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TIME TO BULK UP THE POSITION.

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Super Contributor
A nice,neglected rand hedge.
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17 REPLIES 17
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Super Contributor
- There are something like 40 high street retailers closing everyday here in the UK. Most of the large chains are cutting back on their floor space. Today Argos announced they intend closing 95 retail outlets across the country. The only chains holding u
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Super Contributor
The trend is INTO shopping centres. UK retail is being modernized. Long term - I am sure "property as we know it" is doomed - ie. there wil be major changes. Shopping centres of this quality will be of the "last man standing" variety. CSO - is a serious company with NO South African exposure. My take is that the Rand will descend into oblivion and local funds seeking a blue chip hedge WILL buy this thing.
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Super Contributor
Quite a good chart too.Looks like it's on the way up.
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Super Contributor
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Super Contributor
Better to ask yourself what am I buying ? This is not going anywhere fast or soon. UK economy is going to stutter sideways for at least two moe years. Source of growth - ??? There is a significant premium put on London properties - with the converse applying - and this lot don't own only London sites. CCO was a better bet. Trade but think carefully about investment.....
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Super Contributor
Rand hedge. Forming extended base. Downside should be limited. Upside more probable. Huge influx of wealth into the UK through Greek / French / Spanish financial refugees. A nice place to park cash in this market. Capex seems tobe stabilising - yield will drive price on the FTSE. This is NOT a classic "trading" stock. SO - if you are looking for a pure trade - probably better to look elsewhere. I am happy to move money from local real estate in to this.
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Super Contributor
Would like to see a bit of a pullback though.
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Super Contributor
Threshold - "huge inflow of Spanish and Greek and French money - " ??? purleaaasssse - serious money goes into private equity for starters and I don't think the sale of even 100 houses in Knightsbridge to expat greeks and other Southern Europeans is going to tilt the scales in any direction....maybe a better choice of greek food ??
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Super Contributor
What on earth are you talking about? It is their wealth that they are taking over there. On a recent Bloomberg piece it was maintained that there are now more French milllionaires in London than in Paris.This is nota 100 little houses - this is a migration of wealth and of the best that these countries have to offer. This is not South African stuff -this is real wealth.
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Super Contributor
CSO is a UK REIT. Imported funds seeking yield should find their way into these tax-structured assets.
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Super Contributor
It doesn't matter if ALL the French Millionaires end up living in London or owning a house in London - the question is where are they going to invest their money - it sure isn't going to be the UK. You seem to have a disconect between where people "hold" their funds and where they end up living and investing?? ( let alone where they pay their taxes which is residence based.....) The discussion is about shopping centres.....in a depressed economy.....run by a company who in the past have not covered themselves in glory... and whose ability to squeeze yields out of that base is limited by the reality of depressed rentals and lowered ( or flat) turnover.
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Super Contributor
They are relocating to take advantage of the English TAX system. That implies that they will invest over there even ifonly in termsof the UK the tax on this wealth. Understand?
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Super Contributor
They are trying to escape the foreign tax systems by seeking to be taxed in terms of the English system. The economy will get a shot in the arm from the tax - that will drive asset values- shopping centres included. These centres are "A" grade - they are not selling to the impoverished. Furthermore - I am not advocating CSO above other investments - I am saying - it represents an asset hedge available on OUR market - and one which looks ready to run!
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Super Contributor
Taking advantage of the English tax system?? There is none( and this is nothing to do with notionally lower marginal tax rates). Moreover you are still it seems making the mistake of linking -in a straight line -"where you live/reside is where you invest" - or similar. May I suggest you would do better to stick to the charts( and forget these "Bloomberg facts")? Enjoy your weekend.
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Super Contributor
They are relocating to take advantage of this tax system. It does NOT matter where they invest - they will still participate in this tax system. Furthermore England has a residence based system which allows ford disparities in rates by subscribing to a source-based approach too. England has always been a tax haven in times like this - somehow you know better and all of the wealthy of Europe are wrong. Even in terms of houses - Sotheby's sold 200MILL EURO to French citizens in April alone. You have a nice weekend now too.
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Super Contributor
if you guys want to do some sort of currency speculation, why dont you just trade the currency?
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Super Contributor
EXPENSIVE and no dividend and no growth asset underpin. AND a wild, wild ride. But yes - clean and total solution.
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