CDL & CDI ... Another Great Result

[Vaygor1]

Updated my annual chart before the crash but only posting it now (prompted by CDI's announcement today).

Ref https://www.nzx.com/announcements/350145

Attachment 11131

I can't detect any goodwill, trademarks, or copyrights in their Annual Reports to-date, so NTA/share should be the same as the Group Equity column.

Official glossy CDI Annual Report for year end 31-Dec-2019 should be out any day now.

I'm not surprised at the contents of their announcement this morning. MCK will be wanting CDI's dividend badly. I'm actually a bit surprised they didn't increase the previously announced dividend. They can certainly afford to.

PE Ratio as I type is 5.7 ... the lowest its ever been on the chart

Disc: Still a long-time happy holder

[BlackPeter]

Updated my annual chart before the crash but only posting it now (prompted by CDI's announcement today).

Ref https://www.nzx.com/announcements/350145

Attachment 11131

I can't detect any goodwill, trademarks, or copyrights in their Annual Reports to-date, so NTA/share should be the same as the Group Equity column.

Official glossy CDI Annual Report for year end 31-Dec-2019 should be out any day now.

I'm not surprised at the contents of their announcement this morning. MCK will be wanting CDI's dividend badly. I'm actually a bit surprised they didn't increase the previously announced dividend. They can certainly afford to.

Disc: Still a long-time happy holder

Timely reminder that there are some gems in the market hiding at plain sight.

The outrageous thing is - if the majority holder MCK gets a low ball take over offer (which well might happen), than the purchaser would get their (MCK's) majority holding CDL in the cheap as well.

[Scrunch]

Timely reminder that there are some gems in the market hiding at plain sight.

The outrageous thing is - if the majority holder MCK gets a low ball take over offer (which well might happen), than the purchaser would get their (MCK's) majority holding CDL in the cheap as well.

The immediate majority shareholder is MCK. Given their profit (loss) update, there's pretty much 0% chance of them looking to take over CDL until we get back to normal economic conditions.

The ultimate majority shareholder is CDL (this time City Developments Ltd) listed in Singapore.
https://www.cdl.com.sg/index.php/div...pthorne-hotels

This ultimate parent of CDL (and MCK) had SGD$6.6b of equity and SGD$5.6b of interest bearing debt. That's quite a bit and it increses to SGD9.7b if you look at the group accounts. I'd be very surprised if a company with this level of debt was going to undertake a takeover going into what could possibly be a global recession.

[blackcap]

The immediate majority shareholder is MCK. Given their profit (loss) update, there's pretty much 0% chance of them looking to take over CDL until we get back to normal economic conditions.

The ultimate majority shareholder is CDL (this time City Developments Ltd) listed in Singapore.
https://www.cdl.com.sg/index.php/div...pthorne-hotels

This ultimate parent of CDL (and MCK) had SGD$6.6b of equity and SGD$5.6b of interest bearing debt. That's quite a bit and it increses to SGD9.7b if you look at the group accounts. I'd be very surprised if a company with this level of debt was going to undertake a takeover going into what could possibly be a global recession.

I think BP was referring to MCK being taken over by "someone" and in the process getting CDI cheaply.

[Scrunch]

I think BP was referring to MCK being taken over by "someone" and in the process getting CDI cheaply.

Not sure how much investment money is sloshing around but agree that if someone bought MCK they get a lot of CDI shares. The calculations I’d done were that CDI shares are worth approximately that amount of MCK’s share price. At 70c and 229, the rest of MCK’s business is therefore about 160. Trying to split of CDI’s value within MCK incidentally increases the discount to NTA.

[BlackPeter]

I think BP was referring to MCK being taken over by "someone" and in the process getting CDI cheaply.

Correct - and this somebody would be ultimately Kwek Leng Beng and his family ... who happen to run and ultimately own the Hong Leon Group in Singapore (https://www.hongleong.com.sg/about-u...orate-profile/) who happen to be the ultimate owners of CDL in Singapore who happen to be the ultimate owner of MCK (UK) who happen to be the ultimate owner of MCK (NZ) who happen to be the ultimate owner of CDL (NZ).

Didn't say though that they will do that just now ... any further drop in SP would allow them to buy at still cheaper fractions of the real value of CDL (NZ) and MCK (NZ). If there will be a takeover offer I'd expect it at the bottom (or short after) of this bear market.

This is how rich people get still richer ... exploiting the fear in the markets.

[podg]

any thoughts as to why Standard Life Aberdeen has reduced its stake by about 1% ?? took more than a year to offload that amount ... such is the low level of liquidity in CDI ... small investors the buyers it would seem?

[clearasmud]

This stock is getting more liquid.
Can't be a bad thing.

[BlackPeter]

any thoughts as to why Standard Life Aberdeen has reduced its stake by about 1% ?? took more than a year to offload that amount ... such is the low level of liquidity in CDI ... small investors the buyers it would seem?

Who knows - might be just some clients leaving their funds (and them having to sell their shares in proportion to that) ... or it might be some deliberate action from them to push the share price down. They seem to have some sort of relationship with the Kwek family funds in Singapore (who are majority shareholders of CDL Singapore, who are majority share holders of MCK UK who are majority share holders of MCK NZ who are majority shareholders of CDL NZ.

[DarkHorse]

How severly will CDL be affected by a pandemic induced property slump? I'd love to hear any thoughts from those with more understanding of property development.