NAV = 30
CLND price = 62
Unrealized gain from CLND = 40*30 Mn =1.2Bn
gain to the REEF = 1.2Bn*.72 = 864Mn
gain to a reef share = 864/47 = 18
Dilith will sell CLND shares within this year. In a separate interview he has told he is going to start construction work during this year. He will pull back his money during this year.
Gains from other investments (Waskaduwa ) - LHCL and VONE - don't know whether Dilith sold stakes owned by Waskaduwa
After listing in CSE NAV will be jumped above 60 .Hope listing will do during 2011
Now you can see REEF share is really worth to buy bellow 65. This could be a very good medium term investment.
If you bought REEF w17 you only has to pay 61 rupees for a share at Oct 1st
If you bought REEF w18 you only has to pay 53 rupees for a share at 2012/6/1. But the share value will depreciate to some value due to new shares added by first warrant conversion.
Most important thing is Top shareholders hold more percentage of warrant 17 than the normal share. Dropping price after the conversion is very much improbable.
Hope w17 is a very solid investment ATM for a short term period
How to valuate REEF using future projects ?
* 45 new rooms to the Hikkaduwa hotel - Funds already allocated
* Waskaduwa hotel with 150 rooms -Funds already allocated
* Kalpitiya hotel with 150 rooms