CDL & CDI ... Another Great Result

[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.

[BlackPeter]

Sort of wondering which impact (if any) the recent earthquakes will have on the Canterbury property market and CDI in particular? If we learn from the previous Christchurch Earthquakes, than some people might want to move away from the worst effected areas (i.e. parts of the Hurunui District and Kaikoura) - and picking the closest unaffected town as the new place to live might make sense for them.

Time to buy some more CDI shares?

Discl: holding;

[beetills]

Share price rising nicely.
Good result coming up perhaps?

[BlackPeter]

Share price rising nicely.
Good result coming up perhaps?

SP obviously not such a strong indicator given the low liquidity, but yes, given the amazing HY results and the positive outlook would I expect another outstanding result ...

The other question is obviously how the future looks - property prices seem to at least move towards some sort of plateau. However - property demand looks like to stay strong in the centers they operate in, so I could imagine in the coming year a slower growth rate, but it still should keep growing.

A somewhat quieter market could even be an opportunity to find some further development properties at more reasonable cost.

Discl: holding;

[Vaygor1]

SP obviously not such a strong indicator given the low liquidity, but yes, given the amazing HY results and the positive outlook would I expect another outstanding result ...

The other question is obviously how the future looks - property prices seem to at least move towards some sort of plateau. However - property demand looks like to stay strong in the centers they operate in, so I could imagine in the coming year a slower growth rate, but it still should keep growing.

A somewhat quieter market could even be an opportunity to find some further development properties at more reasonable cost.

Discl: holding;

Yes BP. A good sign when a spike up appears about the same time the auditors and others get to see the FY results.

CDI's timeframe to convert land purchases into section sales is so lengthy, I would expect the increase in NZ property prices to reflect in increased earnings for CDI for a long time yet. Looking forward, perhaps a reduction in the number of sections sold per annum has more likelihood to slow things down than a reduction in profit/section-sold?

[BlackPeter]

Yes BP. A good sign when a spike up appears about the same time the auditors and others get to see the FY results.

CDI's timeframe to convert land purchases into section sales is so lengthy, I would expect the increase in NZ property prices to reflect in increased earnings for CDI for a long time yet. Looking forward, perhaps a reduction in the number of sections sold per annum has more likelihood to slow things down than a reduction in profit/section-sold?

Like your thinking (though obviously - any correlation between auditors seeing unpublished results and SP spike would be purely coincidental) ... and yes, you are right - they had from memory in the last report still more than $100m worth of development properties on their books - and this is at book value (i.e. at the price they paid for it). I don't think they will soon run out of earnings opportunities.

[podg]

If the timing of previous announcements are any indication, the FY numbers could be out on Friday. Will be interesting to see if a significant improvement in profit will be matched by a corresponding rise in the dividend. Just as interesting to see if the company has any plans to address shareholder concerns about the lack of liquidity.

[blackcap]

Yes BP. A good sign when a spike up appears about the same time the auditors and others get to see the FY results.

Isn't that a bit naughty? :P

(goes something like this: Auditor to wife's/husband's brother "those CDI are looking a bit oversold the last few months aren't they"
Brother: "are you saying they are a buy?"
Auditor: would I suggest such a thing...wink wink nudge nudge.....

[beetills]

Can be a bit dangerous acting on a wink.Reminds me of what George McGovern said after voting for the TONKIN RESOLUTION during the Vietnam war.
''Never to trade what i see as truth for a winking assurance in the backroom''''
Turns out he was correct,LB was full of b/s.

[podg]

$300k of trade yesterday. About the highest value from one day's trade in the past 12 months. Almost a flood in CDL terms. Back to normal today ....$3k of trade.