Why CSD is an amazing share

Humble · 1 Why CSD is an amazing share Tue Jul 02, 2013 4:18 pm

Humble

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This share was on its way up - it moved from 10.50 all the way to 12.50 (within a few days) a few weeks ago. It only came down since the overall market moved down - if the market hadnt moved down, it may have even gone up to 14 since it was gathering momentum.

The NAV of this share is 28! It has seen a growth in NA during the last year. And lets not forget that land prices in that area (Towers) has gone up considerably (In areas like Colombo 2-7, land prices have gone up by 25% over the last few months) so once they revalue their assets, it could be worth around 30. A 30 ruppee share that is making decent profits trading at 10.70!!! One of the best shares out there! People are put off by the Seylan name but it has new management and shareholders so who cares about a silly name! Btw guess who two of the biggest shareholders of the company other than the bank? JB Cocoshell and Mr Dhammika Perera. Those two are two of the best investors around. They wouldnt have got into it if they didnt think it was a good share. You have nothing to worry about with this share, my friends. This is the time I would move in.

Jana1 · 2 Re: Why CSD is an amazing share Tue Jul 02, 2013 4:47 pm

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JB coco shell? Are they finest investors??? If so why they stick with PCH ??? Must be bought around Rs 5 last qtr now 1.5...

They bought PCH during Sep 2010 nearly 11 rs again got exit around that price when Dr. S started buying 14 mn shares later it went 30... They are day dreamers....

Last edited by Jana1 on Tue Jul 02, 2013 5:18 pm; edited 1 time in total

Light of Hope · 3 Re: Why CSD is an amazing share Tue Jul 02, 2013 4:54 pm

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Already moved in...

don't worry it's on radar of many

Light of Hope · 4 Re: Why CSD is an amazing share Tue Jul 02, 2013 5:11 pm

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After you pointed out TWOD it went down around 10%.

Humble · 5 Re: Why CSD is an amazing share Tue Jul 02, 2013 5:19 pm

Humble

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Light of Hope wrote:After you pointed out TWOD it went down around 10%.

Excuse me but I never said to buy TWOD! I said 'dont spread rumors and blacken people's name without proof'. If you want to see my stock recommendations, kindly see my post "top 5 shares to buy"

I clearly said "Along with CSD, TJL and NTB, LLUB one of the best shares to buy! Dont buy nonsensical shares - buy solid companies - chances of burning your fingers are less". I also recommended JKH in a previous post.

"Top 5 shares to buy

Thu Jun 27, 2013 2:41 pm by Humble
My personal picks:

AEL
NTB
COMB
CSD
LLUB

Haycarb should also do well given the exchange rate depreciation

Any comments? Check out the Financial Reports!"

WildBear · 6 Re: Why CSD is an amazing share Tue Jul 02, 2013 6:53 pm

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The good thing about CSD is they are virtually debt free and it appears that they are distrbuting large portion of their earnings as dividends. So they can improve their earnings in the future, this would become a decent dividend earner. CSD also has a free hold land in union place, I think managment still undecided whether to dispose or develop. If it's a disposal we can expect a exceptional one off dividend as well.

hariesha · 7 Re: Why CSD is an amazing share Tue Jul 02, 2013 8:27 pm

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CSD is OK, only problem is they can't determine the rent amount that Saylan bank has to pay, which is their main income if not the only income.

I believe rent paid by the Saylan Bank is below the market rates. That's may be the reason this share to trade bellow the real value. There is a big mismatch in earnings/share and NAV/share.

I think shareholders of CSD should demand from the management to negotiate a better deal from Saylan Bank.

rainmaker · 8 Re: Why CSD is an amazing share Tue Jul 02, 2013 9:02 pm

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hariesha wrote:CSD is OK, only problem is they can't determine the rent amount that Saylan bank has to pay, which is their main income if not the only income.

I believe rent paid by the Saylan Bank is below the market rates. That's may be the reason this share to trade bellow the real value. There is a big mismatch in earnings/share and NAV/share.

I think shareholders of CSD should demand from the management to negotiate a better deal from Saylan Bank.

You obviously have not seen the top 20 shareholder list Wink

It's not that valuable since the JKH City Hotel project is not happening over there. Seylan will continue to be the tenant for as long as you live Razz

Chinwi · 9 Re: Why CSD is an amazing share Tue Jul 02, 2013 9:32 pm

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Yes CSD is an amazing share, excellent location. .

They had huge debt few years ago erasing their income. Now they are free of debt.

Unfortunately this entity is trapped in Seylan bank's cage.
SEYB hold 51 % of CSD and occupying major part of the bldg, they have not increased the the rental for past few years.

Major shareholders of SEYB r SLIC, BRWN, Dr. T. Sen and LOLC.

I think there is a genuine case here and minority shareholders should fight against this unethical practice.
Even if they stay in it, the rental should be in tally with prevailing rates.

The following table shows how they maintained same rental for last many years.

Rental Income for each Quarter.

2006 March 36 million
|
|
2009 March 34 million
2009 June 34 million
2009 Sept 34 million
2009 Dec 36 million
2010 March 35 million
2010 June 34 million
2010 Sept 36 million
2010 Dec 36 million
2011 March 38 million
2011 June 37 million
2011 Sept 37 million
2011 Dec 35 million
2012 March 38 million
2012 June 37 million
2012 Sept 39 million
2012 Dec 40 million
2013 March 38 million

Amazing !

Source: CSE.lk reports.

Note : I hold about 75k

Last edited by Chinwi on Tue Jul 02, 2013 10:16 pm; edited 1 time in total

rainmaker · 10 Re: Why CSD is an amazing share Tue Jul 02, 2013 10:15 pm

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The rental should be 400 million .... usually 10% of the asset value in prime city locations .... however 51% shareholder is boss. Director and admin expenses are only 14 m due to bosses orders Very Happy

Last edited by rainmaker on Tue Jul 02, 2013 10:22 pm; edited 1 time in total

Humble · 11 Re: Why CSD is an amazing share Tue Jul 02, 2013 10:17 pm

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rainmaker wrote:

hariesha wrote:CSD is OK, only problem is they can't determine the rent amount that Saylan bank has to pay, which is their main income if not the only income.

I believe rent paid by the Saylan Bank is below the market rates. That's may be the reason this share to trade bellow the real value. There is a big mismatch in earnings/share and NAV/share.

I think shareholders of CSD should demand from the management to negotiate a better deal from Saylan Bank.

You obviously have not seen the top 20 shareholder list

It's not that valuable since the JKH City Hotel project is not happening over there. Seylan will continue to be the tenant for as long as you live

That is not their main income - they have apartments

Chinwi · 12 Re: Why CSD is an amazing share Wed Jul 03, 2013 1:33 am

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CSD rental income distribution
Yes, they have apartments , raja bojun and offices too.
Why CSD is an amazing share Csd_in10

Annual Report 2012

WildBear · 13 Re: Why CSD is an amazing share Wed Jul 03, 2013 7:56 pm

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Don't know whether the apartment also rented for Seylan Bank big shots at a cheaper rental:P

Humble · 14 Re: Why CSD is an amazing share Wed Jul 03, 2013 8:16 pm

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rainmaker wrote:The rental should be 400 million .... usually 10% of the asset value in prime city locations .... however 51% shareholder is boss. Director and admin expenses are only 14 m due to bosses orders

The bank doesnt occupy the entire building! CSD has apartments etc - the bank occupies around 50% of the entire property (CSD has two towers: one is apartments) + CSD has property in Morartuwa and Union Place.

So the property on Galle Road (Seylan Towers) is probably around rs 3.5 billion, 10% of that is rs 350 million.

If the bank occupies 50%, they should pay around Rs 175 million a year - which is what they pay!

Aubrey Perera · 15 Re: Why CSD is an amazing share Wed Jul 03, 2013 11:30 pm

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hmmmm interesting coverage ....looking at all of this I would say this ideal for the long haul...with CMB developing at amazing pace it will only take Seylan bank relocating and freeing up the building to further enhance the profitability of CSD, if this will happen in the distant future is left to be seen. but they are sitting on a gold mine at the moment as land in these areas in years to come will be extremely valuable. I currently Hold around 20500 shares @ approx 11.10 average cost. lets see where this ends up Smile