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Sri Lanka Equity Forum » Stock Market Talk » OVERSEAS REALTY (CEYLON) PLC (OSEA.N000)

OVERSEAS REALTY (CEYLON) PLC (OSEA.N000)

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1OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 7:47 pm

lion


Senior Equity Analytic
Senior Equity Analytic
Hi Friends,

To consistently beat the market without taking risks we must always invest “Value stocks”. This is the strategy employed by the world’s greatest investor Warren Buffet.  By this process we would be able to identify stocks which will outperform the market.  I consider OSEA as value stock by using the general steps used to identify a value stock. I have summarized my analysis on OSEA below:

1.It should be a great business:  A great business is one in which we could confidently forecast the profits of the company. OSEA, continuous profitability from 2005 to 2010, both in terms of revenue and fair value gain. World Trade Centre is the premier business location in Sri Lanka, as at to date WTC unmatched by the standards by any business locations in the country.  Further the Company has launched the 2nd phase of Havelock City Project. With 75% of the apartments of the phase already sold out.  The high built quality of the apartments which boast the largest green space and car parking ratio of any development in Colombo are characteristics that will continue to attract many discerning buyers to HC. Undoubtedly the business is a Great business.

2.Undervalued –Trading at a Discount to book value. This is the most important fact for me.  Price to Book value =15/26.67=57% I.e. the stock is infect trading at a huge discount to the book value (44% discount to the book value) PE ratio= 15/1.23=12, fairly priced, but compared to the stocks in the land & Property sector , still underpriced.  

3.Durable Competitive Advantage: When we look in to the business model of OSEA, it is very unlikely that another entity to build futuristic cities such as HC or places like WTC, due to Capital requirements, location, business ethics,  etc.

4.Future Growth Drivers:  Havelock City Phase II, ambitious plan to complete in three years.   Once completed It will consist of approximately 1,080 residential apartments, a commercial complex, recreational and entertainment facilities, in line with its ‘City within a City’ concept.  Structured Growth Plan leading to higher ROE to stakeholders. rise in income level, co

5.Conservative Debt: Low level of debt. Total Borrowings to Current Assets- 2,876/6275=45%, which means that 45% of current assets is sufficient to pay off the borrowings of the firm.

6.Management is buying/ holding stock- The major shareholders Shing Kwan Investments Co. Ltd has subscribed fully for the recent rights issue and also subscribed for un paid rights, Which is a strong indication for the confidence in the company by the stakeholders.

I am in the process of collecting OSEA, and wanted to share my analysis for further expert comments and suggestions.

Regrds,

http://www.thebottomline.lk/2011/04/24/page3.
WTC occupancy rate may reach 85% by year end

Sri Lanka’s premier property development and investment holding company, Overseas Realty Ceylon Plc (ORC) says that occupancy levels at the World Trade Centre (WTC) in Colombo is expected to reach 80 - 85% at the end of 2011 from about 72% level maintained at the end of year 2010. According to the firm’s Annual Report for the year 2010, the company during the year 2010 had benefited from increases in both occupancy at WTC and average rental rates, a clear indication of an uptrend in business optimism and confidence.
“Given the stable political environment and its premier position as the most sought after office space in Colombo, the company expects occupancy levels at the WTC to reach 80 - 85% at the end of 2011,” the Management Commentary passage in the Annual Report outlined.
It stated that although occupancies averaged above 80% through 2006-2008, despite the unstable environment in the country, occupancy in 2009 declined to 68%, a significant drop from the average occupancies witnessed in the prior years. This had been due to the adverse security environment prevalent in the country and the global financial crisis, which saw several companies engaged in exports, airline services, telecommunications and IT either downsizing or shifting from the WTC to mitigate the impact of the crisis.
“However, the end of hostilities in May 2009 has brought about an unprecedented optimism in the country. This, in turn, has resulted in an increased demand for quality office space, leading to a rise in occupancy levels to 70% in 2010 with committed occupancy of 72% at year end,” the report noted.
It stated that the year 2010 saw the addition of a high standard gym for use of the company’s tenants while work has now begun on a food court with expected completion in the second quarter of 2011.
Meanwhile, the report revealed that during the year 2010 the firm was able to obtain higher rental rates from new tenants and were able to increase rentals in a year which saw the average rental index rising to 159 from the average rental index of 150 in 2009.

Regards



Last edited by Quibit on Mon Nov 04, 2019 7:39 am; edited 2 times in total (Reason for editing : thought the news update on bottomline would be beneficial to the members)

2OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 9:19 pm

lion


Senior Equity Analytic
Senior Equity Analytic
Slstock, Whats your view on OSEA?

3OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 9:20 pm

Fresher


Moderator
Moderator
Appreciate the good post.
I have the following questions and would like to be cleared since I have not been following this share

As far as I know the company struggled to meet sales for the Phase I of the HC project and it is still not completed. Now it is venturing into another large scale similar project and thus I have a few doubts on the timely meeting of the targeted deadlines.

4OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 9:41 pm

lion


Senior Equity Analytic
Senior Equity Analytic
Couple of things, the company began the Phase one at a time the economy was in deep recession and it was a ambitious project by the company. As at last December 2010 75% of the 226 apartments was sold out and the remainder already being pre sold. The economy is booming, rising level of income, etc.
Presently there is no city like apartments in Sri Lanka (City in City Concept) The Company has the first mover advantage. An interview, the chairman stated, Havelock City, once completed will be more successful than the landmark Beijing Towers, further it will form the backbone of the asset base of the company.

5OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 9:48 pm

Fresher


Moderator
Moderator
I must agree about the economic conditions at that time. But 226 apartments vs. 1080 now.
Where will all these people be moving into? Surely it will take a lot of time to happen
This is a great concept and a good project IMHO.

Another concern I had is the large sums of money in FDs. Is it really good for a company to have excess cash and that in FDs? It could be for a short term till the repayment of a loan but then there should be better options. I may be wrong

Btw, these type of discussions about a company are really important. Merely looking at P/E ratios and NAVPS to evaluate a share is not enough. Smile

6OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 9:59 pm

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@lion wrote:Hi Friends,

To consistently beat the market without taking risks we must always invest “Value stocks”. This is the strategy employed by the world’s greatest investor Warren Buffet. By this process we would be able to identify stocks which will outperform the market. I consider OSEA as value stock by using the general steps used to identify a value stock. I have summarized my analysis on OSEA below:

1.It should be a great business: A great business is one in which we could confidently forecast the profits of the company. OSEA, continuous profitability from 2005 to 2010, both in terms of revenue and fair value gain. World Trade Centre is the premier business location in Sri Lanka, as at to date WTC unmatched by the standards by any business locations in the country. Further the Company has launched the 2nd phase of Havelock City Project. With 75% of the apartments of the phase already sold out. The high built quality of the apartments which boast the largest green space and car parking ratio of any development in Colombo are characteristics that will continue to attract many discerning buyers to HC. Undoubtedly the business is a Great business.

2.Undervalued –Trading at a Discount to book value. This is the most important fact for me. Price to Book value =15/26.67=57% I.e. the stock is infect trading at a huge discount to the book value (44% discount to the book value) PE ratio= 15/1.23=12, fairly priced, but compared to the stocks in the land & Property sector , still underpriced.

3.Durable Competitive Advantage: When we look in to the business model of OSEA, it is very unlikely that another entity to build futuristic cities such as HC or places like WTC, due to Capital requirements, location, business ethics, etc.

4.Future Growth Drivers: Havelock City Phase II, ambitious plan to complete in three years. Once completed It will consist of approximately 1,080 residential apartments, a commercial complex, recreational and entertainment facilities, in line with its ‘City within a City’ concept. Structured Growth Plan leading to higher ROE to stakeholders. rise in income level, co

5.Conservative Debt: Low level of debt. Total Borrowings to Current Assets- 2,876/6275=45%, which means that 45% of current assets is sufficient to pay off the borrowings of the firm.

6.Management is buying/ holding stock- The major shareholders Shing Kwan Investments Co. Ltd has subscribed fully for the recent rights issue and also subscribed for un paid rights, Which is a strong indication for the confidence in the company by the stakeholders.

I am in the process of collecting OSEA, and wanted to share my analysis for further expert comments and suggestions.

Regrds,

Good descriptive post lion.. I am also in the process of collecting this shares little bit, thinking to hold for long-term. Look at the sectors book value and PBV, some are trading at below the book value... However out of that OCEA is very much attractive in terms its business model... I haven't done much analysis of other counters, whose market value less than mkt price... If any body analyzes pls share with me..

COMPANY------------------------------------ MARKET PRICE----BOOK VALUE---- PBV
C T LAND DEVELOPMENT PLC------------------------34.00---43.54---0.78
YORK ARCADE HOLDINGS PLC----------------------- 38.20---8.05--- 4.75
COLOMBO LAND & DEVELOPMENT COMPANY PLC ------22.50---14.02-- 1.60
PROPERTY DEVELOPMENT PLC -----------------------46.00---28.26-- 2.94
EQUITY TWO PLC -----------------------------------33.50---16.24---2.06
OVERSEAS REALTY (CEYLON) PLC--------------------14.90---21.47--- 0.69
EAST WEST PROPERTIES PLC------------------------10.60 ---12.6---- 0.84
CEYLINCO SEYLAN DEVELOPMENTS PLC-------------- 14.80----47.57---0.31

CITY HOUSING AND REAL ESTATE COMPANY--------- 20.00----9.36----2.14
CARGO BOAT DEVELOPMENT COMPANY PLC---------- 140.00---64.19---2.18

@lion

Further can u explain the current trend of the real estate mkt... appreciate if u share some articles related to this.....

Happy Trading






Last edited by seyon on Wed Apr 20, 2011 10:46 pm; edited 1 time in total

7OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 10:12 pm

lion


Senior Equity Analytic
Senior Equity Analytic
NPP, we do not know the cash requirements of the company, hence I cannot explain why they have invested in FD, but this is reasonable as I beleive the funds from rights issue might have been placed. there are worse cases than these, If yo see KGAL they have deposited more than 1 Bn in Treasury Bills, dont you wonder why????? for more than a year..... anyway I suppose we wont see the FD in the March accounts, as they have commenced the secound Phase.

Agreed it may take considerable time to complete the project, the company target to complete in three years, which is very much optimistic. One thing to keep in mind is, the Country is in tremendous growth mode.. who know we maybe a par country like thailand, Korea or India in another five years time, at that time projects like Havelock city will benefit first.

Seyon,
I feel that the real estate sector is flat, but stady growth can be expected, further due to due to heavy investments in infrastructue the land values can grow significantly in the medium term and are also good alternative investment.
http://www.havelockcity.lk/nae.htm

Regds

8OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 10:23 pm

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
npp wrote:I must agree about the economic conditions at that time. But 226 apartments vs. 1080 now.
Where will all these people be moving into? Surely it will take a lot of time to happen
This is a great concept and a good project IMHO.

Another concern I had is the large sums of money in FDs. Is it really good for a company to have excess cash and that in FDs? It could be for a short term till the repayment of a loan but then there should be better options. I may be wrong

Btw, these type of discussions about a company are really important. Merely looking at P/E ratios and NAVPS to evaluate a share is not enough. Smile

Yes agreed selling 1080 is not easy task. However the company must have done good feasible study.. when put up WTC no body thought, that would be feasible during the bad economic condition.. Now the occupancy ratio about 72%. Now the economic condition are pretty stable...( But i am not very much aware about the real estate mkt.. ok we will look in to that), so there will be a possible to become this project as feasible...

How do u think guys...



Last edited by seyon on Tue Apr 19, 2011 10:44 pm; edited 1 time in total

9OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 10:29 pm

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@lion wrote:NPP, we do not know the cash requirements of the company, hence I cannot explain why they have invested in FD, but this is reasonable as I beleive the funds from rights issue might have been placed. there are worse cases than these, If yo see KGAL they have deposited more than 1 Bn in Treasury Bills, dont you wonder why????? for more than a year..... anyway I suppose we wont see the FD in the March accounts, as they have commenced the secound Phase.

Agreed it may take considerable time to complete the project, the company target to complete in three years, which is very much optimistic. One thing to keep in mind is, the Country is in tremendous growth mode.. who know we maybe a par country like thailand, Korea or India in another five years time, at that time projects like Havelock city will benefit first.

Seyon,
I feel that the real estate sector is flat, but stady growth can be expected, further due to due to heavy investments in infrastructue the land values can grow significantly in the medium term and are also good alternative investment.
http://www.havelockcity.lk/nae.htm

Regds

How much quote for residential house? lion u have any idea...

10OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 10:41 pm

factFINDER

factFINDER
Manager - Equity Analytics
Manager - Equity Analytics


..........can u explain the current trend of the real estate mkt... appreciate if u share some articles related to this.....




@seyon

REAL ESTATE prices have almost a direct relationship with LAND prices... a survay report "Monitoring land prices important - Central Bank" published on DailyFT - 16/03/2011 (page 13) which was from FSSR/Central Bank of Sri Lanka. http://www.ft.lk/2011/03/16/monitoring-land-prices-important-%E2%80%93-central-bank/

Accordingly, prices of lands in all categories (Residential lands, Industrial lands, and Commercial lands) have been increased since JUNE 2009 and are UNLIKELY TO DECLINE IN THE NEAR FUTURE!!


Good LUCK Very Happy

11OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Tue Apr 19, 2011 11:51 pm

Antonym

Antonym
Vice President - Equity Analytics
Vice President - Equity Analytics
Yes - OSEA is an excellent investment, as has been mentioned. In my view, any profit making company whose share price is significantly less than its NAV is a great buy.

In the long run, real estate prices in Sri Lanka will trend upwards - for the reasons stated and also because supply is limited and demand (represented by people and their purchasing power) will increase. OSEA has an edge over other real estate companies because their properties are superior; this means that they can charge a premium; this would translate into higher GP margins on apartment sales, for instance.

Mr Murtaza Jafferjee - Managing Director of JB Securities and an investor whose opinions I respect - is among the Top 20 shareholders.

Just one note of caution: OSEA's price has tended to trade within a fairly narrow range - probably because there are over 843 million shares issued. Nevertheless, you are likely to see above average profits if you are willing to adopt a 'buy and hold' strategy.

+ Rep to lion for a logical post!

12OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 12:18 am

StocksWatch

StocksWatch
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Thanks lion for the wonderful analysis.

There are mainly two types of buyers for the real estate products. First type of buyers are those who buy for consumption and the second type are those who buy as an investment.

The value of real estate products tend to appreciate a lot in a growing economy. So we can expect a demand for these properties at HC project from the prospective investors who are interested in investing in properties. I am sure Overseas Reality must have done a proper economic feasibility study before venturing into a huge investment like this.

One other factor to consider when analysing these real estate companies is that their book value may be quite out of date. It is important to check if the company has done a revaluation of assets recently to make sure that the book value reported in the accounts represents current value.

13OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 12:34 am

Chabbi

Chabbi
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@StocksWatch wrote:Thanks lion for the wonderful analysis.

There are mainly two types of buyers for the real estate products. First type of buyers are those who buy for consumption and the second type are those who buy as an investment.

The value of real estate products tend to appreciate a lot in a growing economy. So we can expect a demand for these properties at HC project from the prospective investors who are interested in investing in properties. I am sure Overseas Reality must have done a proper economic feasibility study before venturing into a huge investment like this.

One other factor to consider when analysing these real estate companies is that their book value may be quite out of date. It is important to check if the company has done a revaluation of assets recently to make sure that the book value reported in the accounts represents current value.

Thumbs for guys who done great JOb so far .. bt i wanna add small anothr + point for Stockwatch abt revaluation ..

In case if OSEA gone for revaluation defa it wud get high Book value since the premises of WTC & HVC will get high rates. Further WTC wud be have higher portion bcz now Sri Lanka is FREE COUNTRY Very Happy

14OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 3:26 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@seyon wrote:
@lion wrote:Hi Friends,

To consistently beat the market without taking risks we must always invest “Value stocks”. This is the strategy employed by the world’s greatest investor Warren Buffet. By this process we would be able to identify stocks which will outperform the market. I consider OSEA as value stock by using the general steps used to identify a value stock. I have summarized my analysis on OSEA below:

1.It should be a great business: A great business is one in which we could confidently forecast the profits of the company. OSEA, continuous profitability from 2005 to 2010, both in terms of revenue and fair value gain. World Trade Centre is the premier business location in Sri Lanka, as at to date WTC unmatched by the standards by any business locations in the country. Further the Company has launched the 2nd phase of Havelock City Project. With 75% of the apartments of the phase already sold out. The high built quality of the apartments which boast the largest green space and car parking ratio of any development in Colombo are characteristics that will continue to attract many discerning buyers to HC. Undoubtedly the business is a Great business.

2.Undervalued –Trading at a Discount to book value. This is the most important fact for me. Price to Book value =15/26.67=57% I.e. the stock is infect trading at a huge discount to the book value (44% discount to the book value) PE ratio= 15/1.23=12, fairly priced, but compared to the stocks in the land & Property sector , still underpriced.

3.Durable Competitive Advantage: When we look in to the business model of OSEA, it is very unlikely that another entity to build futuristic cities such as HC or places like WTC, due to Capital requirements, location, business ethics, etc.

4.Future Growth Drivers: Havelock City Phase II, ambitious plan to complete in three years. Once completed It will consist of approximately 1,080 residential apartments, a commercial complex, recreational and entertainment facilities, in line with its ‘City within a City’ concept. Structured Growth Plan leading to higher ROE to stakeholders. rise in income level, co

5.Conservative Debt: Low level of debt. Total Borrowings to Current Assets- 2,876/6275=45%, which means that 45% of current assets is sufficient to pay off the borrowings of the firm.

6.Management is buying/ holding stock- The major shareholders Shing Kwan Investments Co. Ltd has subscribed fully for the recent rights issue and also subscribed for un paid rights, Which is a strong indication for the confidence in the company by the stakeholders.

I am in the process of collecting OSEA, and wanted to share my analysis for further expert comments and suggestions.

Regrds,

Good descriptive post lion.. I am also in the process of collecting this shares little bit, thinking to hold for long-term. Look at the sectors book value and PBV, some are trading at below the book value... However out of that OCEA is very much attractive in terms its business model... I haven't done much analysis of other counters, whose market value less than mkt price... If any body analyzes pls share with me..

COMPANY------------------------------------ MARKET PRICE----BOOK VALUE---- PBV
C T LAND DEVELOPMENT PLC------------------------34.00---43.54---0.78
YORK ARCADE HOLDINGS PLC----------------------- 38.20---8.05--- 4.75
COLOMBO LAND & DEVELOPMENT COMPANY PLC ------22.50---14.02-- 1.60
PROPERTY DEVELOPMENT PLC -----------------------46.00---28.26-- 2.94
EQUITY TWO PLC -----------------------------------33.50---16.24---2.06
OVERSEAS REALTY (CEYLON) PLC--------------------14.90---28.68--- 0.52
EAST WEST PROPERTIES PLC------------------------10.60 ---12.6---- 0.84
CEYLINCO SEYLAN DEVELOPMENTS PLC-------------- 14.80----47.57---0.31

CITY HOUSING AND REAL ESTATE COMPANY--------- 20.00----9.36----2.14
CARGO BOAT DEVELOPMENT COMPANY PLC---------- 140.00---64.19---2.18

@lion

Further can u explain the current trend of the real estate mkt... appreciate if u share some articles related to this.....

Happy Trading





Seyon good work. Just note that EAST book value got updated drastically recently after re-evaluation.

15OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 3:31 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@lion wrote:Slstock, Whats your view on OSEA?

Lion,
As you and others explained the background and future prospect with good justifications I will not re-comment on those. In my view this is indeed a very good counter for medium to long term. The right issue price as around Rs 15 where the parent company ought most of it. With the new project infusion their growth will be good. Also I read somewhere the chaiman say the occupancy at WTC will go up in 2011.

My only concern right now is the question whether it is the right time to enter if for short term. Land and Property will have its time in the future for sure. If for long term , not doubt this is a good time.

16OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 5:27 am

factFINDER

factFINDER
Manager - Equity Analytics
Manager - Equity Analytics
@slstock

Each year, OSEA include "gain/loss of FAIR VALUE ADJUSTMENT" to their Income Statement. Therefore most propably investment properties of OSEA shown in the accounts are up-to-date and there will be no significant gain, even they go for a revaluation.

A research report resently published by Asia Securities/Asia Wealth Management emphasised that "this is the ideal time to invest in OSEA" (obviously Long-term prospective).


Good Luck !! Very Happy

17OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 6:01 am

Aamiable


Vice President - Equity Analytics
Vice President - Equity Analytics
Many prdicted on this forum,... reseach reports, ... charts. .. investment funds.. individual investors ... institutions all of them pesume. ... this is a good time..

Very Happy Smile Smile Smile Very Happy

18OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Thank you alll for your valuable comments on Wed Apr 20, 2011 7:32 am

lion


Senior Equity Analytic
Senior Equity Analytic
Hi friends, appriciate all your feedback and comments. I now feel confident that indeed my decision to buy OSEA was a good one. My stratergy of buying value stocks is for medium to loongterm, anyway if we buy a share at a good bargain price, the market will realise the value of the share, and soon it will trade at its intrinsic value or above.

Seyon, the price of the Havelock city apartments sparts from 19Million, saw in a news article.

The current market trend is very risky, and cannot be predicted in the short run, so I belive a buy and hold stratergy is the best option available. anyway if we buy shares like OSEA, there is no need to worry as we know that the current price is indeed a bargain price.

Have a good day.

Regards.

19OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 10:10 am

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics
Thanks Lion for the post and the discussion. It had brought many perpspectives. Very thoughtful discussion.

I too have a sense that real estate market is picking up. However, not to say that there are some drawbacks as well. One key reason may be the improvement in security situation in North East, which has resulted in large out flow of Tamil speaking community from Colombo district. But, I trust this sould be set-off by renewed interest of our expatriates community who were major buying force of apartments. Revival of western / ME economies will take some time, hence it will be gradual revovery in the real esate prices as well.

20OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) Empty Re: OVERSEAS REALTY (CEYLON) PLC (OSEA.N000) on Wed Apr 20, 2011 11:10 am

lion


Senior Equity Analytic
Senior Equity Analytic
Thanks Salt,

We should have more discussions like this nature, in order to educate the investors and educate ourselves. One fact forgot to mention was 30 Cents Dividend from OSEA, then the avarage cost willl can be further reduced to 14.70.

Regards

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