Galadari-what is the real value?

klpfernando · 1 Galadari-what is the real value? Sat Dec 01, 2012 4:36 pm

klpfernando

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1 Iceberg 2 paid Rs 40
2 EPF paid Rs 34
3 conversion of loan to shares at Rs 22.50(7.1 billion loan)
4 national insurance trust fund has not accepted the proposal at 22.50-why the share price too high
5 last quarter earning Rs 1.86(most of them come from exchange gains)
6 amount of shares after the conversion-500 million
7 current net asset Rs 3-which could jump to 10 after the conversion
8.after the conversion they can save around 25 million on finance cost per quarter
9.current market price Rs 12.50 ???
how much do you pay for this share ?

takefawaz · 2 Re: Galadari-what is the real value? Sun Dec 02, 2012 12:01 am

takefawaz

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Iceberg 2/EPF purchase price and current price is due to timing difference. So lets not worry about how much they paid. My concern is why Galadari bros settled down to 22.50.
The deal was delayed mainly due to the disagreement by the Galadari bros. Coz this was due last year.
There won't be a big increase in NAV as number of shares also increased.
If the Gal. Bros wanted to exit from the hotel they wouldn't accept the converted price. So they will stay and its their hotel.

So my conclusion is that this will not have significant effect on the share price. The current decrease is due to general mkt conditions.
This is my opinion.

Last edited by takefawaz on Sun Dec 02, 2012 12:15 am; edited 1 time in total

Slstock · 3 Re: Galadari-what is the real value? Sun Dec 02, 2012 12:12 am

Slstock

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good points by Takefawaz . As he said, it will take awhile for Galadari to improve its NAV. right now it is poor ( better than - I guess). Last quarter profit are mainly due to exchange rate gains. In a all hotel run this can appreciate but I find more attractive shares now.

smallville · 4 Re: Galadari-what is the real value? Sun Dec 02, 2012 7:22 am

smallville

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Galadari still giving their investor lunch every year.. How many ppl have bought shares just to have lunch?
Even with 10 shares they send a book with coupons.. I'm sure they'd do it for 1 share even.. So imagine the cost of printing front and back color book with abt 45 pages?

Hotel is not profitable but still they continue to do thi..

These are the stupid things they have to stop.. Lunch is really irrelevant at this stage..
In spite of printing the books, they could use a CD and as the same way other companies do..

Fresher · 5 Re: Galadari-what is the real value? Sun Dec 02, 2012 9:32 am

Fresher

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smallville wrote:Galadari still giving their investor lunch every year.. How many ppl have bought shares just to have lunch?
Even with 10 shares they send a book with coupons.. I'm sure they'd do it for 1 share even.. So imagine the cost of printing front and back color book with abt 45 pages?

Hotel is not profitable but still they continue to do thi..

These are the stupid things they have to stop.. Lunch is really irrelevant at this stage..
In spite of printing the books, they could use a CD and as the same way other companies do..

2 years ago I too bought 100 just for the lunch. After the first time, seeing the type of people come for lunch, it was discouraging me to go for it after that.
At that time I thought it is also an indication of the over-statement of no. of CDS accounts/stock traders/investors cos I'm sure there are 100s of people who have opened an account just to have a few GHLL and TAJ in their 'portfolio'