Increase in dividend to 3c.Company appears to be travelling very well.
indeed. tho no mention yet of any plans to increase liquidity or to use the imputation credits they have at their disposal. questions to be asked at the agm perhaps.
Yep, they raised the divvie. And while the second half was not as good as the first - their financials don't look shabby at all:
o Profit after tax $27.0 million (2015: $17.5 million)
o Profit before tax $37.5 million (2015: $24.2 million)
o Total revenue & other income $74.5 million (2015: $47.6 million)
o Shareholders' funds $161.8 million (2015: $140.3 million)
o Total assets $168.3 million (2015: $142.7 million)
o Net tangible asset value (at book value) 58.4 cents per share (2015:
50.8cps)
o Earnings per share 9.77 cents per share (2015: 6.33cps)
... and holding a land bank worth $297m. Incredible - if we just look at the land value would this company be already more worth than $1 per share - and it still sells at discounted prices in the early 80 cents.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
... and holding a land bank worth $297m. Incredible - if we just look at the land value would this company be already more worth than $1 per share - and it still sells at discounted prices in the early 80 cents.
Thats the bit that caught my eye too BP... the value of the land. The divi up from 2.2 is a moot point for me but the increased earnings 10 cps after tax!! I mean and the company is trading at 84 cents. Crazy stuff. Seems like management is prudent enough as well by reading the commentary. Got plenty and will not be selling in any hurry.
Is the market finally cottoning on? Up to 89 now... (although this happened at the H/Y and then it fell down again)
... and holding a land bank worth $297m. Incredible - if we just look at the land value would this company be already more worth than $1 per share - and it still sells at discounted prices in the early 80 cents.
I agree, a massively discounted SP, but will it ever really move given their Shareholding structure/profile??... like to where it should be (which is over $2/share imo).
Things get a bit distorted due to the fact the book value they keep (as per their accounting policies) is so much lower than the real value...
Quote from the release "At 31 December 2016, the independent market value of CDLI’s land holdings was $297.0 million (2015: $265.0 million). CDLI’s accounting policies require the company to carry the value of its land portfolio at the lower of cost or net realisable value and at 31 December 2016, the land portfolio at cost was $117.8 million (2015:$126.6 million)."
So the land they own is worth $300M but on the books at under $120M.. just seems to be way too conservative for the books to reflect reality.
No mention of the number of Sections Sold anywhere in todays literature that I can find.
I am disappointed with the dividend. They are cash rich and sitting on significant imputation credits.
Last annual announcement NPAT up by 16% with an increase in dividend of 0.0%
This announcement NPAT up by 54% with an increase in dividend of 36%
So compounding the two years together we get NPAT up 78.6% with a corresponding dividend increase of only 36.4%.. less than half.
With this result I would expect a 3.5c/share full imputed dividend as a minimum.
Summary of results (just adding a few more years of history to BP's nice summary):
Last edited by Vaygor1; 18-02-2017 at 09:49 AM.
Reason: Corrected a couple of typo's
a rights/bonus issue or even just a bonus issue would go some way to improving liquidity and provide some value to shareholders through something other than what is a modest dividend.
a rights/bonus issue or even just a bonus issue would go some way to improving liquidity and provide some value to shareholders through something other than what is a modest dividend.
How would a bonus issue improve liquidity? The number of shareholder stays the same, company capitalisation stays the same as does the value of the company. I cannot see how that would improve liquidity at all? even a 1:1 bonus issue (doubling the amount of shares on issue will not improve liquidity)
Ie a 10,000 trade at $.80 is the same liquidity wise as a 20,000 trade at $.40.
I agree, a massively discounted SP, but will it ever really move given their Shareholding structure/profile??... like to where it should be (which is over $2/share imo).
You are absolutely correct - the big majority shareholder seems to have no interest in a high SP ... reflected in accounting policies and stock liquidity.
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.
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 ...
Last edited by BlackPeter; 18-02-2017 at 11:19 AM.
Reason: finger trouble
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"Prediction is very difficult, especially about the future" (Niels Bohr)
I would not hold your breath.
CDI is 66.70% owned by MCK, which is controlled by Singaporean businessman Kwek Leng Bing.
Very good long term investment for him.
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Originally Posted by beetills
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