Is it time to buy CSO?

[DEP]

... Is it time to buy CSO - UK REIT? Its come out a bit in the past week... R38.80 is close to the low for the year!

[SimonPB]

surey you buy something at the high of the year, not the low ?? anyways, did you read the sens of this morn ??

[DEP]

Yes, its good news in medium term... possible bad in the short term.

[SimonPB]

what, further dilution ??

[DEP]

They are issuing shares for income steam... Neutral in my books. Market just using this as a excuse to pull price down so someone can pick it up cheaper.

[SimonPB]

issuing shares for income steam ?? surely they should run their business for income stream ?? they issueing shares for purchases, debt is a way better method as you pay it back and it is gone .. issued shares you pay for forever and forever ..

[DEP]

Yield of 5.58% ... Sens quote:"It is expected that the Acquisition and the Placing would have a neutral impact on earnings per share in the first full year and on net asset value per share"

[SimonPB]

well sure they say that, and heck lets assume it is true .. and that is about the deal .. my issue is hwo they payiong for it .. .. they (read share holders) pay for this forever as they used shares .. debt a much better option as you pay it off over a few years, then it is all settled .. shares you pay for forever as they earn EPS nd dividends for ever .. so it's not about the short term but rather that they have a perpetual obligation for this 'debt' ??

[DEP]

If I read between the lines - the seller "Peel Group" wants shares rather than cash, hence if the deal go through Peel group become the biggest shareholder in CSO = 20%. English billionaire John Whittaker is the "big boy" at Peel Group. So if its good for Mr Whittaker its good for me! Q? where will they pitch the new shares at?

[DEP]

Hmmm 5.5% up today

[SimonPB]

and that's my point .. Peel Group want shares coz then they get paid forever .. existing share holders are paying forever .. which side would you want to be on ??

[DEP]

your argument makes no sense...

[DEP]

Missed opportunity!!!

[SimonPB]

lol, OK last chance .. then we can move on .. when you pay somebody with shares, you pay them forever as those shares have rights on earnings forever .. debt is paid off just once, then it is paid ?? this is why a rights issue is the last option for funding .. straight debt always better coz it is finite ..

[DEP]

Yep, "bad deal"according to you... Shares up 5% today. How do you explain that? :/ Now i'll have to wait...

[SimonPB]

come on .. you better then price equals reality .. it was down 5% yesterday .. so if anything = confused ..

[DEP]

Ja, Ja ... 9% up today. I am disappointed at myself (listing to dumb argument on this site)... been watching this company for over a month!!!

[ET]

The reason theyâ_Tre up today is coz of the second sens, letter from Simon Property Group with a potential cash offer for CSO at an unspecified premium to NAV. Nothing to do with yesterdayâ_Ts announcement or how they want to fund that deal.

[kwagga]

Just buy the bloody shares already. If you're so sure about this share, why share your concerns with this forum, just to argue against advice different from your own point of view. I've posted on a few shares I've thought were good buys. All came off very nicely and you will always find the pessimists shooting your choices down. I've always ignored whose posts, seeing that I never punt a share before I've done my own technical and fundamental analysis. I don't fish for advice before I buy. I buy first and then post.

[DEP]

I read the sens this morning... point is I was prepared to pay R39 yesterday, I will not pay R41.50 today (be waiting for a month, i think i miss it). Will have to wait... :(