I am currently going through the report and am liking what I am seeing. BP you nailed it with your post. EPS is 12 cents yes really. This has to be the bargain of the century. Even a 3.5 cent fully imputed dividend makes the yield about 6.3%.Originally Posted by BlackPeter
Annual report is out:
http://nzx-prod-s7fsd7f98s.s3-websit...312/296920.pdf
Book value per share (not even taking capital gains into account) is 75.7 cents. Add a fully imputed dividend of 3.5 cents - and this share is currently trading below asset value.
Ah yes - and if we take their assets at their current (i.e. not just book-) value, than their real estate alone is worth $1.52 per share. Does 80 cents per share sound too dear for this?
On top of that - EPS seems to hang around 12 cents p.a. (don't expect further earnings growth this year - they said they need to be flexible with pricing to keep revenue up). 12 cent EPS for a 80 cent share, this is a PE of 6.7
Nobody should say that it is hard to find very friendly priced shares these days ... sometimes I don't understand the markets;
One caveat that I did read in the Director's review was the following:
"While we are confident that 2019 will be profitable, we are already seeing a slowing property market and this sentiment will impact our section sales in coming months. 2019 will therefore necessitate some degree of flexibility in our sales approaches in order to maintain our positive sales tempo."
To me that means that profit will probably be down slightly in 2019, maybe back to 2016-2017 levels when profit were $27m- $32m and then EPS will be about 9.7- 11.5CPS. Not really a worry on a SP of 82-85 cents.
Just be wary if purchasing, this stock is not that liquid, so you may require patience in purchasing and selling a holding.
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