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CIY - City Pacific

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Despite recent reassurance from management that they're not overgeared, this one has been severely sold off over the last couple of days. Either some skeletons are waiting to come out, or a good candidate for a bounce trade
 
rub92me said:
Despite recent reassurance from management that they're not overgeared, this one has been severely sold off over the last couple of days. Either some skeletons are waiting to come out, or a good candidate for a bounce trade
Click to expand...

Down 50% today so far ... to 0.96c per share.

Must be some scary skeletons rattling about .....



AJ

(Disclaimer: I don't have / have never held this stock)
 
In pre-NR at the moment, probably a 'please explain' from the ASX. A 'we know nothing' response could see this come back. I may hop on depending on what unfolds. Big buyers stepped in around the 90 cents mark, so probably a stop just below that.
 
Does anyone find it completely odd that CIY goes into trading halt to respond to an ASX query........... I mean really, I don't think that responding to an ASX query means you can suspend the trading in your stock.....

CIY has definitely fallen off the cliff, I was interested in a short position after the announcement of the reclassification of their debt position, but just never got around to it.... boy, has it moved downwards quickly.......

This stock has been such a great little yield play for ages and just like the rest of our smaller boutique financials, it seems it was all too good to be true.... What is lurking in this one me wonders....

Cheers
 

Yeah, I think they got too nervous to announce the bad news!


Date: 4/3/2008
Author: Scott Rochfort
Source: The Age --- Page: B5
City Pacific shares fell $A0.53 to $A1.92 on 3 March 2008 after a second set offirst-half financial results were released by the company. Current liabilities,excluding debts from its largest unlisted mortgage fund, increased from $A126.5min the original accounts to $A156m. The company refused to comment on a mediareport that disclosed the City Pacific First Mortgage Fund has to repay a $A240mdebt facility with the Commonwealth Bank of Australia by the end of May 2008.City Pacific no longer has any financial exposure to the fund afterdeconsolidating it from its accounts in late 2007

Date: 3/3/2008
Author: Scott Rochfort
Source: The Age --- Page: B1
Brisbane-based property group City Pacific has released revised results for thefirst half of 2007-08. The accounts show a significant rise in thecompany's short-term debt. City Pacific's large unlisted mortgage fundwill have to clear a $A240m debt facility with the Commonwealth Bank by the endof May 2008. The facility was increased from $A150m in September 2007. The fundwas removed from the group's accounts at the end of 2007. The new accountsshow an increase in City Pacific's current liabilities, excluding the debtsof the mortgage fund, from $A126.5m to $A156m. KPMG Australia has noted that itsreview of the accounts is not an audit

Thx

MS
 

If it smell like a cockroach, walk like a cockroach and it hits the radio air wave yesterday to suck in mum and dad investor to invest in its high yield trust then it has done a Westpoint

http://business.theage.com.au/by-all-accounts-city-pacific-is-in-trouble/20080304-1wuw.html
 

roland - I hope you held off on these... just another example of what faith shareholders or potential shareholders can place on "inspiring and upbeat company newsletters" these days.

Aka VRE, which after the same sort of ploy also bit a few of us in da-bum....


AJ
 
explod said:
On my trading screen it says supended. Does this mean the party is over for City Pacific and the administrators in now ?
Click to expand...

Not at all explod, if you read their latest announcement, they are in talks with several other parties re selling off some of their Gold Coast assets which is obviously a significant transaction and as such their shares are suspended until those talks are finalised one way or the other.

I don't think City Pacific are heading for the scrap heap, they have some issues to deal with but also have some very attractive projects running which are providing good income. Just have to wait and see how it all pans out I guess Hopefully they don't have to sell all those good projects to lower their debt!!

Disc: I hold
 
I had a good look at their Martha Cove project on the Mornington Peninsula just outside Melbourne at Christmas. Very impressive. I have faith in CIY and their management.

PS. Good to see CIY is taking legal action against Mr Michael West,
the scurrilous professional downramping journalist plus the publications he writes for.
 
Hip hip hooray - the situation has been clarified, although nothing really that wasn't known before apart from sale of Townsville development. Hopefully, especially given the upcoming dividend of 15c in April, this will see more realistic valuations again. At least one would imagine that some interest will be shown in an interim dividend of about 11% !! I know I am
 
LOL...

I love it when you look at commsec and see these sort of figures:

Dividend yield 46.2%
Franking 100%
Dividend Stability 100%

Somehow i don't think so now for CIY :::
 
JTLP said:
LOL...

I love it when you look at commsec and see these sort of figures:

Dividend yield 46.2%
Franking 100%
Dividend Stability 100%

Somehow i don't think so now for CIY :::
Click to expand...

Why not? There is little reason to think that CIY can't continue to improve on their profits - they have done this consistently over the last four or five years. Assuming that people who have the money are going to continue buying prime real estate properties such as the ones that CIY develop and finance, which they most assuredly will, then CIY should be able to maintain/improve their profits and their dividends. The only reason the figures look skewed is because their SP has been unnecessarily hammered.

Their latest releases say nothing about any change to forecasts for FY profit or interim dividend payment.
 
Dividend Type ....Cents Per Share... Franked %... Ex-Div Date ....Pay Date
Interim.................... 15.00............. 100 ...........07 Apr, 08.... 30 Apr, 08

and wait fer it-------today's shareprice down to 84c but recovering somewhat
 
treefrog said:
Dividend Type ....Cents Per Share... Franked %... Ex-Div Date ....Pay Date
Interim.................... 15.00............. 100 ...........07 Apr, 08.... 30 Apr, 08

and wait fer it-------today's shareprice down to 84c but recovering somewhat
Click to expand...

So CIY have no plans to abandon the dividend/reduce it significantly since these latest developments?

You could make a mean killing if that is the case...but i am a sceptic and believe there is more to it...can anyone confirm?
 
JTLP said:
So CIY have no plans to abandon the dividend/reduce it significantly since these latest developments?

You could make a mean killing if that is the case...but i am a sceptic and believe there is more to it...can anyone confirm?
Click to expand...

If enough gamblers piled into (raided) the stock now to ostensibly reap a huge dividend windfall, wouldn't the massive payout (as the % currently stands) put CIY further in the deeps???
 
Aussiejeff said:
If enough gamblers piled into (raided) the stock now to ostensibly reap a huge dividend windfall, wouldn't the massive payout (as the % currently stands) put CIY further in the deeps???
Click to expand...


Unless they issue more shares the amount they pay out for D/Es isn't gong to change no matter what the share price is. The D/E is paid out per share, the actual share price has no bearing on how much the company pays out in D/Es.
 
Sheesh...

Gonna make myself a sweet 51.7% fully franked divi off CIY the way things are looking :

I'm gonna say it for the thousandth time...has the intermin dividend declared changed at all (ala CCP) or am I right in assuming that if you took COB figures it is a 51.7% yield? Does it state anywhere in the presentation divi declared/stability?

 

Not sure where you get 51.7%..... I have 15/7*10 = 21.42/89 = 24.1%

There are reports that contractors on their developments haven't been paid in about four months, so it would seem a few cheques are sitting the MD's drawer???? See below:

Fortress Investment Group has invested $A100 million in City Pacific's First Mortgage Fund. Fortress demanded the repayment of a $A150 million loan to MFS early in 2008, increasing pressure on the company to reduce debt through the sale of assets. City Pacific shares closed down 11 per cent at $A0.89 on 17March 2008, after contractors at the company's marina development claimed they had not been paid in over four months. City Pacific must reduce a $A240million debt facility to the Commonwealth Bank by the end of March and repay the balance by the end of May...

Given that the ex divy date is in April and the Gold Coast real estate market is feeling the heat, it wouldn't be a bet I would be taking......

Cheers
 
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