An entry position at his level is the contrarian move. Folks forget that NTE has no long-term debt, which is key in sustaining a real estate venture, among a lot of other things. Valuation is one thing, but cash flow is priceless. JMHO
He projected those revenues based on a contract that the reneged on...
Are you really that dense or are you just pretending to be clueless.
You have to consider that the company has zero experience as a landlord or real estate developer, as well as the time and money/investment it will take to achieve their goals. I think you are getting a market that is justifiably dubious, as well as plenty of people who don't feel like waiting 4-5 years in hopes of seeing this play out. There are a lot of negative things that could happen in China that could drastically alter their plans going forward.
All of this is to say that it's not quite the "no brainer" that it appears to be. Yes, they have almost $6 in cash on their balance sheet, but they will soon have no cash flow from operations, so their construction plans have to come from their cash + credit lines. Both of those will drain the cash from the balance sheet, with nothing to replenish their cash balance for at least 4+ years.
The real estate plan just got simpler. They no longer have the expense of relocating an electronics factory.
As of Dec 31 cash balance was $270.3 million on roughly 45.3 million shares. If my numbers are correct that is $5.97 cash per share. Subtract the cash and that means the market thinks the entire business is a losing proposition. At a share price below $6 the market is not optimistic about the future of NTE.
I would advice you to better figure out a discount rate to apply to any valuation given the multiple risks associated with the transformation of the company. Clearly I wouldn't want to own the stock here as it looks like dead money (at best) for several years - what makes the shares look uninvestable for now
Now, it is best time to discuss the land value, since we are going to hold the stock of the property manager very soon.
As for the 566,100 square feet (52.592 square meter) in Gushu, Shenzhen, from August 5, 2013 press release, it mentioned the adjacent land fetched at $20,000 per square meter. It implied the land of Gushu, Shenzhen is worthy of over $1 billion.
As for 1.2 million square feet in Guangming, Shenzhen, I have no idea how much it is worthy of.
Anyone has the idea of how much they are worthy of?
Having owned shares in this company off and on since 1997, I know the management of this Company including the Board of Directors.
Why do I waste my talking to a child ?
Grow up. I don't expect non public disclosures. Put down the kool aid and think for yourself. I have no problems knowing more about the company by doing my due diligence.
Keep learning through the chat boards. Yea!!!!
One of my biggest fears with NTE's real estate is the falling of value. This is definitely a good sign. Thanks for the update.
And that is as it should be. What makes you think you are special and deserving of knowledge about NTE that other investors should not get at the same time.
I believe your tag name speaks loads about who you think you are. Self-esteem????.
From South China Morning Post:
Silverstein Properties, developer of the World Trade Centre towers in New York, bought a 51,416 square metre lot in Qianhai yesterday for a mixed-use project for 13.4 billion yuan (HK$17.1 billion), pushing the price of local land to a record.
This is the sixth parcel sold in six months through public tenders, raking in a total of 40.7 billion yuan for the 15 square kilometre special zone, created in 2010 to test the nation's yuan liberalisation and financial reforms.
Qianhai is now facing competition from Shanghai and 10 other special zones across the mainland.
"It's a pretty fair market price, although it is much cheaper compared with land price for office buildings in Hong Kong," said Joseph Tsang, a managing director at global property consultancy Jones Lang LaSalle in Hong Kong.
It’s a pretty fair price, although it is much cheaper compared with … Hong Kong
JOSEPH TSANG, JONES LANG LASALLE
"Qianhai is a development focus for the mainland and has a very good outlook as more financial companies move their back offices there."
The price tag of 28,113 yuan per square metre is 74 per cent higher than the 16,153 yuan per square metre paid in November last year by Shimao Property for a commercial office development and topped the 21,669 yuan per square metre by China Resources Land for a commercial site in Qianhai in August.
I have talked to Kevin several times in length. He is very polite but not going to shed any new light on the company or direction unless it is made public by a very low profile Mr Koo and his board.
I called IR to complain that I could not understand M. Koo and received at least twenty minutes of time from Mr. McGrath who educated me as to what would be taking place for the rest of 2013 and all that he said concerning the loss of contracts at the end of the third quarter and the elimination or a nominal dividend at the beginning of 2014 have taken place. This call was made in June 2013. I have said it several times IR is there to help you. Please call him (Mr. McGrath) after the quarters announcement if you need any information. I hardly think Mr. Koo pays any attention to this board but if he did, broken English and all, I would be one happy shareholder.
Last I checked they have an English speaking IR and enough money to rent an interpreter. Why do you defend the CEO? Have you seen a good return on your investment genius? Is it wrong to ask questions? Pretty sad that a businessman of his stature cannot man up to analysts and shareholders.
Your arrogant attitude and negative contribution requires me to state NTE does not need your kind of Day Trader, certainly not an INVESTOR!!!