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05-08-2019, 10:21 PM
#231
Member
It's just my curiosity. CDI as a property developer, how come it doesn't have any mortgage held?
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06-08-2019, 05:56 PM
#232
Member
Originally Posted by Lease
It's just my curiosity. CDI as a property developer, how come it doesn't have any mortgage held?
as long as I have been with CDI, it has never had debt, and I have been a shareholder for more than 20 years. it started off with a load of tax-loss credits so never felt the need to borrow. rare, but effective
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09-08-2019, 03:57 PM
#233
Their net assets are probably worth double the current shareprice.
They seem on track to post a record profit this year.
The dividend should at least hold steady
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09-08-2019, 04:07 PM
#234
I'd be very surprised to see record profits given the first half was well down on last year, but I agree they have a big stash of land to develop, a wad of cash to buy more land, and they continue to trade at amazing multiples.
I had an interesting read through their old GFC financials - it looks like if the **** really hits the fan the company will just hibernate, sit on their land, and emerge in spring. No debt, apparently low fixed overheads, solid company.
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09-08-2019, 04:49 PM
#235
Reread the half yearly they are expecting a solid second half
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09-08-2019, 04:50 PM
#236
They won't want to end their 7 year run of increasing profits.
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09-08-2019, 05:00 PM
#237
I'll be very happy to be proven wrong, but with first half sales down by 1/3 I doubt they will be able to recover sufficiently in the second half. Commentary states conditions are challenging and the market is soft despite believing the second half will improve on the first.
I'm sure they would like profits to increase again, but they don't necessarily get to decide that if conditions are against them. With a PE based on last year's results of about 6, the market is clearly pricing in some reduce profits. I still hold and am confident they'll do nicely in the long term.
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09-08-2019, 05:23 PM
#238
Member
One concern is CDI largest shareholder is MCK. MCK has properties at global presence. If, say, there is economic recession in next a couple of years, and MCK get into trouble. Is it possible MCK take cash from CDI?
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19-08-2019, 05:13 PM
#239
Member
Originally Posted by Lease
One concern is CDI largest shareholder is MCK. MCK has properties at global presence. If, say, there is economic recession in next a couple of years, and MCK get into trouble. Is it possible MCK take cash from CDI?
take cash from CDI ….. it what way, do you think??
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19-08-2019, 05:33 PM
#240
Originally Posted by podg
take cash from CDI ….. it what way, do you think??
The only clean way to do it is distributions to MCK and then MCK does a distribution to its shareholders etc.
The distribution could be a dividend, share buybacks or similar.
There's also dirty distribution methods whereby CDL makes loans to the parent but i think that would need shareholder approvals.
Last edited by Scrunch; 19-08-2019 at 05:34 PM.
Reason: Add comma
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