CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

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CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Wed Sep 28, 2016 11:27 pm

I give below some facts of above shares.............

CITH IPO Price 20Rs & CMP is 14.50 Has a Value closer to 21Rs and 18Rs as opposed to 24 Ref Price.
CITW IPO Price 12.50 CMP 5.70
CITK IPO Price 17.50 CMP 3.50

The Price 24 is a premium 20% off its value in my opinion.

As per Group Restructure

5 Shares of CITH for Every 12 Shares of CITW

5 Shares of CITH for Every 12 Shares of CITK
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Wed Sep 28, 2016 11:34 pm

CITK IPO Price 17.50*12=210Rs/20Rs CITH Current Value (+/-10%) = Min 10~12Shares of CITH and Not 5Shares.
CITW IPO Price 12.50*12=150Rs/20Rs CITH Current Value (+/-10%) = Min 7~8Shares of CITH and Not 5Shares.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Wed Sep 28, 2016 11:38 pm

2nd Scenario irrespective of CITH Value 20Rs/IPO Price 20Rs going by the Last Traded price/CMP 14.50

CITK IPO Price 17.50*12=210Rs/14.50Rs CITH Current Value = Min 14Shares of CITH and Not 5Shares.
CITW IPO Price 12.50*12=150Rs/14.50Rs CITH Current Value = Min 10Shares of CITH and Not 5Shares.


CITK IPO Price 17.50*12=210Rs/24Rs CITH Current Value = Min 9Shares of CITH and Not 5Shares.
CITW IPO Price 12.50*12=150Rs/24Rs CITH Current Value = Min 6Shares of CITH and Not 5Shares.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Wed Sep 28, 2016 11:39 pm

In my opinion SEC should demand CITH to enhance the deal for the Retailers get a better deal, forget the eroded confidence over so many years of holding CITK and CITW and loss of opportunity cost
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Wed Sep 28, 2016 11:48 pm

CITK CMP 3.50*12=42Rs/20Rs CITH Current Value (+/-10%) = Min 2Shares of CITH and Getting 5Shares. (A Good Deal)
CITW CMP 5.70*12=68.40Rs/20Rs CITH Current Value (+/-10%) = Min 3Shares of CITH and Getting 5Shares. (A Good Deal)

CITK CMP 3.50*12=42Rs/14.50Rs CITH CMP = Min 3Shares of CITH and Getting 5Shares. (A Good Deal)
CITW CMP 5.70*12=68.40Rs/14.50Rs CITH CMP = Min 5Shares of CITH and Getting 5Shares. (A Fair Deal)

CITK CMP 3.50*12=42Rs/24Rs CITH Current Value (+/-10%) = Min 2Shares of CITH and Getting 5Shares. (A Good Deal)
CITW CMP 5.70*12=68.40Rs/24Rs CITH Current Value (+/-10%) = Min 3Shares of CITH and Getting 5Shares. (A Good Deal)
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Wed Sep 28, 2016 11:53 pm

Technically CITH liquidity increases with the Private Placement here is the Catch 22 Situation, A share trading @14.50 will be pushed to 24Rs where as its value for me is around Max20 or 18Rs.
CITH price stands to appreciate by min 24% TO 65% In my view.
Anticipating this Gap those holding CITH shareholders will be happy in the S/T provided there is liquidity.

Above analysis for the educational purposes and not a recommendation for buy, sell or hold

Discl: Not Holding CITH/CITK or CITW
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 1:13 pm

SHARK wrote:In my opinion SEC should demand CITH to enhance the deal for the Retailers get a better deal, forget the eroded confidence over so many years of holding CITK and CITW and loss of opportunity cost

Kohomada Kema ....... :(
SEC Over to you.... *-:)
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 1:19 pm

SHARK wrote:CITK IPO Price 17.50*12=210Rs/20Rs CITH Current Value (+/-10%) = Min 10~12Shares of CITH and Not 5Shares.
CITW IPO Price 12.50*12=150Rs/20Rs CITH Current Value (+/-10%) = Min 7~8Shares of CITH and Not 5Shares.


SEC should ask CITH to reconsider the valuation and resubmit the proposal for Retailers sake, as the only document they went by was IPO prospectus.
This is a shabby deal by the BoD :-w
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 1:22 pm

Do you trust this BoD to enhance value of share holders.........
Can you trust their sugar coated valuations
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 2:13 pm

SHARK wrote:Technically CITH liquidity increases with the Private Placement here is the Catch 22 Situation, A share trading @14.50 will be pushed to 24Rs where as its value for me is around Max20 or 18Rs.
CITH price stands to appreciate by min 24% TO 65% In my view.
Anticipating this Gap those holding CITH shareholders will be happy in the S/T provided there is liquidity.

Above analysis for the educational purposes and not a recommendation for buy, sell or hold

Discl: Not Holding CITH/CITK or CITW

Price appreciated to 24% (hit 18rs after 2 days of this posts) did not appreciate to 24Rs or 65% from 14.50 :)

The catch 22 situation comes in (correct me if i am wrong) lets say you buy 100.000 shares of CITW @5.00 Your Cost is Rs 500.000, when this is converted to CITH 100.000/12x5 = 41.666 shares of CITH now. Rs 500.000/41666 = 12Rs per share of CITH to you.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 2:31 pm

The CMP of CITH should correct itself to 12 and then later towards 10Rs (which is valued @24 by NDB Investment Bank for Group Restructure purposes)
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 2:33 pm

If i apply same scenario with CITK
we buy @4Rs 100.000 shares Total Investment is 400.000.
400.000/41666 = 9.60 = CITH
In this case Buying CITK would be preferred over CITW
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 2:48 pm

If anyone had been hoping Kalpitiya and Waskaduwa CITRUS would have been a GAME changer by visiting those locations and updating us with their construction sites

Your Losses would be as follows :
CITW 100.000 Shares @ 12.50 = Investment Cost 1.250.000/41.666 Shares as per Restructure (5 For 12)= 30Rs New Share of CITH (Trading Price 14Rs with tendeny to go to 10Rs)
CITK 100.000 Shares @ 17.50 = Investment Cost 1.750.000/41.666 Shares as per Restructure (5 For 12)= 42Rs New Share of CITH (Trading Price 14Rs with tendeny to go to 10Rs)

The Draw Down is 300 to 400 times +
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 2:58 pm

The Overall Loss is 1.7 Billion wiped off from CITW (84.061.215*20Rs)
The Overall Loss is 2.1 Billion wiped off from CITK (67.166.670*32Rs)

Total Unrealised Loss expected 3.8 Billion

Please correct me if i am wrong :)
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 3:01 pm

Can we draw parallels to some of the failed listed entities ............

what would be its chances for revival ..... once again without any strings attached to such as Rights Issues etc.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 3:07 pm

How many years the original share holder need to wait, if not in his lifetime, we can ask those to pass it onto next couple of generations like a dowry :D But no immediate value to sell at a profit :)
if you are lucky and hope and pray there will be no other tsunami from the opposite side next time around.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 3:12 pm

These are the Crookes shouting day in day out in front of the media to cover their sins and faults :)
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Nov 05, 2016 3:16 pm

As a CHART guy this is where Stop losses are important, and one should not blindly follow fundamental factors alone.
when fundamentals are deteriorating, we have to exit ....... with accepting some losses and move on
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sat Jun 10, 2017 3:09 pm

Please read along this thread for all decisions pertaining ongoing restructure.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby Value » Sat Jun 10, 2017 3:22 pm

I read all the posts carefully. Super Shark.

I never knew this thread existed.

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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby topcat » Sat Jun 10, 2017 3:31 pm

Thanks value for bringing this again
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby PATHFINDER » Sat Jun 10, 2017 7:25 pm

Let me add my two cents here,

After the restructuring process CITK is ceased to exist.In other words all assets of CITK belongs to CITH.

CITK has 40.4 Mil of CLND at a cost about 43 per share.
This stake is mentioned in CITK latest quarter as investments in associates under non current assets.
After restructuring IF CITH able to sell CLND stake they got from CITK at a break even price,they get a good amount of cash about 1.7 Bil

The biggest problem CITW has is high finance cost which hamper their bottom line.

If CITH can liquidize all assets of CITK and pay off all debt and upgrade their existing hotels including Citrus Passikuda,CITH will become one of the best in the sector.So does REEF.

I do not have inside info, All this is a possible scenario.
Also I do not hold any share of the group as of today.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby Value » Sat Jun 10, 2017 8:30 pm

That's a good insight PF.

But what CITH is going to pay (implied) in order to take full control of those two companies doesn't look attractive.
CITK and CITW.png
Once these companies are acquired, the N/A value of CITH per share will decline a bit,
CITH.jpg
So any liquidation of the subsidiaries acquired will not help immediately.

Plus the two subsidiaries that will be acquired are making losses currently, so positive contribution from them to CITH's bottom line is not likely in the immediate future.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby SHARK » Sun Jun 11, 2017 6:00 am

What I feel is that they divest part of the shares to prospective LT strategic foreign investor in hospitality sector, and then go for an attractive RIGHT ISSUE to lessen the finance cost burden.
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Re: CITK, CITW and CITH A Raw Deal or Not For respective Share Holders

Postby Blue Whale » Fri Jun 16, 2017 11:20 am

All three shares are moving.
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