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third....and no vascular here !!!!
Personally, I sold out the morning of the RNS. My rationale was that I was willing to forsake the penny underneath the offer price that I received in order to realise my substantial profit (albeit on a modest holding) and top up some other holdings that I believe are due positive news. Incidentally, I have held PHD, which is a company going through a bid situation, although no formal offer has been made public. This has been a process of a few months, so this has possibly influenced my decision to realise profit here as soon as available. However, it may well transpire that a second offer is forthcoming, and a greater price becomes available for anyone still holding. In that case, I would have sold too early, but as I have a business in Barbados that is aimed at tourists, I would welcome the further reassurance of confidence in the industry. No advice intended, and good luck to anyone holding
So what happens now?(sorry for my ignorance) I only have a few shares here, but will have done alright out of this. When is the deal likely to complete? Is it fairly likely it will complete? What do I need to do, just wait and at some point the ehg shares will disappear from my account and cash will be there instead?
has anyone sold out yet? I am undecided as to whether to wait for the completion or to simply get out now. Bird in the hand and all that... I was waiting for the offer timetable to make a decision but this seems to be taking sometime. The only upside seems to be another bidder coming out of the woodwork but not sure how likely this is.
Yes, steady and dull; just what I like to see. I agree with your thoughts on the NAV, this is more dependent on market trends, as 'heads on beds' is the name of the game. No good having prime real estate if you can't fill it up. As such, a certain level of expenditure is required on keeping assets attractive and functioning. Thankfully there is a very low hurricane risk due to geographic position of Barbados. I think.the last 2 years have been weathered very well by ehg and Barbados tourism in general. With a current push by their government to nurture small business enterprise, this can only improve the island atmosphere for tourism.
Seems borne out Augustus,
nothing exciting, but a good steady performance with a decent (and now realistic) dividend for the share price..
I'm not convinced the NAV will add much - it may well always trade like this (as does say PPH), it's fairly theoretical and is often a hungry consumer of money if your assets get tired and old, whatever the property value + however justified or not will carry a 'foreign' risk.
As1983 I also added today on good results. I know that the island has its majority of tourism come from UK. Sterling weakness will have an impact, that is a fair point. But a lot of the UK tourism comes from very wealthy individuals, the kind of people that will hedge currency weakness. So it won't be as hard hit as a more working class destination would be in times of economic difficulty.
Good results and decent dividend again. Still think the upside here remains the NAV which is >150p per share. Took opportunity to top up some more. My concern around UK travellers seems more than offset by increase in US visitors.
GL all invested here
Funki, I have no interest in where you have been invited. It's a logical fallacy to imply that it adds credence to your perception. I live and work in Barbados for much of the year. I will acknowledge that tourism has been slow of late. That's as far as I would go on the matter.
Augustus - if I write something, it’s because I believe it to be true, based on fact, based on experiencing the said situation personally. You’re calling me a liar if you flatly say what I reported as being “not true”. I am one of a number of people lucky enough to have been invited to the Prime Ministers residence in recognition of the number of times I visit the island (x25 for afternoon tea, 50+ for dinner) and what I stated here on this bulletin board is what I stated there. Maybe you should speak with the minister of tourism about the subject like I did?
Funki, to describe Barbados as deserted outside of peak time is disingenuous. I have spent a substantial amount of 'off-peak' time there and what you say is not true.
There are tourist numbers produced, they highlight the number of visitors arriving each year and breakdown by nationality. They do not include anyone arriving via cruise ship as the figures are calculated on arrivals at the airport. While these figures would not relate to any hotel stays, it should be noted that there is a contribution to.the economy from such arrivals. It's a Google search away.
The majority of the property portfolio is in Barbados, they have one property in st.Lucia and one in Antigua. They have bought up prime real estate on the West coast of Barbados and that will stand them in good stead in the medium long term. They are however, facing increased completion from Sandals who are developing their second resort on the island, that will put pressure on Elegant to “up their game” and make significant investment in their somewhat “tired” hotels. This company has no existential threats in my opinion, they will just have to lay out considerable sums to futureproof their standing on the island. This may impact the current and future yield, and provide a drag on the share price. All in all though, I’d say any money invested in here is safe. There’s always the possibility of a takeover, but I believe the owners are in it for the long haul and would reject any approach. Ps, currently sat at the bar in one of their hotels enjoying paradise personified.
Interesting insight Funki - are you aware of any way of getting a firmer view on this i.e. are there tourist numbers produced. Holder here and as you mention think the NAV is main reason for holding and wasn't aware that island is quiet. Thanks for the info
It’s all very well having a perceived Net Asset Value but when your hotels are all but empty, you ain’t covering your costs. Have any of your been to Barbados recently? Apart from peak times of the year, the beaches and hotels are deserted. Speak to the locals, they’ll tell you how quiet the island is, they’re begging for the tourists to return because currently they are being laid off. Until brexit is finalised, (which now may be another year!), the sp of this company is likely to drift even lower.
I might have to sell a few shares to cover losses elsewhere. Luke
Main tourism in BBD is UK, Canada and USA. It's a place where the rich and super rich spend winter. As such, it's hedged against currency weakness to.an extent, because the usual demographic are not as affected by such things. Not to say it won't impact, but it won't be impacted as much as, for instance, Spain or Portugal.
Fwiw I think that the current weakness is based on perception of the new 'tourism taxes' introduced by the newly elected government. This will be balanced out in time by the introduction of pro homosexual policies that attract the pink pound to.the island as a Caribbean destination that is way more welcoming to homosexual couples than many other islands. In case you don't know, the new Barbadian prime minister is a lesbian, the island has recently had its first gay pride and it's assumed that gay marriage is on the cards.
I am a holder here and not sure why it is continuing to fall. I guess i need to do some more research but my concern is that the dollar is putting brits off what are reasonably pricey holidays (also good summer in UK may have impacted). May not have anything to do with it if most customers are from the states but i am not sure where customers come from. Agree NAV here is main reason to keep faith, dividend also good, was cut last year to help fund capex which in my mind is short term pain for long term gain. If it dips under 70 will consider adding
My purchase of 2500 is shown as sale. Good for me. If it comes down to 68 will add. Can anyone explain why it keeps going down?
Exactly the reason to hold. Don't let a SP fool you - in time true value will be realised. Solely from an asset play point of view it is attractive hence my patience - just a bonus to have a slowly improving balance sheet / business coming with it.
I'm sitting tight.
Barbados will hold its general election in a couple of weeks, hopefully we will get a competent government to reverse the years of damage done by the clowns in power.
Simon Thompson sees 'potential upside' and takeover possibility. Posted online today.
The volume of buys is not reflected in the transaction list - I know they do not know when they are buys and sells at times, but the volume is BIG and they look like buys to me at 90p. Views?