CDL & CDI ... Another Great Result

[willy_wonker]

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]

Are these part of your income portfolio ?

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

[Snow Leopard]

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]

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]

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]

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]

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]

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]

I've nearly doubled my $$ on CDL. Go you good thing.

[Capitalist]

Hat-tip to C9 here again folks, just like PVO

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]

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


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]

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.]

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]

Interesting reading.

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

[PLYNCH]

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

[Bling_Bling]

I've never heard of Beantown. What or who is Beantown?

[Burgerbun]

quote:Originally posted by PLYNCH

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

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[]..except I think his is called Beanbrain....maybe a relative[?][B)]

[PLYNCH]

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]

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]

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.