WASKADUWA BEACH RESORT PLC (CITW.N0000)

kalum wrote:

ccsentha wrote:in CSE only, stocks are bought and sold of a hotel, even before the hotel is in operation. Currently CITW doesn't do any other business.

true but i dont think it's a problem. As far as i see, it's better to be first than last if there is a opportunity. but if you are unlucky become first will be unprofitable. "issella uyapu batha mulin ma pilinu una wage'.. but that is the risk we are taking no?

building a hotel is one thing, efficiently managing it to generate profits is another. Ideally Profits should be increasing with time, even if the micro economics are not in favor of the business, still making profits is talent(by reducing cost, etc...) this is what we find with good companies. Identifying such companies is very difficult. Identifying it before it has even started it's business is close to impossible.

Chinwi wrote:

ccsentha wrote:in CSE only, stocks are bought and sold of a hotel, even before the hotel is in operation. Currently CITW doesn't do any other business.

Do not worry.
You can buy running hotels like AHUN, RENU, HUNA, TAJ if you do not like bear lands.

They were trading at introductory prices decades ago , we were not in a position to buy shares those days. Now we do not have enough money to buy them at current rates.

Hence , we buy bear lands at 50% discount.

CITW owners paid 10/- per share 2 1/2 years ago and public paid 12/- one and half year ago. Now the hotel is in construction level we buy at 50% discount.
No offense. Just a different view.

if the company makes a loss in 1 year will is still be 50% discount?
once the hotel is in operation and if it doesn't make profits, the price of stock would come down even further...??

smallville wrote:In CSE bear lands trade without hotels but at least with CITW, we see a hotel being built now..
When the hotel started its operations, hype will take it to the levels that we cant buy it shares.. So better late than worry know?

generally hotels don't make profits in their early days, do they? it takes some time/years for their occupancy rate to go up, isn't it? during this period share price can come further down ne?

ccsentha wrote:
generally hotels don't make profits in their early days, do they? it takes some time/years for their occupancy rate to go up, isn't it? during this period share price can come further down ne?

You are very correct. You cannot expect good profits in first few years.
That risk is there for the people who buy at IPO or even now. See their cashflow plan, they have shown it in writing. Actually the biggest risk is for the promoters.* ( *- see note)

But, we are not relying on EPS only - for this kind of medium and long term investments.
When a marshy land is converted into a star class functioning hotel there can be many interested parties , funds, big tour operators etc. coming in and they look in long term prospective. Even many times of Current Price could become attractive for them , compared to other similar hotels in the region. ( Ceylon - Goa - Thai - Bali ... )

I am talking about long term. There can be short term opportunities as well.
Somehow, those who invest in this kind of stocks should know they are targeting long range.

-----

* Note:

In many cases we see the promoters issue bonus shares, revalue badly, do many 'jil-mart' to increase their holding free of cost and lower their cost per share to few Rupees before issuing shares to public at higher prices.

( Eg.DIAL . Malaysian Owners issued millions of bonus shares to themselves and then they sold those zero cost shares to us @ 12/- in the IPO . - a daylight robbery. How foolish we were , the issue was oversubscribed within hours. I did not buy a single DIAL IPO share in protest. )

w.r.t. CITW they did not do such a thing. Promoters paid 10/- and year later they issued IPO @ 12/- . Very reasonable.

Chinwi wrote:

ccsentha wrote:
generally hotels don't make profits in their early days, do they? it takes some time/years for their occupancy rate to go up, isn't it? during this period share price can come further down ne?

You are very correct. You cannot expect good profits in first few years.
That risk is there for the people who buy at IPO or even now. See their cashflow plan, they have shown it in writing. Actually the biggest risk is for the promoters.* ( *- see note)

But, we are not relying on EPS only - for this kind of medium and long term investments.
When a marshy land is converted into a star class functioning hotel there can be many interested parties , funds, big tour operators etc. coming in and they look in long term prospective. Even many times of Current Price could become attractive for them , compared to other similar hotels in the region. ( Ceylon - Goa - Thai - Bali ... )

I am talking about long term. There can be short term opportunities as well.
Somehow, those who invest in this kind of stocks should know they are targeting long range.

-----

* Note:

In many cases we see the promoters issue bonus shares, revalue badly, do many 'jil-mart' to increase their holding free of cost and lower their cost per share to few Rupees before issuing shares to public at higher prices.

( Eg.DIAL . Malaysian Owners issued millions of bonus shares to themselves and then they sold those zero cost shares to us @ 12/- in the IPO . - a daylight robbery. How foolish we were , the issue was oversubscribed within hours. I did not buy a single DIAL IPO share in protest. )

w.r.t. CITW they did not do such a thing. Promoters paid 10/- and year later they issued IPO @ 12/- . Very reasonable.

mmm....

A good share to have in your portfolio. Current trading price is Rs:7.10

* Top 20 share holders hold 95.46%
* NAV more than 10
* The hotel is now operational and as the tourism season is around the corner a definite buy.
* IPO was priced at 12.50
* The last couple of days the share was trading with high volumes

Happy Trading

Thanks for highlighting this share

ur welcome...Do keep an eye on ASIR.N0000 as well...

Happy Trading

Invest_Wisely wrote:A good share to have in your portfolio. Current trading price is Rs:7.10

* Top 20 share holders hold 95.46%
* NAV more than 10
* The hotel is now operational and as the tourism season is around the corner a definite buy.
* IPO was priced at 12.50
* The last couple of days the share was trading with high volumes

Happy Trading

Accept all the points but i prefer to invest for 2 years rather trading.

Investing or trading ?
My personnel view is current market conditions are better for trading day or swing.
At present most of stocks have reached 52wk high.
Better to wait until a dip comes for collection and longterm investments.

If the hotel is fucntioning why they havent mention in revenue
in the Q report.
It has mention NAV is 10.27
why no revenue?

September Quarter they should show results....

Happy Trading

Invest_Wisely wrote:A good share to have in your portfolio. Current trading price is Rs:7.10

* Top 20 share holders hold 95.46%
* NAV more than 10
* The hotel is now operational and as the tourism season is around the corner a definite buy.
* IPO was priced at 12.50
* The last couple of days the share was trading with high volumes

Happy Trading

This will be a good pick for long term. Nice hotel. Worth to buy at these levels

Agreed 100%....Collection going on, this share will definitely give you a very good ROI....

Today 8.50. Will definitely break 10......

this will trigger a move on in Reef also. (Reef holds 59.31%) from this quarter on wards we might see operational profits... good times ahead for Reef family.

wonder any one knows about CITK progress...

Yes even I'm waiting for CITk to join the run !

CITW definitely a very good buy. The hotel just started functioning in June. I have visited the hotel also a few times. Its the largest one in that area and definitely will do full well in the season starting November. So I think 6-9 months the return will be great. This has not appreciated much either.

CITK will be the next one. IPO was at 17.50. NAV again at 10/- Colombo land holds a big chunk of CITW so generally the patter is that it moves with CLND in the past and also with the REEF group. The herd mentality movement!!

Both undervalued shares.

Happy trading....

But its financials look strange. Someone had alsready pointed out that in the forum.

They do not have a income of cent from operational activities and other income is consisted only with dividends.

It's gearing ratio is 0.8 which means its total external liabilities exceeds the sum of equity. But not bad.

Cannot expect a dividend for more than 5 years.

I think even if some one enters CITW at 8.5 it is ok (if you invest). There are gud reasons to do that. My target price for CITW in next May is above 12.50. There is no any gud reason to invest in CITK but if it is only for trading that depends on the the bull run of REEF.

Please note that i have invested in CITW in April at 6.5-6.8 range.

I also having CITK little past stock avarage 7r.s

@ Invest_Wisely...Great insight and prediction....

Be careful anyway. Dannawane ithin

My target reached closed at Rs.9.10 ..

Next>>> CITK

REEF.N last 15 mins Rs 20 resistance vanished..

Hopefully we can see old REEF heroics that we used to from tomorrow onwards..

Monash I sincerely hope so.....i am long waiting for this....

I think CITW will run to 10 and settle for a bit. My worry is CITK!!!

Investwise don't worry CITK too would go with the wind my target is 8

CITK can't start any hotel projects.They can give thousand reasons, but there is only one reason. They don't have any cash to build a hotel. Most of the money is stucked in CLND.
They have 2.1bn assets. 400Mn land.
They have bought shares more than 1.2bn. DJ first bough CLND at 20. Then after 2 weeks he sold his stake @43 to the CITK. So investment in the CLND has huge loss.
Also CITK has loss 330,239,887 before start doing anything.
Normally we can expect a interest income when we have lot of money. But they have spend 330Mn for nothing I guess.
The last option to raise the price is give some right issue with warrants. At least some share holders can exit with little sorrow.

Invest-Wise wrote:Monash I sincerely hope so.....i am long waiting for this....

I think CITW will run to 10 and settle for a bit. My worry is CITK!!!

Don't worry about CITK .. I feel its trading at bottom by looking at the quantities traded between 5.80-6.10 past two weeks, hard to beleive it will go down again. CITK will be adjusted and will get close to CITW.

If we compare IPO price CITK is Rs.17.50 which is 4 rupees higher than CITW.

But CITW's NAVPS is 10.25 CiTK's NAVPS is close to Rs.9 . I think both CITK and CITW will be adjusted close to their NAVPS.

If REEF start to run tommorow these two will fly with momentum..

According to last quarter accounts  WASKADUWA is still a "HUCHAKKUWA"

I do not know what will happen next quarter