Re: Some Interesting Facts on CITK

[harieshaTop contributor]

Ok. Very interesting discussion about Kalpitiya. But that's Egg. Before it came the hen. Or is it the egg came first...or the Hen?

When CITK invested in CLND? What prices?

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[stocks hunterTop contributor]

Even now they are INVESTMENT in CLND is at Rs403,386,000/ profit.That is Rs2.50/CITK share. Am i correct here? Their NAV/share stands at Rs8.61.

hariesha, No its first CLND.Then CITK.After that CLND and now CITK. he he......

[HAL9000Top contributor]

With the above fact, REEF share holders are in a better position than CITK, Now REEF has two functioning hotels with 250 room capacity, and their investment in subsidiary CITK is at a unrelized gain.
Problem with CITK shareholders is that there is no operational business model in visinity that can generate revenue at least for another 2-3 years even though their investment in CLND have given a capital gain.

But things can be changed if CLND stake is sold to some party with at least 50 and if they can use the money to acquire an operational hotel rather than taking years to build one, that would be the best thing to happen for CITK shareholders.For this to happen DJ should buy this CLND stake for him self for a higher price, or sell this for another party at a higher price, but both options are unlikely to happen.

The other option is since REEF holds 70 % of CITK, they can sell down further 20 % to another party and buy back CLND shares owned by CITK.

[NuinthTop contributor]

Nice to see different scenarios from members. As small said this is good for REEF management too, get a idea of people's attitude about the company.

Any way, with the booming of tourism, CLND projects, powerful people involve with company...etc what can we expect ? As SH mentioned several time, REEF is a future company. They will show their real strength in future.

Good luck.

[harieshaTop contributor]

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"Alternatively the company will decide at an appropriate future time to divest part or in full the investment in Colombo Land and Development Co. PLC."

Is the appropriate time is gradually reaching ?

[The AlchemistTop contributor]

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"Alternatively the company will decide at an appropriate future time to divest part or in full the investment in Colombo Land and Development Co. PLC."

Is the appropriate time is gradually reaching ?

Hariesha, to be brutally honest, CITK has been a disaster for both the initial investors (90 %) + IPO investors (10 %).

For the initial investors who were "Privately Placed" at Rs 10/-, 3 years opportunity cost in FD is approx Rs 4, so there cost is around Rs 14. They have no option now than to buy some more around Rs 6 and average and hope the CLND magic works. 

For the 10 % who subscribed to the IPO (@ 17.50) and held ?, they could have bought CLND with the Rs 17.50 instead and now have approx Rs 36 worth of CLND (instead of sitting with Rs 6 worth of CITK). For them, unless CLND goes to approx Rs 140, it could be still a opportunity loss.       

Due to current situ, i think it is highly unlikely that any major moves will be made by UDA re pettah land, CITK property etc. all that may have to wait post elections ? 
maybe its just not a good time to visit these "sensitive" issues especially with the connected parties concerned.

But yes, CITK < 6, has a NAV of Rs 12 based on current CLND Prices. and for all the hype about CLND, when has it ever made any real money ? it made 34 cts for 2013 dec after revaluing there property. all their big future plans will take money and time to materialise.

[sapumal]

Can anyone guess why Capital trust and DJ sold GSF shares @once ?
Capital trust could sell them @higher price.
My guess is DJ indirectly using capital trust to keep his shares. So he can buy and sell unnoticed.
If DJ is the actual second largest share holder of CITK it would be good for CITK.

[sapumal]

This land is in the Akkarai pattu. Is anyone know where it is ?

[stocks hunterTop contributor]

Good opportunities are creating here. Price is getting attractive now.