StamfordLand: BT article stating that co is undervalued. Co’s Aus hotel assets has never been revalued but portfolio of A$382m solicited an offer for A$850m in 2008, translating to NAV gain of more than $0.60 per share. Recently, co has mentioned that it might redevelop some of its hotel properties, possibly leading to a revaluation....
Other properties such as North Ryde slated for redevelopment will also net a A$380m gain in land value before development costs. BT highlights that chairman and controlling sh/h Mr Ow has been buying up shares in co and recently share price has risen which may indicate mkt interest in stock…
Co currently trades at P/B 1.34x, close to high of 1.4x. At trailing P/E 10.49x, with ROE of 6.2% in 2010 and 1.0% in 2009, co is not particularly profitable. However, in previous 2 quarters, gains were largely attributable to revaluation of properties. Stock is a revaluation play but note that earnings are not impressive.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment