CDL & CDI ... Another Great Result

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Hi Parker

I also noticed the high asset backing of MCK but the fact is that MCK's return on those assets was low last year ROE 4.1% (average last 9 years 7.4%). Many investors are looking for a return of 10% plus I think.

But remember MCK has 3 possible income streams
- CDL investments
- Hotels NZ + AUS
- Joint venture in China construction industry

CDL develops residential land and is very cyclic. The cycle must have just past its bottom and if immigration and confidence improves CDL should do better.

Hotels, about half the hotel nights are not locals. John Key is our minister of tourism, in theory he should be in a position to generate more people staying in our hotels.

And thirdly the Chinese economy is growing nicely so the construction industry should do well.

I think its fair to say there is plenty of potential.