time to say goodbye

[partridge]

Well its like this...,a PE which is absurd and a virtual recovery to the price @ original listing - but there is no new news and Sir Terry's plans are, well, ...you tell me? Time to go away and come back when the band has had its break...

[THRESHOLD]

While I have no interest in this counter, it does bear mentioning that the PE is not as important to this type of company as it is to a traditional trading operation. The value here is more about the realisable value of the assets based on a normalsed rental stream over the foreseeable future and with indutry normalised occupancy rates. Since her assets exist in an ultra-low interest rate environment, the discount factor applied to yield a present asset value is very low too. This elevates the present value in relation to SA poroperty.

[#3]

You go boy, you tell him! Okay, seriously, the comment was brilliant. Over the top, but spoken like a well educated man. Am I right in my assumption that what you are saying is that you buy this share for the dividend income, a taxable one, but still a dividend income?

[Rams]

Earnings per share is taxable and there is profit before tax and after tax, so dividend is after tax income in the hands of the shareholder. So it may be something else, like the PEG ratio..? future earnings, growth projections

[geordie1]

I agree the pe looks crazy but this is a breakaway from Liberty international so it is very difficult to truly establish it's value.It has no real history to investigate-it is also coming out of a major recession in property in uk and earnings are very subdued-It has major recovery potential over the medium term but if you cannot wait then understand why you would move on.It does have control over pretty decent property.

[partridge]

Thanks for the combined wisdom shared. On the one hand I can understand a low PE - except that I can always recall the early 90's and the absurd valuations put on Japanese property and their stock market ( still to recover). But on the other hand when you have to look hard for a reason to justify a price then it better stand up to harder scrutiny. I would recommend that those of you who are interested go and have a look at Terry Farrell's website and see what the lad did in China - he is goood - if not the best urban renewal planner. ( Which encourages me again becos this lot are not the sharpest tools in the box managementwise.) In the meanwhile they will tinker around with central London properties and add a room here and a room there ( who in their right minds would want to live over Covent Garden?) So the whole game is resting on Earls Court -and I think the key will be what they come up with planwise in second half of 2011 - but that is a long way off...

[sponono]

Historical high. Mmmmm.

[partridge]

And its a tad higher than the historical high - are the tea leaves telling us its time to sell?