Chinwi, about that calculation, you havent accounted for dilution of share price due to rights conversion right?
I have considered it DK, but not in the usual direct way.
Actually it was some what a layman's calculation, not just considering all these ratios, present number of shares or number after the dilution in 2012 and 2015.
It is because of the nature of this Company.
For this I referred their proposed hotel projects, their location, projected room numbers and possible revenue, their cash flow plan and given EPS and the value of the company as a whole and possible NAVPS, EPS after 2015. (EPS considered by me inclusive of dilution is much lower than what they say in their plans)
In addition I have to think about future demand for the share from big funds and foreign investors and the backing they get from the Government. Rising of asset value due to the infrastructure development by the Govt. is also considered.
This REEF is high risk high return/loss entity. It may go either way. If they developed as planned I thing it will generate high interest from international funds.
I have no interest in W18 . There will be a selling pressure for it in coming month . The real game will be after they close W18 episode. For next 3 years they have no warrants. That is the period for build and inauguration of the new hotels. During that period anything could happen.
IF they introduce some other dilution in between, we will have to think again. But, according to their project and cash flow plans they have not suggested any rights or warrants for that period. Capital infusion of 1.8 billion by the way of bank loans is there.