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?

[Joshuatree]

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?

Nothing much has changed since 2004; always underpriced. Long time to wait for fair value to arrive and why would it now?

[blackcap]

Nothing much has changed since 2004; always underpriced. Long time to wait for fair value to arrive and why would it now?

So what do you think is required for fair value to arrive?
I agree with Black Peters posting that it is a variety of factors holding the share price back. Xenephobia may be one, also forgot about the MCK control etc.
So maybe if CDI were to extract fair value they need to...
1. make the board more "white middle aged men" (sarcasm here but probably a big hint of truth behind the statement unfortunately)
2. open up the register
3. communicate better with shareholders

Anyone else willing to add to the list feel free.
I find it astounding that they have almost doubled H/Y profits, the outlook is for the same for FY 17 and the share price has moved but 10%.
Does this make it more "undervalued" than it was a week ago?

[macduffy]

Both these companies - CDI and MCK - have been around for a long time and neither has ever had any market profile to speak of. Perhaps the major shareholder just isn't interested - for whatever reason. Doesn't need the publicity? Nor a higher shareprice? Nor the higher registry costs of more active market trading?
May be candidates for privatising at some stage ?

[noodles]

So what do you think is required for fair value to arrive?
I agree with Black Peters posting that it is a variety of factors holding the share price back. Xenephobia may be one, also forgot about the MCK control etc.
So maybe if CDI were to extract fair value they need to...
1. make the board more "white middle aged men" (sarcasm here but probably a big hint of truth behind the statement unfortunately)
2. open up the register
3. communicate better with shareholders

Anyone else willing to add to the list feel free.
I find it astounding that they have almost doubled H/Y profits, the outlook is for the same for FY 17 and the share price has moved but 10%.
Does this make it more "undervalued" than it was a week ago?

4. Release the massive pile of imputation credits by issuing bonus shares
5. MCK should become a pure-play hotel operator. CDI shares owned by MCK to be distributed to MCK shareholders. This will increase liquidity
6. Pay a decent dividend or use cash pile to buy back shares to underlying resale value

[blackcap]

Options 4 and 5 were quite forcefully put to the directors at the last ASM. The directors were rather taken aback.
This followed a discussion on the lack of liquidity and the NZX waiver re liquidity. ( forum discussion on this above ).

After the meeting ( over a sausage roll and a coffee ) at least one independent director showed some interest in investigating these options.

fool

Good to hear that shareholders (minority) are vocal about this. I have added to my stake recently and purchased for my partner as well a while back so it might be time to start attending some AGM's and start agitating about certain issues.
Thanks greaterfool for highlighting this and I was also unaware about the imputation credits that have been built up. Yes better release them than let them go to waste and if liquidity could be improved that would add massive value.
Macduffy, points noted and yeah I can understand the majority shareholder not really caring to much about the SP as long as the company performs well the value will always be their, either accruing which if bought out (privatised) will be theirs anyway.

[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.