What do you think-CITK

Do you think in this price (Rs6.00),time to enter CITK,Usually that hotel share is giving mid term benefit.

There was a corporate Disclosure on 11.11.2013 .

http://sharemarket-srilanka.blogspot.com/2013/08/the-deadly-art-of-stock-manipulation.html

Everything will be decided by the players behind it.

It will come down know to 5.50 Like  

There is no sign of the hotel in the marshy land.

Hence, the value of this share will depend on the progress of CLND.
CITK is the 2nd largest shareholder of CLND, with 40 million shares (20%) .
I am waiting for Colombo Fort development launched by CLND.

As I think Lands in Colombo has potential and have no money to buy them , I bought the marshy Land in Kalpitiya (CITK) for long term. Not sure,  a wise thinking or not.

After 2 years no hotel constructed as promised in IPO prospectus... How ethical or legal is that..?

Lot of insiders with this knowledge exited in Sept 2012 with lot of fireworks..

Less knowledgeable can only hope..

Chinwi, why did you not buy CLND ?

Just curious

The Citrus leisure site says the "Hotel commences contruction in 2014". They published that thay are going to constrcut 32 water villas and a hotel in 78 acre land.

They didnt tell that Until that they are going to take the money and invest in CLND. We could have invested in something else

So for them to commence construction of the hotel they have to pump and dump.


This is what was published in 2012. I remember this article because of the Villas, Beach access private Gondolas and Citrus Leisure managing it on a time share basis.

http://www.lankabusinessonline.com/news/sri-lanka-citrus-leisure-group-to-sell-time-share-villas/404942945.

Sept 09, 2012 (LBO) - Citrus Kalpitiya, a unit of Sri Lanka's Citrus Leisure group said it will build 32 villas bordering a lagoon in the Indian Ocean Island's western coast to be sold on 99-year leases with an offer to manage on a time-share basis.
The firm is also planning a hotel in 78 acres of land it has in Kalpitiya, an area made up of a peninsula and lagoon, north of Sri Lanka' capital Colombo.
The firm said it had acquired 35 acres for 67 million and secured another 42 acres on a 99-year lease from a company called Asia Sports Management Private Limited.
"Under the first stage, we plan to build 32 upmarket villas that overlook the 50-meter wide fresh water way," the group said in its annual report.
"Each villa, spread over 40 perches of land, is custom designed for owners with space to entertain on the property.
"The villas will have their own gondola to allow residents to access the sea. We hope to sell the villas on a 99-year lease and give owners the option of allowing us to manage on a time share basis."
'Time share' is a concept where a person can 'purchase' the use of a hotel room or property in the same period in each year (such as a week) over the lifetime of the property (such as 25 or 30 years). They can use it or have it rented to other holidaymakers to get some income.
In a typical property, times shares in peak seasons where the rooms are easily occupied has a higher value than a low season time share. The holder of one time share could swap it with another in one year and vacation in a different location or country.
Time shares can also be sold when a secondary market develops and their value can fluctuate over time.
Thought time share has attracted an unsavory reputation in some countries due to deceptive or high pressure selling tactics, and promises of secondary markets that do not exist in reality, in well regulated markets have developed in countries like the US they have become popular.
A hotel which will be the second stage in the Citrus Kalpitiya project, will overlook the sea on a one kilometer beachfront and will have 24 individual chalets and 126 resort-style rooms, Citrus Leisure said. It is designed by architect Murad Ismail.
The firm said has been earmarked as a future tourist zone, land bordering the lagoon or the sea, blocked off for the hospitality industry.
"The area is also popular to spot whales or schools of dolphins, within a short distance from the Mainland," the firm said.
"Kalpitiya is also strategically located close to the Wilpattu, wildlife sanctuary that is home to leopards, elephants, the sloth bear and many species of birds."

nirowat wrote:Chinwi, why did you not buy CLND ?

Just curious

Just my lazy thinking.

With CLND investment (avr cost 33/-, current @ 39/-) asset val of CITK is around 11/-

If I buy CLND it will cost me 40/-
When CITK is trading around 6/- , I can buy CLND through CITK  50% cheaper.

I 'hope' if CLND appreciate by x % CITK will grow more than that. Just gut feeling only. Do not take this  seriously.
p.s.
Roughly, if CLND rise by 50% , asset value of CITk go up by 100%.
90% of current NAV of CITK is in CLND.

Chinwi wrote:There is no sign of the hotel in the marshy land.

Hence, the value of this share will depend on the progress of CLND.
CITK is the 2nd largest shareholder of CLND, with 40 million shares (20%) .
I am waiting for Colombo Fort development launched by CLND.

As I think Lands in Colombo has potential and have no money to buy them , I bought the marshy Land  in Kalpitiya (CITK) for long term. Not sure,  a wise thinking or not.

Have u visited recently?

I've been to TANG last month, on my way back I paid a visit to CITW site. Hotel construction has started. I saw the big buildings being put up.
So I think at least they work on one hotel so hopes are there yet... But whether they build the promised hotel or a beach restaurant is yet to be evaluated.

I am not going to whitewash them but it was our mistake, not reading the prospectus before investing at IPOs.

They have not used IPO money to buy CLND. They bought CLND before IPO 'as a long term investment' according to the prospectus. (Page 13)

40.3 miilion CLND shares @ avr. 32.20

smallville wrote:Have u visited recently?

No.
Somehow, I feel the interest as a tourist destination is deviating from the area to other parts of the country.

2. I still do not know the real location of CITK land. If it is facing the inner lagoon, OMG the logged water is very much bad smelling. If faced to the Indian ocean, the sea is dangerously deep and rough. The sea around the Islets is good.

I think it is better if they redesign the project and estimates into low cost eco resort .

So present scenario: Kalpitiya has to en-cash CLND holding to start building their resort.

Can they find a buyer..??

Or go for another public offering..??