The leverage of their JV which makes the UK property is eye popping to be honest.
22 times. To be fair, we dont know which is bank loan, which is trade payable. About 33% is advances.
Giving them best case scenario, 10% net margin, they are making 1.6bil over not sure how many years.
Book at 2.5bil. I'll just whack it down to 1.6bil market cap, because most of it is advances to overseas subsi, and im not sure about property ind dynamics.
Won't die investment wise i suppose.
But as a semi long term trade, its compelling. Over the next 2-3 years there should be a bump in property, and given ewint has one of the highest eyeballs on it in the investment and property market, it should bode well for the warrants.
Option 1 SELL - you can panic and sell off at a loss
Option 2 HOLD - you know the latest loss was due to timing of handover. Basically, they did not hand over any unit during this latest Q. In coming quarters, there will be exceptionally strong earnings coming in due to hand over of completed units. As investing is forward looking, we should at least hold on to our stocks
Option 3 BUY - Leverage on the price weakness to add more (bearing in mind Brexit still unresolved, don't say I don't warn you)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Icon8888
18,659 posts
Posted by Icon8888 > 2019-06-14 10:16 | Report Abuse
stay happy and positive
dont cry mum cry dad just because price is down
be guided by fundamentals