CSD - Opportunity to collect ?

CSD every day going in down turn ... profit up ... NAV more than 30/= ...fundermentaly is good stock ...

But Why still some one try to match and sell always. even the market in Green ...CSD going in RED...

CSD traded more than 7/= even in the war period ... bad country situation...Critical financial situation ...CSD traded well even everything bad .. but everything is good CSD trading under 7/= ..

When I bought this stock @ 17.60 ASHA recommend this stock ..still they said CSD is good ..good to buy but I couldn't see any positive sign...

Comments please

Jana wrote:CSD every day going in down turn ... profit up ... NAV more than 30/= ...fundermentaly is good stock ...

But Why still some one try to match and sell always. even the market in Green ...CSD going in RED...

CSD traded more than 7/= even in the war period ... bad country situation...Critical financial situation ...CSD traded well even everything bad .. but everything is good CSD trading under 7/= ..

When I bought this stock @ 17.60 ASHA recommend this stock ..still they said CSD is good ..good to buy but I couldn't see any positive sign...

Comments please

This market has discounted so many shares below Nav and earnings. Until the right time and the push comes with big buyjng things will be dull. Can the next fewdays make a difference is to be seen.

CSD has the NAV, so do many other shares. But CSD lacks the earnings at the moment compared to some which have greater earnings as well.

Anyway I'm editing the title since it's giving a wrong impression. I'll make it a question since you're asking for comments.

Further, please do not use colored fonts. Thanks Jana.

npp wrote:
Further, please do not use colored fonts. Thanks Jana.

Sorry for that. I do in future. thanks

and thanks guys for ur comments

NAV is only valid if CSD is decided to go for liquidation.

They just earn money through rental income which is very hard to increase.

I can’t understand why people think too much of NAV of CSD.

seek wrote:NAV is only valid if CSD is decided to go for liquidation.

They just earn money through rental income which is very hard to increase.

I can’t understand why people think too much of NAV of CSD.

I think you already answered your question. People should be more comfortable holding shares that are belwo NAV for that matter than share that trade 10-20 NAV. Now if you take CTC or LLUB is a different ball game.

slstock wrote:

seek wrote:NAV is only valid if CSD is decided to go for liquidation.

They just earn money through rental income which is very hard to increase.

I can’t understand why people think too much of NAV of CSD.

I think you already answered your question. People should be more comfortable holding shares that are belwo NAV for that matter than share that trade 10-20 NAV. Now if you take CTC or LLUB is a different ball game.

It is true slstock, but is CSD an investment trust ?
I think we should look at EPS of CSD. NAV should be considered if there is a risk of being bankrupt.

seek wrote:

slstock wrote:

seek wrote:NAV is only valid if CSD is decided to go for liquidation.

They just earn money through rental income which is very hard to increase.

I can’t understand why people think too much of NAV of CSD.

I think you already answered your question. People should be more comfortable holding shares that are belwo NAV for that matter than share that trade 10-20 NAV. Now if you take CTC or LLUB is a different ball game.

It is true slstock, but is CSD an investment trust ?
I think we should look at EPS of CSD. NAV should be considered if there is a risk of being bankrupt.

I agree for companies like CSD Eps is the primary yard stick. There are quite a few Land & property management companies now trading below NAV. Some have more attractive EPS than CSD also.

In any case if there is a rumor like in the case of CTCE ( I am not creating one for this and their is no such thing I know of ) NAV can also play a role right? Am sure no one will want to hold bad EPS and bad NAV company at such times

Again this isa general comment more than for CSD especifically.

A few things to note:

1) The property sector generally trades at a discount to their NAV. If you look across the board at other companies like OSEA, you will see the share price trading at below the NAV. Investment strategies are based on asset plays. Its like buying land and holding it for the future, except we buy shares of a company that holds land. Upward revaluations will pull eventually pull a stock up. The share price should not effectively trade above net asset value in this sector because asset value is higher than fair value of asset.

2) CSD is mainly the Seylan Bank main office (millennium branch in Galle Road). They've got a restaurant, offices and apartments. As someone here already mentioned, as they are closely connected with the bank, unlikely that they can increase rents as another independent business could so earnings growth is low and downside risk is high meaning occupancy cannot go above 100% but can go down very fast. However as an asset play, the development of the Hyatt hotel and apartments nearby and other constructions like beautifications etc will increase the land value in the area so we cane expect upward revisions of the NAV which may pull the price up.

Again, all these factors are relative to market conditions as we have seen in the last few years. I bought this share and a few others in the sector for these reasons... Now at unrealized losses but still

What rubbish. I dont have any faith!

seek wrote:NAV is only valid if CSD is decided to go for liquidation.

They just earn money through rental income which is very hard to increase.

I can’t understand why people think too much of NAV of CSD.

Hmmm... After rights issue shares hit the market on 27th June 2011, the NAV of the company has fallen to 29.65 and considering the last close, this is trading highly discounted to the NAV value.

May be what u say is highly valid but some investors take decisions on NAV.. While Land Sector has to be go under PE method, NAV gives a heads up on asset wise valuation.. Lands are in appreciating side normally, then again in financials no mark to market adjustment sometimes so true land values are not highlighted..

Its like- what if they sell the land? Ok.. its not gonna happen but What if??

May be that's why Dj has gone into CLND?????? The owner also get the holdings of the buildings know..

smallville wrote:

seek wrote:NAV is only valid if CSD is decided to go for liquidation.

They just earn money through rental income which is very hard to increase.

I can’t understand why people think too much of NAV of CSD.

Hmmm... After rights issue shares hit the market on 27th June 2011, the NAV of the company has fallen to 29.65 and considering the last close, this is trading highly discounted to the NAV value.

May be what u say is highly valid but some investors take decisions on NAV.. While Land Sector has to be go under PE method, NAV gives a heads up on asset wise valuation.. Lands are in appreciating side normally, then again in financials no mark to market adjustment sometimes so true land values are not highlighted..

Its like- what if they sell the land? Ok.. its not gonna happen but What if??

May be that's why Dj has gone into CLND?????? The owner also get the holdings of the buildings know..

I am not saying a CSD is a bad share. I also had this share sometimes back when it was trading around 11 (after the rally) and exit with more than 10% gain after realizing its future potential.

I am thinking whether to enter again or not for trading purposes and still seeing the bold negative side than the positive side. On the other hand, why should I block money on uncertain factors when there are real companies providing better results in earnings?

Positives
1. Highly discounted to its NAV. If you are an assets player then this a stock.
2. DP’s and Dr.T’s presence. There should be some hidden bull factors that I can’t see. Sometimes this can run for no reason when these guys want to exit.

Negatives
1. Possibility of selling or renting this property to another party is less unless Seylan bank is in severe need of moving its office to another location.
2. Difficulty of increasing its earnings through rental.

Small, I think we cannot compare CLND and CSD although they are in the same sector. Assets of CLND are free for business. They are cash generatable assets while assets of CSD are block for business.

Anyway, it is better to invest in ‘Hambanthota Lands’ instead of ‘Colombo Lands’. Hambanthota will be the main developing city for next 20-30 years. Whoever in power for next 2-3 decades, either Rajapaksha(MR, GR, BR, or NR) or Premadasa, Hamba is the city gets the first priority.

What are the companies in CSE having lands in Hambanthota?