MCK - Millennium & Copthorne Hotels.

[BlackPeter]

Maybe the result is better than it seem, if we consider Auckland waterfront hotel was not contributing due to refurbishment.

fair enough ...but I assume they didn't count that into the lower occupancy rates? Or do you think they did ...

[forest]

BP you are right, been in contact with mck and they confirmed your assumption.

[BlackPeter]

BP you are right, been in contact with mck and they confirmed your assumption.

cheers for checking and letting us know

[JoeGrogan]

Been a while coming but auckland waterfront hotel opens.....

http://www.nzherald.co.nz/business/n...ectid=11931722

Excited to see the extent to which the new hotel will affect earnings, even though its only a few months.

[JoeGrogan]

"Consent was also granted to City Developments' planned acquisition of 34.8 per
cent of Millennium & Copthorne Hotels, for up to about $1.3 billion, which excluded
a special dividend of about 38c per share.

The company was proposing to increase its existing ownership in Millennium & Copthorne Hotels,
which held interests in Millennium & Copthorne Hotels New Zealand and CDL Investments New Zealand,
which had interests in sensitive land and collectively assets valued at more than $100 million.

City Developments owners included Singapore's Hong Leong Group with 48.4 per cent.

Millennium & Copthorne Hotels via its interests in Millennium & Copthorne Hotels New Zealand
and CDL Investments New Zealand and other subsidiaries, had land interests in the Far North
District of approximately 5.23ha, Auckland Council region (27.86ha), Hamilton City region
(101.48ha), Rotorua District (1.01ha), Southland District (0.88ha) and Nelson City region (11.78ha)."

http://www.nzherald.co.nz/business/n...ectid=11985547

Interesting, thanks for sharing.

[JoeGrogan]

Surprising announcement, not too many details though, does say the magic words "earnings accretive" though

https://www.nzx.com/announcements/313706

[Benny1]

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

Hmmm...might be some reading to do this weekend!

Do like the new bar in the bottom of the new M Social hotel

[BlackPeter]

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

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;

[Benny1]

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....

[BlackPeter]

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) ;