EAST Community

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Re: EAST Community

Postby stocks hunter » Thu Mar 08, 2018 5:00 pm

ruwa wrote:As of my knowledge if the facilities are obtained by Weligama Hotel Properties Ltd then EAST does not have to settle those facilities.


These liabilities are owned by EAST.

As BW said if the buyer HPL is going to purchase the hotel with these liabilities then we have to estimate that the selling price is a very low one...

B-) B-)

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Re: EAST Community

Postby Blue Whale » Thu Mar 08, 2018 5:42 pm

We don't have the BS of Weligama Hotels but this is how I visualize the whole thing.

East West Engineering Services has been constructing this hotel for the last five years. As the proceeds for construction Weligama Hotels pays to East West Engineering Services and they have recognised it as revenue.Weligama hotels have raised funds by raising borrowings as well as convert the dues to East West Engineering Services to equity. And this is how EAST has got its 72% equity stake.

In light of this we can imagine the BS of Weligama Hotel.
Assets = Land + Hotel + Other Non current assets + WC
Liabilities = Bank Borrowings + short term Borrowings
Equity = EAST 72% + Minority 28% + reserves

Then the hotels value will be it's NAV + A premium for future earnings

We can't accurately estimate this due to lack of info but roughly estimate that it will be higher than the construction cost because the land value should be upgraded due to revaluation effects and the implied value of a completed hotel now in place.

Therefore I estimate that the NAV per share of Weligama Hotel should be at least equal to the cost per share of EAST. in that case the premium for future earnings will make the difference and this is what I included in my scenario analysis as 4, 5 or 6 which incudes the current cost per share + premium.
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Re: EAST Community

Postby Blue Whale » Thu Mar 08, 2018 5:46 pm

Further for settling Borrowings the new investor may bringing some new cash either through rights issue or owner-fund loan. Why EAST is selling now will probably be that they are not in a position to infuse these new funds into the hotel.
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Re: EAST Community

Postby PAT » Fri Mar 09, 2018 1:54 am

Blue Whale wrote:
Cseinvester wrote:bluewhale are you mad... i dont think you are professional trader or investment.when EAST going up promote it. people how can buy every share you ask.see spence good earns poor price.market day by day goin down..you expalin jins good to buy 33 now 25 share price...


This shows your level of understanding on stock market and the contributors of TEC.

I reserve my comments

I have produced information regarding EAST and how the announcement made can impact the EAST share price through scenario analysis. The same way I did for LDEV and JINs. And this is for the betterment of our investing community to be an aid in taking correct decisions.

When I did the same for LDEV very few expressed their knowledge in the same way you are doing now but I believe they all filled their bags later on. Everything else is in history now. :!!


Good call BW ........ :-bd
though, we missed the opportunity as SP advanced more than 25% today itself.......

current price Rs 22/23 seems too risky to enter...... :-?
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Re: EAST Community

Postby NC+ » Fri Mar 09, 2018 7:18 am

Good call BW... :-bd
I got to know that few directors has massively collected before the run...
https://cdn.cse.lk/cmt/upload_report_fi ... 725028.pdf
Look at top 20; (From last Q report)
end of 2016 - 28.35%,
end of 2017 - 93.34%
So hope we can understand whats going on...

EAST2.PNG

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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 7:48 am

Yes NC. I expect more play here and with the sale the EAST group will become a totally different entity.

Considering the nature of transactions happened between East West Engineering Services and Weligama Hotel Properties I can see that EAST was playing the role of Venture Capital company. They have build the business and now selling at a profit. Super.
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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 7:53 am

My only worry is that we could have identify this opportunity much earlier and collect good volumes at 10 or lower had we happened to read the management review in the AR. When I ran through it yesterday I realized that they have implicitly indicated this scenario. Too bad that we missed the early opportunity. Otherwise this could have been a gold mine than JINS as well.
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Re: EAST Community

Postby iF1985 JUNIOR » Fri Mar 09, 2018 10:03 am

Good to see EAST trading@ current price. :D
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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 10:37 am

http://www.ceylontoday.lk/print20170401 ... p?id=42345

East-West Properties PLC yesterday announced that the Company had signed a Letter of Intent to sell the Wijesuriya family-held 71.82 per cent stake in the first international Marriott-managed Sri Lankan entity; Weligama Bay Marriott Resort & Spa to HPL Hotels and Resorts Pte Ltd, to a unit of a Singapore main-board listed company, Hotel Properties Limited (HPL).
A subsidiary of East-West Properties PLC, Weligama Hotel Properties Limited owns the Weligama Bay Marriott Resort & Spa.

According to sources, the negotiating amount is between $60-65 million. Due to speculation of the deal, the share prices of this company sky-rocketed during the past few weeks. However, the official announcement was only made yesterday.
Speaking to Ceylon FT, market participants welcomed the deal and said, "This is a significant deal considering the deteriorating political environment of the country."

The Weligama Hotel Properties Limited has over US$ 50m assets and capitalized Rs 2 billion of interest in loans in the year upto March 2017. Furthermore, it has already issued 10 million ordinary shares by way of private placement. About half the costs incurred in the construction of Weligama Bay Marriott Resort & Spa had been borrowed from the Bank Of Ceylon, according to Company officials.

Ceylon FT earlier exclusively reported that veteran businessman, Nahil Wijesuriya-led, family plans to reduce their stake in the said Company, with a separate listing in the Colombo Stock Exchange listing. Wijesuriya had given a majority of his local businesses, while being heavily involved in businesses in Singapore.
During the post-war period, Wijesuriya sold his Inter-Contiental Hotel which is now known as Kingsbury Hotel to Hayleys, with a massive capital gain.

Consequent to this deal, the Managing Director of East-West Properties PLC , Vijitha Wijesuriya resigned on 20 February.
Company officers said Vijitha Wijesuriya was married to a British citizen and has been living in the UK for the past three months, with a new business assignment.

When CSE market regulators were contacted, an official said they might consider ordering East-West Properties PLC to conduct an internal inquiry regarding the recent unusual share price hike.

HPL Hotels & Resorts recently signed an agreement with BOC to refurbish the original Grand Oriental Hotel (GOH) building to manage it under the Four Seasons Hotel Chain. HPL Hotels & Resorts has 12 properties in the Asia-Pacific and the Indian Ocean, which includes a total of 2,886 rooms.
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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 10:50 am

Weligama Hotel has over USD 50M in assets which turnout to be 7.7Bn :-o

If this is true then assets per share should be 19/-

After deducting the liabilities then what will be the NAV of the company :-?

Looks like the deal price will going to be much higher than what I estimated :-o
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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 11:30 am

I am holding my block like Gold now :x :D
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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 11:35 am

Seems like BW is playing the last samurai role in TEC for EAST.

No body interested after providing this much of information :-o

Its too bad :(
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Re: EAST Community

Postby ruwa » Fri Mar 09, 2018 11:43 am

I made a good profit thanks to your information Blue Whale and i'm truely grateful for your info and effort.
Keep it up

^:)^ ^:)^

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Re: EAST Community

Postby SHARK » Fri Mar 09, 2018 11:44 am

cant touch now afraid
Price is what you pay. Value is what you get.”

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Re: EAST Community

Postby PAT » Fri Mar 09, 2018 11:51 am

Blue Whale wrote:I am holding my block like Gold now :x :D



:-bd
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Re: EAST Community

Postby Blue Whale » Fri Mar 09, 2018 11:55 am

Seems like the few people got into the horse has already got down in the midway. The information (not confirmed officially) suggest that the journey to Badulla is still at Nittambuwa :-?? :-??
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Re: EAST Community

Postby iF1985 JUNIOR » Fri Mar 09, 2018 12:09 pm

:)) :)) .
"When a person with money meets a person with experience, the one with experience ends up with the money and the one with the money leaves with experience" :-!

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Re: EAST Community

Postby Fair investor » Fri Mar 09, 2018 12:13 pm

Blue Whale wrote:Seems like the few people got into the horse has already got down in the midway. The information (not confirmed officially) suggest that the journey to Badulla is still at Nittambuwa :-?? :-??



I also joined from Kaduwela.. Great buy call from BW :D :D

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Re: EAST Community

Postby GB » Fri Mar 09, 2018 12:16 pm

Blue Whale wrote:Seems like the few people got into the horse has already got down in the midway. The information (not confirmed officially) suggest that the journey to Badulla is still at Nittambuwa :-?? :-??

How about the joining at Nittabuwa.. :-\

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Re: EAST Community

Postby Fair investor » Fri Mar 09, 2018 12:20 pm

Bus eka tea bonna navaththana thanadi join wenna :D :D

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Re: EAST Community

Postby PAT » Fri Mar 09, 2018 12:24 pm

Fair investor wrote:Bus eka tea bonna navaththana thanadi join wenna :D :D


Good idea :D

But if the bus not stop for tea ;)
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Re: EAST Community

Postby ruwa » Fri Mar 09, 2018 12:29 pm

Then it should stop to get fuel no...
Then join

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Re: EAST Community

Postby PAT » Fri Mar 09, 2018 12:36 pm

ruwa wrote:Then it should stop to get fuel no...
Then join


B-)
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Re: EAST Community

Postby iF1985 JUNIOR » Fri Mar 09, 2018 12:37 pm

Already stopped in few gas stations, how did you guys missed the opportunities.
"When a person with money meets a person with experience, the one with experience ends up with the money and the one with the money leaves with experience" :-!

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Re: EAST Community

Postby Fair investor » Fri Mar 09, 2018 12:40 pm

PAT wrote:
Fair investor wrote:Bus eka tea bonna navaththana thanadi join wenna :D :D


Good idea :D

But if the bus not stop for tea ;)


Without teat break cant go that much long journey... :D


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