CDL & CDI ... Another Great Result

[Getty]

Its been stated in the media, that the government may buy some hotels.

Maybe some speculators are expecting a Tranzrail type deal, a la Helen Clark.

[Getty]

Its been stated in the media, that the government may buy some hotels.

Maybe some speculators are expecting a Tranzrail type deal, a la Helen Clark.

Oops, I've become "discombulated", this comment is more appropriate to the MCK thread.

[LaserEyeKiwi]

Its been stated in the media, that the government may buy some hotels.

Maybe some speculators are expecting a Tranzrail type deal, a la Helen Clark.

i don’t know why that would happen (a trans rail type deal at least where it was sold for $1) - MCK at least says it’s hotels are currently cash flow positive, and they don’t need any cash at present (they have a large cash balance and they also chose to take shares instead of a cash dividend from CDL).

There would perhaps be some talk around the Millennium Grand in Auckland however, which is the largest MIQ hotel and which the government has sunk quite a bit of money into to upgrade ventilation systems. This hotel MCK operates as manager, but doesn’t own the building itself. I think this is perhaps a possible transaction if the government goes ahead with the plan, and the impact on MCK is probably they either get paid a break fee for their management contract termination OR they continue managing the hotel for the government.

[Getty]

I was referring to the $690M buyback of rail announced in the 23 May 2008 budget, and completed in July 2008 by Michael Cullen & Helen Clark.

On Terms including leases that Toll laughed all the way to the bank.

[podg]

Back to CDL ... more shareprice growth today ... and almost no volume on the sell side to stop it from breaking through 120-125, or even higher?

[WAIKEN]

Estimate of NTA at 31.12.21 - Rough working

Net Assets 31.12.20 257 Mill
Indep valuer margin over BV 130
Total 387

15% Gain in land value during 2021 58
2021 net profit after tax 30

Total 475
Divide by shares at 31.12.20 286

NTA 1.66

No of shares will be up a bit with div reinvestment
The trend towards tinier sections is likely to add a lot more value to their land bank

[BlackPeter]

Closing at new all time high ($1.20) and still so cheap :

[JeffW]

Estimate of NTA at 31.12.21 - Rough working

Net Assets 31.12.20 257 Mill
Indep valuer margin over BV 130
Total 387

15% Gain in land value during 2021 58
2021 net profit after tax 30

Total 475
Divide by shares at 31.12.20 286

NTA 1.66

No of shares will be up a bit with div reinvestment
The trend towards tinier sections is likely to add a lot more value to their land bank

Both the $130 and the $58 are taxable though, so you need to take off $53 for tax, which makes your $475 more like $422 - so NTA closer to $1.47 by my calculations

[podg]

Any chartists out there? There is a sharp falloff in volumes on the sell side, as there usually is, about 20k is on offer .. up to $1.50 .. !! The share price is up about 50pc in the past 7months, on today's close. spooky

[BlackPeter]

Any chartists out there? There is a sharp falloff in volumes on the sell side, as there usually is, about 20k is on offer .. up to $1.50 .. !! The share price is up about 50pc in the past 7months, on today's close. spooky

Charting is an exercise which can help you to understand where the herd is going. It makes a lot sense if you operate with statistically relevant numbers - i.e. stocks with good market liquidity and trading volumes.

CDL is a very low liquidity stock and minimal trading volumes (i.e. no herd around), market actions are often dominated by just one buyer or seller. No statistically relevant numbers.

What do you think charting this stock would tell you?