sounds a little optimistic for the chch properties
Very frustrating stock this. Just reading the half yr report. Net asset backing now 129 cps. Pity they don't maybe sell a hotel and conduct a share buyback to close the gap to the share price.
hi Moosie I am still sitting, the gap gets wider ....is the market getting dumber ????
Shareholders' funds excluding non-controlling interests as at 31 December 2013 totalled $466.4 million (2012: $443.3 million) with total assets at $719.2 million (2012: $686.1 million). Net asset backing (with land and building revaluations and before distributions) as at 31 December 2013 increased to 133.4 to cents per share (2012: 126.8 cents per share).
Went to the p.o.box today , was a card for oversized item. Thought i had a present from someone. But no , it was an offer document from MCK bigger than a phone directory.
I really cant be bothered reading it , do i need to? Is it just telling us whats going to happen or are their shares we can apply for
Hi Ratkin ,
you should read the covering letter .... Forget the phonebook. There are some options if you want shares in the Chinese property development company , do you want the script , do you want the shares lodged in a broker ac....or do you want to liquidate .........
I held some of these about 5-6 years ago and the sp then was about 71-72 from memory. Low divy and tightly held. At least they are consistent.
Its not a terrible decision in that case. They are flicking the shares off (to us) Annoying part is that to take part in the block sale we have to provide a photocopy of our passport details, such a lot of effort for a lazy person like myself.
Might just sell all my shares in the next few days
I find it very out-dated that whilst we can buy and sell existing shares with a few keystrokes and the click of a mouse, taking part in anything else involves old fashioned paper and signatures, sometimes an emailed scan of a document is acceptable but that is pushing the boundaries.
Recently scanned entire passports, birth-certificates, marriage certificates, education certificates & more for an upcoming change of country so I have little sympathy for you :p.
I definitely would not want to be holding equity in a Chinese property developer at the moment either.
Best Wishes
Paper Tiger
For a stock thats gone up 90% in a year, it's not had much of a mention on the forum recently .
tourism certainly is giving it a boost .
PE of 8.7 . Could it go to 10 ? May be there are a few opinions here ? Always on small amounts , but seems pretty steady .
Recently bought a rather small amount at $2.70. Should be a good year.
I notice that it's selling way below NTA. Is that because people don't believe the business is good enough to realise a profit relative to the value of assets with no likelihood of anyone buying to strip?
Any one wanting to find out a bit more about MCK should go to www.nzx.com then type in MCK and read their overview, before going to announcements and reading MCK's interim report.
Of interest to us will be MCK's full year result which is due late February.
The NZ listingThe NZX listing gives the advantage of having the market set the value of share price.
It is also easier to raise capital or to borrow, if the company is listed.
The problem for us shareholders, is whether the controlling shareholders will share the spoils with us.
Yes, valid reasons, percy, although I would think that the parent company - and its ultimate parent, the Hong Leong group - would be able to borrow more cheaply than MCK. Current borrowings from the parent are shown at 2.27%, admittedly for a relatively modest $5.8m.
The other point to bear in mind is that the Hong Leong Group controls "only" 65% of Millenium and Copthorne Hotels plc, the owner of the company that owns 75% of MCK! So a takeover of MCK wouldn't be a simple matter.
Yes, it is a very tightly hold stock with a Chinese majority owner. Low liquidity and all these things, but still - isn't this uptrend chart a beauty? Based on last years profits it still looks reasonable priced (PE 10), but than - yes, it has a tendency to trade at much lower PE's ...
Attachment 8632
Discl:
holding (a small parcel);
Just wondering if anyone has any idea as to why the uptrend for MCK this year? I don't see news that would be causing this.
Not that Im complaining, my holding is up :-)
You haven't seen any news of the massive tourism boom ? Visitor arrivals continue to trend upwards as NZ is flavour of the month.
Here is an article from over a year ago .
http://www.stuff.co.nz/business/7544...-export-earner
Bingo.!!!!!!!!!!!!!!!!!!
Full house.!!!!!!
A Cracker.!
Indeed, was so happy with the CDI results that I nearly missed this beauty:
o Profit after tax and non-controlling interests $40.4 million (2015: $21.7m)
o Profit before tax and non-controlling interests $70.5 million (2015: $40.0m)
o Group revenue $172.0 million (2015: $136.5m)
o Shareholders' funds excluding non-controlling interests $489.1 million (2015: $389.3am)
o Total assets $713.9 million (2015: $590.0m)
o Earnings per share (cents per share) 25.56 cents (2015: 13.70 cents)
nice asset backing as well ...
Puts us on a PE of 11 ish ?
http://uk.reuters.com/article/uk-mil...KBN15W0QO?il=0
Alternative news from uk side of the world
I am trying to calculate the fair value of NTA purchased with each MCK share. For this would I adjust the cost values of the development properties held by CDI and Zenith to fair value (approx 170m to 375m), and also take into account that MCK shareholders only 'own' 66.7% of CDI's NTA's? Have been doing some research on MCK and found this quite interesting, but am quite new so please correct me if I am wrong.
Was referring to the NZD 78.09m fair value that MCK placed on the Sydney Zenith Residences in note 11 of the financials, rather than the 52.2m cost value which is used in the statement of financial position.
Very interesting. Would you say the value is closer to cost then? Seems as though you know a lot about this!
Thanks for the background. Wouldn't be able to add anything to that. For what its worth, based on the fair values in the financials I'd put NTA at $4.01 per share (based on 158m ordinary and preference shares), meaning they are trading at a 26.5% discount to NTA. Definitely seems like a large enough discount to cover any poor valuations or any correction in the property market to me.
Really looking for some solid tourism diversification (other then thl) Mck is looking like a decent pick for this type of thing. Thoughts holders and watchers?
If anyone has any other tourism picks please post!
Thanks in advance!
cant say the Palmerston North Copthorne was all that impressive this last weekend, but I do like the share. Revals could still occur and price is good relative to NTA.
The Auckland downtown is coming back on stream and the old Rendevous now being managed mid town
It needed to pull back from over the $3 mark and it did, so I am thinking a reasonable entry point.
In my opinion fundamentally a great long term hold as liquidity can be an issue for short term holders. Book value well above share price, reasonable PE, growing sector, new hotel in Auckland CBD nearing completion (nearing may be the wrong word). One reservation is that they may find it hard to beat last years NPAT if CDL sales are affected by a declining property market.
Discl: Not currently holding, recently sold because of the liquidity issue. DYOR
Half year results are out - and still improving on the 2016 result (which was popped up by a one off windfall).
https://www.nzx.com/companies/MCK/announcements/305046
Only fly in the ointment I can see is the slightly retracting occupancy rate. Just wondering whether this is one of the early indicators that we as a country are milking the tourism cow a bit hard and starting to see the results to peak?Quote:
MCK’s key results were:
• Average hotel occupancy across the Group 81.3% (2016: 82.3%)
• Group revenue and other income $104.14 million (2016: $95.71 million)*
• Operating profit before finance income $42.92 million (2016: $40.72 million)*
• Profit before income tax and non-controlling interests $43.91 million (2016: $41.08 million)*
• Profit after tax and non-controlling interests $24.23 million (2016: $23.79 million)*
*in 2016 there was a non-recurring gain of $4.31m from the Millennium Christchurch insurance settlement.
Just wondering whether this is an early indicator for the things to come for the whole tourism sector (THL and similar) ... MCK should be in that regard still pretty sheltered thanks to owning CDL (property development) as well as having less tourism (and more business) exposure than e.g. THL.
Discl: satisfied holder (small parcel due to low liquidity of stock);
I like as well BP, but am still reviewing in detail.
Note that only half of the Lions Tour was in the period.
They say 1.9% incr in NPAT but if you take out that non-recurring insurance item from the previous half years accounts it was significantly higher.
However I am not certain whether we should take that out - there are a number of possibilities around this line item eg was it from a much earlier period ??
Also it could be (and should be from the insurers perspective) a genuine loss that would've been earned if not for the damage. so I'm still working through that...
as I said ... a solid result, not an outstanding result ;); But they are still in my books with a P/E of 10.7 and a 11% CAGR - not too shabby, either.
As indicated - I don't think they are too dependant on the (cyclical) tourism sector, and there is still a shortage of beds across New Zealand, i.e I expect them to stay in the coming year "well positioned". Nothing spectacular, but solid.
If we are talking about investment, I like boring ... and this one fits the bill ;);
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;
https://www.nzx.com/announcements/313928
Nice result..missed it last night so made for a surprise when I saw it this morning.
Hmm... Better do my homework that I have yet to do...
Between MCK & CDI these could be quite handy set and forget holds...
Discl ..hold small parcel of MCK....
Yep, solid result - and good outlook, given that two of their hotels just came "on-line", i.e. cost in 2017 and revenue in 2018.
Holding both MCK and CDI ... and having difficulties to decide which one to like more;
CDI did so far a better job of capital appreciation in my portfolio than MCK, but this is just a timing issue. Anybody holding both for more than 2 years would say the opposite (holding CDI for several years, but rather new to MCK);
MCK is obviously exposed to the cyclical tourism sector, which is sometimes good (like now) and sometimes not so good.
CDI - developing (non-speculative) properties - always in demand.
Both have ok-ish past PE's and very promising growth rates (which obviously will not continue to grow in infinity)
CDI - avg PE 17.4, backw CAGR 35.4
MCK - avg PE 15.2, backw CAGR 12.2
I think both are worth a punt ... just need to keep reminding me not to over-expose (low liquidity) ;);
Yeah very solid result, and as you say two of their hotels coming "on-line" this year to contribute to a full year of results will bring more of that growth we've come to see (New Plymouth contributes from Q2 from memory).
Book value is now 3.71 - can't complain with that margin of safety with current sp.
The good thing with MCK is that the cyclical tourism sector can be somewhat offset by CDI, so you get the best of both worlds.
Disc: hold both MCK and CDI
Can anyone tell me what the deal is with MCK? Low payout vs earnings, and a share price half its asset value?
Check their Asset Revaluation as a %age of earnings.
(Ie, 'paper' earnings)
Last year's interim report was announced on 4th August.
Not far away.
I am expecting it will be sound, as their May 31st agm presentation was extremely positive.
I finished my buying today at $3.20.
Pleasing seeing a large shareholder increasing their holding.
Aberdeen Asset Management now own 12.8913% up from 11.8882%.
The news this morning is saying we are running out of hotels haha. hopefully that's good for mck
Interim result just out.
Stunner.!!!
EPS up 24.34%
Revenue up 22.44%
CDL operating profit up 24.91%
Outlook Positive.
Can't ask for more.
Aberdeen Standard Investment topped up another odd 360k shares - holding now 13.2 %.
http://nzx-prod-s7fsd7f98s.s3-websit...439/286230.pdf
I guess Scottish people recognize value when they see it ... ;);
I was obviously referring to their roots and their HQ:
http://contact.aberdeen-asset.com/en...ncipal-offices
https://www.google.co.uk/maps/place/...4!4d-2.1212519
Sigh - not sure what your point or intention is - but this is clearly a quite stupid remark in the context of this thread.
Aberdeen Standard Investments is clearly a company with deep Scottish roots. That is all I was commenting on. I did not comment on the nationality or race of the person preparing the SSH (though - by all we know, he might be a Scott, but this would be irrelevant in this context).
Well may you ask. To those of us of a mature age it brings to mind the Dunedin based insurance company - Standard Insurance Ltd - which "failed" in the 1960's due to unauthorised dealings by its Sydney branch manager. Not only did investors lose their entire investment but the shares were partly paid, with an uncalled liability of ten shillings per share! But enough of this uncalled for diversion -and back to McK!
Apologies to all.
:)
An excellent result out today
Dividend increased 25% to 7.5 cps.
Outlook cautious.
double bottom @ $2.80?
Attachment 10490
This might be another chance to buy for less than $3 into a company with a NTA of $4.04, a PE of 9 (based on 2018 EPS and today's SP) a revenue CAGR of 10 and a Earnings CAGR of >20!
Assume market sentiment is currently a bit depressed due to the (quite unrelated) THL trouble. MCK runs hotels (Millenium and Copthorne) and owns real estate development (majority shareholder of CDL Investment).
Only big drawback I can see is the limited liquidity of the share market ...
Take care.
Last announcement.Annual report.
Aucland Hotels.A lot of competition.Room tax and trouble getting staff, meant a poor outlook.
CDL property.Again a muted outlook.
Disc.I sold because of the poor outlook,and extremely low dividend yield.
Like you I added to my HGH holding.
.
Outlook from the latest annual report:
Does not sound like doomsday coming. Think as well that they are less impacted by tourism - Millenium and Copthorn are typically looking after business travelers (less cyclical and less cost sensitive). Thought as well that Auckland has still problems to host all the visitors for the America's cup - don't they?Quote:
Although there are significant challenges
ahead, the Board is confident that MCK
will do well in 2019. We remain positive
about the year ahead and expect growth in
2019 although slower.
So yes, growth will be slower, but it will happen.
Dividend yield: 2.7% - fully imputed, i.e it is net equivalent to a 3.6% bond; Agreed - not stellar, but better than some of the quasi-bond shares (AIA, FPH or similar) and comparable with recent BBB rated bonds (which don't offer the opportunity for capital appreciation).
I have just reread The Chairman's Review.
I stand by my "take care" statement.
Very illiquid with 680 on the buy side ,and over 40,000 on the sell side.
Any body with any ideas what this may mean for MCK/CDL.
My opinion would be that they both disappear from the NZX unfortunately.
Not necessarily - the takeover offer is for the British company Millenium & Copthorne Hotels Plc, which is a majority shareholder of MCK which is a majority shareholder of CDI.
If this takeover goes through, than this does not change in itself anything for MCK and CDI, other that the majority shareholder of MCK has a new owner and board.
Obviously - it is possible that the new majority owner of MCK decides at some stage to make a takeover offer for MCK and / or CDI ... but this would be quite unrelated to the first takeover. If it happens than I would expect that both share prices would soar - both companies trade (despite being very profitable entities) well below their NTA's and at low PE's - and in a takeover they would need to commission an independent report.
All three possibilities could occur, being a full-takeover of the subsidaries, doing nothing, or selling down their stake in the NZ subsidiaries.
The "Do nothing" option could result in a change in the dividend policy. I don't know if it would be an increase (get more cash out) or a decrease (retain cash to build the business).
The sell-down option could put pressure on the share price in the short term, but it would increase the liquidity which is likely to be favourable in the medium to long term.
You could get a ticker change for CDL because having City Developments Ltd (CDL) indirectly owning CDL could be a bit confusing.
If the NZ overseas investment office gets picky and doesn't provide its clearance in a timely manner could see MCK's stakes in MCK and CDL being floated. This would bypass the this regulatory approval within the takeover.
A serial underperformer. Is that going to change?
https://stocknessmonster.com/charts/cdi.nzx/
There is a lot not to like about this chart.
This time it's different?
Actually - this is the MCK thread, but hey, given that they are the majority shareholder of CDI - I shall take the bait:
Average EPS since 2010 for CDI was 7 cents per share, and there is a significant rising trend visible (in 2010 it was 1 cent per share and in 2018 it was 12 cents per share).
This makes a 10 years average EPS of less than 10. Ah yes - and earnings CAGR during this timeframe was 26. Not too bad, isn't it?
NTA at book value is 76 cents, but this is only because they keep their properties at the lower of purchase price and revaluation price in their books. Based on their latest valuation - their property assets are worth $338m - this makes (divided by 278m shares $1.21 per share.
And actually - for investors with an attention span longer than that of a fruit fly - there is even some uptrend in the share price visible ;):
Attachment 10607
But yes, this (CDL) is a share for Buffett - type investors who are able to see deep value over yesterday's hype, who buy cheap and sell dear. Everybody else who just follows yesterday's momentum - just move on, nothing to see here ...
And btw - similar (but not quite as great) metrics as above would apply to MCK whose thread this is ... they (MCK) are in my books with a average backward PE of 12 and and earnings CAGR of 21. Still - quite juicy, isn't it.
Discl: hold both, but more CDI than MCK ...
Well a very weak first half as expected.
Talk that they will match last year's full year result, will mean they will have to go gangbusters in their second half.
And I very much doubt that will happen.
The last buyer at $2.71 has been taken out.Plenty of sellers should anyone want to buy any.
I exited today, after mulling it over for quite a few weeks. Only had a small holding. Got out at $2.73. Stayed in a few of their hotels recently on a road trip and nearly all need some sort of refreshing. Probably stayed in the wrong ones. Better places to park these $.
Content moved. Nothing to see here.
Hope it means good news for CDL and MCK and by default me.