Australian (ASX) Stock Market Forum

CIY - City Pacific

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Nice green day for CIY - up 10% at the moment.

CAn anyone help out with an explanation of why they have gone into PreOpen on my Comsec Pro Trader screen at the mo though? No announcements of trading halts or anything, and there are some major trades appearing on both sides, eg 381 905 shares at 79c and a couple of big buys around the mid 100ks at $1.12.

Cheers
 
Screen now says Adjust and the trades all went through at $1.075 :confused:

Why did this happen in the middle of trading?
 
reece55 said:
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
Click to expand...

Well, I thought you couldn't trust the divy and what do you know - according to the Australian today, looks like they are going to have drip feed that dividend.... That really is taking the "the cheques in the drawer" syndrome to another level...

My brother who is an electrician in the Sunshine Coast in QLD told me yesterday the Company he was working for is going into administration because creditors requested their money back after bad debts and slow customer payments..... Sounds like the property sector in QLD is slowing down rapidly........

Link here

Cheers
 
have read the last 3 pages and looked at a few other sites and yes comsec still have :

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

I suppose they cant change it until the market receives guidance about future forecasts. Their website acknowledges they have had a run on funds and put 180 day halt on investors extracting their money.

Could be a super bargain if we believe management but i might keep looking elsewhere.:cool:
 
countryboy said:
have read the last 3 pages and looked at a few other sites and yes comsec still have :

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

I suppose they cant change it until the market receives guidance about future forecasts. Their website acknowledges they have had a run on funds and put 180 day halt on investors extracting their money.

Could be a super bargain if we believe management but i might keep looking elsewhere.:cool:
Click to expand...

yep cb, even when u get the co's "latest" numbers - yr and 1/2yr reports or 1/4ly if required they are seriously obsolete: but that's how it is. Just one of the problems of doing only fundamental analysis
 
Re: CIY City Pacific First Mortgage Fund

Any ideas about the latest City Pacific proposals announced today on the ASX? They are planning to raise $1billion, and if I understand this correctly, offer us preferred shares in exchange for our units:confused:
 
Re: CIY City Pacific First Mortgage Fund

k.smith said:
Any ideas about the latest City Pacific proposals announced today on the ASX? They are planning to raise $1billion, and if I understand this correctly, offer us preferred shares in exchange for our units:confused:
Click to expand...

From what I understand, if you accept the CPS in exchange for your units you can then trade them on ASX if you want to redeem them. If you are happy continuing to hold your units then CP will continue to pay distributions.

The aim is to provide those unitholders who want to redeem units with a way to do that without the FMF having to force borrowers to repay before their projects are finished as this would reduce the value of those projects and hence the ability of the borrowers to repay.

One assumes that the loans the FMF has outstanding are still good to go and that the only adjustment that will have to be made is the 5% accounting provision that they had in the announcement today.

I don't hold units but if I did I would be hanging on to them rather than going with the CPS. Just my opinion though.
 
jonojpsg......thanks....do units in a trust have more security than preference shares?...what happens when a unit trust fund is "closed"..? If the fund liquidates,or is taken over, where is the better security?
 
What do members of the City Pacific First Mortage Fund think of the proposal to amalgamate the company and the fund, and do away with fixed value units? Has any fund member set up a yahoogroup for City Pacific FMF investors?
 
i jumped into this today, anybody know why price increase? any news?:confused:
any ideas would be good...I sold CIY about 3 months ago..can't seem to find anything on this...ta
 
Thankfully, I have only a small holding in this very troubled company. But it seems that they have have taken back part or whole of a distribution made to me via their DRP last year.

I haven't fully investigated this yet, but is it possible that companies can take back dividends/distributions already made, from shareholders without their specific approval?

Aghast :eek:
 
CIY have put out an announcement today. Apparently they made an "administrative error" in April 2008's allotment of DRP shares and holders received 5 times as many shares as they were entitled to. ie. they were paid 15c/share when it should have been 3c/share.

Now they are taking back 80% of that allotment. They must be kidding. Is this fair or legal?

What about the holders who received their dividend by cheque or credit to their bank accounts and have already spent the money? Will they be asked to pay it back? If not, it seems discriminatory against those holders who chose to receive their dividend by issue of DRP shares, which the company encouraged them to do.

What about the holders who have sold their "excess DRP" shares. Will the new holders be required to surrender the shares back to the company?

This is a weird weird world and it only seems to be getting weirder.:eek:
 
Yelnats,

It's interesting to say the least. Was there an error with those that recieved cash rather than DRP? Perhpas only the DRP had an error so that covers one of your questions.

As to those that have already sold some, well then you could argue that they will just take it out their other holdings. If they have sold the lot that is interesting though.

Let us know what happens. Any news stories for it?
 
prawn_86 said:
Yelnats,

It's interesting to say the least. Was there an error with those that recieved cash rather than DRP? Perhpas only the DRP had an error so that covers one of your questions.

As to those that have already sold some, well then you could argue that they will just take it out their other holdings. If they have sold the lot that is interesting though.

Let us know what happens. Any news stories for it?
Click to expand...

Prawn, Upon reading today's announcement more carefully, they only refer to an error with the DRP payment.

But maybe the same error was also made with the cheque/bank credit payments but they didn't mention it because it would be pointless or too difficult to try to retrieve that money.

Looks like they made a hash of the entire dividend payment as on April 7, 2008 after announcing the 15c dividend, they indicated it would be paid in 5 x 3c instalments at the end of May/June/July/Aug/Sept 2008.

Yet on the other hand in the same ann they said;

Quote
The dividend reinvestment plan (DRP) will still take effect on April 30, 2008 and will apply to the full 15 cents. The shares allotted under the DRP will be at a 2% discount to the volume weighted average price over the five days following the ‘ex-dividend’ date and will not be subject to brokerage, commission or stamp duty costs.
Unquote

So I'm still confused and will investigate further.

What a stuff-up!!!
 
YELNATS said:
Prawn, Upon reading today's announcement more carefully, they only refer to an error with the DRP payment.

But maybe the same error was also made with the cheque/bank credit payments but they didn't mention it because it would be pointless or too difficult to try to retrieve that money.

Looks like they made a hash of the entire dividend payment as on April 7, 2008 after announcing the 15c dividend, they indicated it would be paid in 5 x 3c instalments at the end of May/June/July/Aug/Sept 2008.

Yet on the other hand in the same ann they said;

Quote
The dividend reinvestment plan (DRP) will still take effect on April 30, 2008 and will apply to the full 15 cents. The shares allotted under the DRP will be at a 2% discount to the volume weighted average price over the five days following the ‘ex-dividend’ date and will not be subject to brokerage, commission or stamp duty costs.
Unquote

So I'm still confused and will investigate further.

What a stuff-up!!!
Click to expand...


I have investigated further and have found a trail of communications to shareholders on this matter, culminating in their letter of 23 March 2009, resulting in only 3c of the dividend being honoured with the remaining 12c being revoked or cancelled.

Apparently, due to an "administrative error" the DRP shareholders incorrectly received the full 15c on 30 April 2008 whereas the holders paid by cheque or credited to their bank accounts only received 3c.

I hardly think this was an "administrative error" when you consider their statement on 7 April 2008:

Quote
The dividend reinvestment plan (DRP) will still take effect on April 30, 2008 and will apply to the full 15 cents(my bolding/underlining). The shares allotted under the DRP will be at a 2% discount to the volume weighted average price over the five days following the ‘ex-dividend’ date and will not be subject to brokerage, commission or stamp duty costs.
Unquote

It also makes you wonder about those holders who sold all their shares including their DRP entitlements. Will they have to refund the monies to CIY? What chance will they have of getting any/most of this money back? Is this fair to holders who received DRP shares who remained loyal to the company and did not sell their holdings?

I have notified my accountant of this development which now makes the 2007-2008 dividend results for my SMSF incorrect. I am awaiting his advice on how to handle this issue.

I wonder if anyone on ASF has been similarly affected by this decision by CIY to revoke and/or retrieve dividends, or by a similar decision by any other failed or failing company?
 
Anyone else get the feeling that old City could represent a good trading opportunity at the moment.

After reading the quarterly it seems they are in desperate need of cash.

The volatility is just so enticing!
 

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