Forum Archive Index - June 2001

["Bruce Harris" <bruce99@freemessage.com>]

Am also a shareholder in CDL and am intrigued by the shareprice staying down. 
Clearly the writedown of the Sydney hotel dropped profit, but still left NTA at 
approx 60 cents. As the board have noted, if you take that revaluation out, 
profit was around 4.5 cents a share, and while that is not a great return on 60 
cents, it is a 24%return on the current 19 cents. 
I suspect the lack of available shares do not get institutions excited to take 
a plunge; while probably the assets are still overvalued, and so more 
writedowns to come- even if that brings true Net Assets down to say 50 cents or 
even 40 cents then that is still a good premium over the current price. given 
that the report on the first quarter suggests higher still turnover, then this 
picture should improve in the near term at least. Also, as noted the average 
room rates are very low by international standards- this takes away some of the 
risk that they will drop dramatically further- they can't go a lot lower. The 
only real risk seems to be the global meltdown in economies hurting tourism 
generally. this would hurt more than CDL though.  
Anyway I'm happy to hold, and do not particularly care if the price does not 
shoot up, as am happy to add a few more to my protfolio, Regards, Bruce.

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