CDL & CDI ... Another Great Result

[Vaygor1]

You are absolutely correct - the big majority shareholder seems to have no interest in a high SP ... reflected in accounting policies and stock liquidity.

Totally agreed.
- Accounting policies on realised worth effectively suppressing NTA, Total Assets and Shareholders Funds.
- No interim dividend
- Suppressed dividend payout
- Sitting on high imputation credits
- Higher H1 unaudited results than needed meaning a scaled back FY result (comparatively)
- Payout 3 months after announcement release date. About 3 times longer than practically everyone else
- Very low profile company with minimum media exposure (this one has obvious advantages too)
- Tightly controlled share-holding structure currently requiring ongoing NZXR dispensation

Obviously - this might change at somes stage, but nobody knows when ... there is certainly no urgency for them to remove the SP restraints as long as the money from their hotel business is flowing as well.

Flow of money from CDI to MCK until quite recently was zero with MCK taking their full allocation of dividends as shares via the DRP. That was until they maxed out 2 or 3 years ago (and currently in breach of) their allowance of non-public ownership.

Still - for me was CDI so far an outstanding investment. I bought in less than 2 years ago (and accumulated since on dips). SP appreciated on my average buy in price so far by 42% - and on top of that I bought into a reliable (though somewhat frugal) dividend stream. The only drawback is for me the low liquidity ... i.e. you don't want to be stuck with a too high CDI allocation in case you need to sell for any reason.

Apart from the liquidity issue I could live with all my investments behaving like CDI ...

Same here. Despite my negativity on the dividend and liquidity issues, I fully acknowledge the excellent results CDI have delivered in the last many years. Top marks to them for that, and no complaints whatsoever about company performance. Just wish the minority shareholders were able to benefit a bit more from it.

Brian Gaynor used to mention CDI (in a negative sense) occasionally in his newspaper column some years back. Be nice to see another CDI mention from him soon, but in a positive light.

Disclosure:
Commenced holding and steadily accumulating since July 2013 (3.5 years ago). Never sold any to-date.
Average price paid: 57.6c/share
Capital gain on average buy price in the 3.5 year period (based on market price at yesterday's close): 52.8%
Received to-date and about to receive in May 2017, a total of 18.5% of the sum invested by way of gross dividends and imputation.