StocksWatch wrote:Thanks lion for the wonderful analysis.
One other factor to consider when analysing these real estate companies is that their book value may be quite out of date. It is important to check if the company has done a revaluation of assets recently to make sure that the book value reported in the accounts represents current value.
Good point raised by StockWatch.
One needs to be cautious when comparing the book values / net asset value / Price to book value of companies because of inconsistent accounting polices adopted in financial statements in regard to the valuation or rather RE-VALUATION of Assets, mainly real estate. Really, such a comparison may be quite meaningless and even misleading. A new accounting standard which would address this issue, is long-felt need. Of course .. easier said than done, as it is a very complicated and arduous task !!