MCK - Millennium & Copthorne Hotels.

**Scrunch** · 09-06-2019, 08:51 PM

Originally Posted by beetills

Any body with any ideas what this may mean for MCK/CDL.
My opinion would be that they both disappear from the NZX unfortunately.

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.

**Scrunch** · 09-06-2019, 08:59 PM

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.

**kiora** · 10-06-2019, 08:31 AM

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?

**BlackPeter** · 10-06-2019, 09:01 AM

Originally Posted by kiora

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

:

CDI long.jpg

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 ...

**percy** · 01-08-2019, 09:18 AM

Originally Posted by percy

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.
.

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.

**audiav** · 01-08-2019, 12:50 PM

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 $.

**percy** · 01-08-2019, 09:51 PM

Originally Posted by audiav

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 $.

Otepoti caught me out.
Thought it must on NI East Coast,,lol..