RENU - Extention to the existing building

Monster · 1 RENU - Extention to the existing building Wed Mar 14, 2012 3:02 pm

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RENU -one of the undervalued hotel share in the current market is to construct another 18 guest rooms and a swimming pool to the existing building.
RENU - Extention to the existing building Renu10

RENU - Extention to the existing building Renu10

Kumar · 2 Re: RENU - Extention to the existing building Wed Mar 14, 2012 6:16 pm

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Thanks Monster for the updates.It is one of the regular dividend paying and good asset based company.

illuminati · 3 Re: RENU - Extention to the existing building Wed Mar 14, 2012 8:35 pm

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Dont forget how Renu transfered millions to related parties in Austrailia . Crooks.

saint · 4 Re: RENU - Extention to the existing building Wed Mar 14, 2012 8:42 pm

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Illuminati,

Can u pls tell us the story?

Antonym · 5 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:09 pm

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saint wrote:Illuminati,

Can u pls tell us the story?

Here's what I wrote in January 2012:

I am disappointed with the manner in which RENU has been utilizing their substantial cash reserves. It appears that they have been siphoning off surplus funds to a related company in Australia - instead of distributing it to shareholders or investing in another hotel.

Company has granted a loan amounting Rs. 325,551,194 (that's Rs 46.5 per RENU share) during last year to REN Pty Limited which is incorporated in Australia. Interest rate on this loan is 5% to 7% per annum. This loan is totally repayable by 30th March 2019. A first ranking fixed and floating debenture charge over all of the undertakings of the borrower is the security to this loan.

If not for this suspicious transaction and lack of clarity on what their plans are, RENU offers good value for money.

Fresher · 6 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:16 pm

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is the interest payable in AUS$ ?
btw, what would be the exchange rate in 2019? Wink

Monster · 7 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:20 pm

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illuminati wrote:Dont forget how Renu transfered millions to related parties in Austrailia . Crooks.

Yes, illuminati. It was bit disappointing. But still it's worth considering the regular income and company asset. I consider RENU as an investment company, which owns a hotel.

stumpy · 8 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:23 pm

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npp wrote:is the interest payable in AUS$ ?
btw, what would be the exchange rate in 2019?

1 USD = 60-80 LKR ?
Am I too optimistic?

Antonym · 9 Re: RENU - Extention to the existing building Thu Mar 15, 2012 12:04 am

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npp wrote:is the interest payable in AUS$ ?
btw, what would be the exchange rate in 2019?

@npp: Good point, actually!
I hope the loan is denominated in AUS$. If so, the original principal of LKR 326 million would already be worth about LKR 390 million (depreciation of approx 20%)... I also hope this transaction is legit and that REN Pty Limited repays the loan with interest.

smallville · 10 Re: RENU - Extention to the existing building Thu Mar 15, 2012 5:58 am

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Monster wrote:

illuminati wrote:Dont forget how Renu transfered millions to related parties in Austrailia . Crooks.

Yes, illuminati. It was bit disappointing. But still it's worth considering the regular income and company asset. I consider RENU as an investment company, which owns a hotel.

Me too.. It has a value for its NAV and they do their expansions, renovations without the help of shareholders money.. I mean considering the rights factories like Lankem group RENU is using their investments to prosper so the loan could be peanuts in this case thought its a bit disappointing.. On the other hand this has been the case for copmanies fund by foreign investment, have'nt they? Eitehr they diclare higher dividends or some other thing to get money..

Slstock · 11 Re: RENU - Extention to the existing building Thu Mar 15, 2012 6:33 am

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smallville wrote:

Monster wrote:

illuminati wrote:Dont forget how Renu transfered millions to related parties in Austrailia . Crooks.

Yes, illuminati. It was bit disappointing. But still it's worth considering the regular income and company asset. I consider RENU as an investment company, which owns a hotel.

Me too.. It has a value for its NAV and they do their expansions, renovations without the help of shareholders money.. I mean considering the rights factories like Lankem group RENU is using their investments to prosper so the loan could be peanuts in this case thought its a bit disappointing.. On the other hand this has been the case for copmanies fund by foreign investment, have'nt they? Eitehr they diclare higher dividends or some other thing to get money..

Nothing in life is certain except this fact. A company which did not have a vision and become one if the management foresight changes. As Npp pointed out the aus$ issue , was the RENu management thinking about long term currency gains when they made that loan. Ofcourse they could have invested wiser but suddently we see another side.

Aus$ now is higher than Us$ . What will be the future.

illuminati · 12 Re: RENU - Extention to the existing building Thu Mar 15, 2012 7:56 am

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Who said the interest is payable in AUS currency. Is it wishful thinking ?

smallville · 13 Re: RENU - Extention to the existing building Thu Mar 15, 2012 8:27 am

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illuminati wrote:Who said the interest is payable in AUS currency. Is it wishful thinking ?

Even if they pay in SLR, the price per $ is high now..

Slstock · 14 Re: RENU - Extention to the existing building Thu Mar 15, 2012 12:50 pm

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illuminati wrote:Who said the interest is payable in AUS currency. Is it wishful thinking ?

Illuminati,

I see you sometimes you make valid points. But what I saw so far is that you make negative posts about any company. I would really like to know your potential investment companies you have an eye on . If it goes through your filtering process maybe there is something in those companies. We would be happy if you enlighten us.

TortoizePlus · 15 Re: RENU - Extention to the existing building Thu Mar 15, 2012 6:04 pm

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slstock wrote:

illuminati wrote:Who said the interest is payable in AUS currency. Is it wishful thinking ?

Illuminati,

I see you sometimes you make valid points. But what I saw so far is that you make negative posts about any company. I would really like to know your potential investment companies you have an eye on . If it goes through your filtering process maybe there is something in those companies. We would be happy if you enlighten us.

I was about to ask same question from both aj and Illuminati. They seems to be more experianced people than me but I would like to see a balance view.

Both Illuminati and aj,
What is the company having lowest negative views in CSE for investing...
Hope you people will answer.. This is a kind request from an inexperianced person.

Monster · 16 Re: RENU - Extention to the existing building Thu Mar 15, 2012 7:33 pm

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Find the below list of investments in quoted companies by RENU as of 31-03-2011. As of below list, only investments in quoted companies worth Rs 194.06 per RENU share. I have not included other assets belongs to the company. Almost each and every RENU share has a DFCC share.

Currently RENU is trading between Rs 210 and Rs 225. That's why I feel it's worth at this price. Need opinion from others!
RENU - Extention to the existing building Renu10

Please not that, share price is as of today's market price.

sriranga · 17 Re: RENU - Extention to the existing building Thu Mar 15, 2012 7:47 pm

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Monster wrote:Find the below list of investments in quoted companies by RENU as of 31-03-2011. As of below list, only investments in quoted companies worth Rs 194.06 per RENU share. I have not included other assets belongs to the company. Almost each and every RENU share has a DFCC share.

Currently RENU is trading between Rs 210 and Rs 225. That's why I feel it's worth at this price. Need opinion from others!

Please not that, share price is as of today's market price.

Thanks monster.

Rajaraam · 18 Re: RENU - Extention to the existing building Thu Mar 15, 2012 8:10 pm

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illuminati wrote:Who said the interest is payable in AUS currency. Is it wishful thinking ?

Dear illuminati,
How can an australian company borrow in Srilankan rupee? Can we guess Australian authorites approve such a transaction to borrow in a weak currency like Ruppe. They would accept only internationaly reputed currencies such as US $, J YEN ,EURO etc.

Antonym · 19 Re: RENU - Extention to the existing building Thu Mar 15, 2012 8:28 pm

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Monster wrote:...Currently RENU is trading between Rs 210 and Rs 225. That's why I feel it's worth at this price. Need opinion from others!

Older members of this forum know that RENU is my favourite value investment. It may not be the best-run hotel, but it is quite profitable.
For reasons mentioned by Monster, I believe that RENU is one of the most undervalued shares on CSE. I hope Mr Buffett's words come true: "If a business does well, the share price eventually follows."

WildBear · 20 Re: RENU - Extention to the existing building Thu Mar 15, 2012 9:15 pm

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Monster wrote:Find the below list of investments in quoted companies by RENU as of 31-03-2011. As of below list, only investments in quoted companies worth Rs 194.06 per RENU share. I have not included other assets belongs to the company. Almost each and every RENU share has a DFCC share.

Currently RENU is trading between Rs 210 and Rs 225. That's why I feel it's worth at this price. Need opinion from others!

Please not that, share price is as of today's market price.

They have 7 million DFCC shares in their portfolio. It's obvious that they have got DFCC's dividend of 10 /= per share in 2011, that means Rs. 70 million. For that only they get Rs. 10 per RENU share from DFCC dividends. Truly an asset rich company, with good business model.

Rajaraam · 21 Re: RENU - Extention to the existing building Thu Mar 15, 2012 10:51 pm

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We should not forgot that even in the trouble times this hotel was running at a profit. May be only hotel succesfully operated at that time. It has a bright future with ever increasing south asian tourists.

fatcat · 22 Re: RENU - Extention to the existing building Fri Mar 16, 2012 12:04 am

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Renu largest share holderst list 89%
Holding 2yr or more B/L 11% retailers
Out of that 5-6% long term
So somebody want to buy 50-100 K
Shares they have to push the price
RS300/- ++++++

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RENU - Extention to the existing building

1 RENU - Extention to the existing building Wed Mar 14, 2012 3:02 pm

Monster

2 Re: RENU - Extention to the existing building Wed Mar 14, 2012 6:16 pm

Kumar

3 Re: RENU - Extention to the existing building Wed Mar 14, 2012 8:35 pm

illuminati

4 Re: RENU - Extention to the existing building Wed Mar 14, 2012 8:42 pm

saint

5 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:09 pm

Antonym

6 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:16 pm

Fresher

7 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:20 pm

Monster

8 Re: RENU - Extention to the existing building Wed Mar 14, 2012 10:23 pm

stumpy

9 Re: RENU - Extention to the existing building Thu Mar 15, 2012 12:04 am

Antonym

10 Re: RENU - Extention to the existing building Thu Mar 15, 2012 5:58 am

smallville

11 Re: RENU - Extention to the existing building Thu Mar 15, 2012 6:33 am

Slstock

12 Re: RENU - Extention to the existing building Thu Mar 15, 2012 7:56 am

illuminati

13 Re: RENU - Extention to the existing building Thu Mar 15, 2012 8:27 am

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14 Re: RENU - Extention to the existing building Thu Mar 15, 2012 12:50 pm

Slstock

15 Re: RENU - Extention to the existing building Thu Mar 15, 2012 6:04 pm

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16 Re: RENU - Extention to the existing building Thu Mar 15, 2012 7:33 pm

Monster

17 Re: RENU - Extention to the existing building Thu Mar 15, 2012 7:47 pm

sriranga

18 Re: RENU - Extention to the existing building Thu Mar 15, 2012 8:10 pm

Rajaraam

19 Re: RENU - Extention to the existing building Thu Mar 15, 2012 8:28 pm

Antonym

20 Re: RENU - Extention to the existing building Thu Mar 15, 2012 9:15 pm

WildBear

21 Re: RENU - Extention to the existing building Thu Mar 15, 2012 10:51 pm

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22 Re: RENU - Extention to the existing building Fri Mar 16, 2012 12:04 am

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23 Re: RENU - Extention to the existing building

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