PALM-just take a look

Dr.Bubble · 1 PALM-just take a look Fri Sep 30, 2011 6:49 pm

Dr.Bubble

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http://forum.srilankaequity.com/t2051-confifi-palm-vs-riverina-bhr-vs-eden?highlight=palm

http://forum.srilankaequity.com/t4498-how-much-confifi-hotel-holdings-plc-palm-is-worth?highlight=palm

what you guys thinking
today price-232.70

reminder-our famous excellent predictor think9 recommend to buy at 331 Wink

http://forum.srilankaequity.com/t4823-who-got-palm-on-to-thier-palms?highlight=palm

dhanurrox · 2 Re: PALM-just take a look Fri Sep 30, 2011 7:28 pm

dhanurrox

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Hotels will run soon,palm will lead the rally. Very Happy

smallville · 3 Re: PALM-just take a look Fri Sep 30, 2011 7:56 pm

smallville

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Think9 said this should be added to the watchlist in June.. C'mon it September now Wink

PALM has been shut down for renovations I think but in CSE even a backrupt company can run just for the sake of top ppl to get out with some profit..

What so ever, there may be trading oppertunities Twisted Evil

windi5 · 4 Re: PALM-just take a look Fri Sep 30, 2011 11:22 pm

windi5

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got only 7.2m shares.

Quibit · 5 Re: PALM-just take a look Sat Oct 01, 2011 1:58 am

Quibit

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Yes, I am watching very closely.. I see. Lot of potential. LOLC bought it 2 years ago at Rs 210/= it was a bargain then... Dont you think it's worth more than 300/=, 2 years later.

smallville · 6 Re: PALM-just take a look Sat Oct 01, 2011 7:43 am

smallville

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Quibit wrote:Yes, I am watching very closely.. I see. Lot of potential. LOLC bought it 2 years ago at Rs 210/= it was a bargain then... Dont you think it's worth more than 300/=, 2 years later.

It may have value, but once the operations start this may come into shine.. now there's nothing much than a land and buldings cuz there's no revenue growth..
May be LOL has found long-term value with this and after the refurbishments this can be a good one..

But look at RENU, even at the closing time of hotel operations, they had an investment portfolio which looked after the expenses Wink

that's 2 in 1.

LankanBusiness · 7 Re: PALM-just take a look Sat Oct 01, 2011 11:40 am

LankanBusiness

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PALM in the PAST was a good investment - but now I am not bullish about most hotel stocks.

Why I will NOT invest in PALM:

1. There is rumor that PALM and BHR (Riverina Hotel) buildings will be flattened and a new hotel built in place of the two - these hotels are adjoining each other in beruwala. Tropical Villas was also bought over by LOLC and this too is next to PALM - high construction costs are a big concern to me

2. How will the expansion/renovation be financed? Higher gearing means higher risk/ lower profits

3. They may have to bring in a hotel management company such as Hilton to manage the hotels - since they do not have in-house competencies in hotel management - the hotel management company will charge substantial management fee which will cut into profits.

4. Capital intensive investments - such as hotels typically take a long time to payback investors - so don't expect quick profits.

5. High profitability of some hotels are determined by there ability to cross sell products to guests - for example Spa or ayurvedic treatment are very profitable cross sells - will LOLC have substantial cross selling ability in the future?

6. Related party transactions - all depends on who manages the hotel - it might be an issue

7. Marketing and negotiating room sales is a key factor in which LOLC has less experience - this again emphasizes the need for a management company.

On the bright side this property is situated on prime land - on the golden mile - this alone commands a premium for this share.

Above is only my opinion and should not influence anyone's buy/sell decision.