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Elegant Hotels gets the thumbs up from Mr Bearbull in IC magazine & also from me despite latest results
See the results are on EHG website - no RNS here for some reason. Mixed results i would say and dividend expectation reduced to 4p for next year to support capex. Looks in general like the worse exchange rate for UK travellers has hurt them, but they are moving to attract more US visits. I think the dividend cut is actually good news, as will be more sustainable and should result in capex without more debt allowing capital gains. NAV remains at 163p so still value to be had in my view. Will look to add if it drifts down to low 80s
Interesting RNS re Melia approach. I am surprised share price didn't spike a bit on Friday (or did i miss it?) - from a quick google looks like approach was at 110p and has been rejected. I agree given NAV here but usually market would have reacted to re-price this a bit more and could there be further offer / negotiations?? Regardless happy sitting here with a significantly higher NAV than Market Cap, healthy dividend and potential takeover speculation
Yes, the yield is excellent but is that the pay off for being in the hurricane zone. You only have to look how many near misses Barbados has got away with over the last 50-60 years. One day its luck will run out. That 8% yield will shrink pretty fast when its properties are shut for repairs coming up to the crucial winter trading period. I stayed at The House 3 years ago, although the rooms were nice all the public areas especially around the pool were very tired, perhaps they�ve had a makeover since? Daphne�s is overrated and overpriced but then again most Barbadian restaurants are the same.
Always worries me when we see drops of this size with no news... always think someone knows something. But in the absence of any news certainly looks good for a top up. Comfortably in excess of 8% yield is nice too!
Dropping on no news. Barbados seems fine. Opportunity for top up?
This share is one that flies completely under the radar for most private investors. A broker who I even spoke to said the high dividend yield put people off as it was 'to good to be true'. The dividend is covered at least more than 1.5 times paying roughly 8% (10% and higher if you got in a while or go!). Company growing even against backdrop of lower pound. I actually think the company will surprise a lot of people in the coming years once the revenue of new hotels/restaurants comes into play. I also like the fact the company has diversified into different locations making sure they try to pick a further piece of the growing Caribbean tourism trade. Really looking forward to watching this in the coming months/years. DG
Seems that B'dos is Ok, and apart from a 16 surfer dying trying to ride a hurricane induced wave, all else is good. So why a 3% drop today? Seems to me to be a good time to op up even with £1=$1.31. GLA
Bought a holding. Looking to add more as funds become available. After a lot of research I believe this is lowering in risk and I'm very confident for the future growth; the team looks experienced and not to mention Luke Johnson joining the board. Management Contracts seem attractive to me despite no asset value as earnings per share will increase. Marketing advances will diversify clientele nationality and the hotels themselves seem to be run fantastically; especially now with Luke onboard who can improve profitability in the food & beverage sector. There's a lot more I could say about this one but over the next couple of years, i'm really bullish. Can't complain with the dividend either; although i reckon the divi itself is scaring a few people off bc it looks to good to be true! Will see good growth in FY 17 and beyond. GL all, tealo.
NAV still below Market Cap. Quality/Service of hotels seems superb. I'm only 19 and even I can see that! Growth Prospects look strong and can always diversify from UK market clientele without too much struggle due to the great product the company provides in hotels + service. Will definitely be investing here within the next couple of months. Only slight concern is sheer exposure on just the one island of Barbados - in the event of a hurricane etc. Seems like a great long gamer this one. tealo.
Update from June 2017. https://www.***************************/elegant-hotels-group-plc-qa-ceo-sunil-chatrani-half-year-report-lonehg/412731499 GLA
Luke Johnson now appointed Director after buying stake in company,we can expect some action particulary as company share price is moe than 30% below asset value,also pays great dividend
This was the headline of the article below ... market cap of 72M but a balance sheet showing net assets of 105M and making a tidy operating profit. Anyone have any recommendations about these guys? http://www.aol.co.uk/money/2017/05/08/this-small-cap-growth-stock-could-be-undervalued-by-as-much-as-1/
I'm on the Island and the properties in the EHG are busy. No "facts" to support this but an observation on the ground. Added flights from LHR, Manchester and Brum providing good numbers of tourists on the ground. Plenty of Canadians around as well. Let's hope EHG is benefitting. Daphne's was hard to get into.
interesting rise today against a declining market
Happy with what was released this morning. Solid AIM company making a profit and paying extremely juicy dividends approaching 8-10% depending on your buy in is a rare thing. We have managed to provide a solid base and deliver almost like for like results in a year including the acquisition of Waves Hotel & Spa in Barbados and the management contract that we recently signed on a property in Antigua. Both of which have been confirmed by the Directors to increase not only revenues and profit. Share Price to NAV here is a bargain. Have added to my holding here this morning and will look to stake build further as funds become available. Share de-risking all the time here.
Yep Tuesday, but on the 17th Jan.
Well let see how they have got on as big divi expected ?
No news, no volume, big drop. Any ideas why? Happy New Year all - could do with a Barbadian holiday!
"Unfortunately, there have been some losers among this year’s recommendations, including Elegant Hotels, one of our top tips for 2016. Elegant shares were 115p last January. Today they are 80½p. The company owns six luxury hotels in Barbados and 70 per cent of sales come from UK customers. In the run-up to the Brexit referendum – and immediately afterwards – consumer confidence wobbled and costly trips to the Caribbean seemed like an expense too far for many holidaymakers. A weak pound made those holidays even pricier and there were even concerns about the Zika virus, although few cases were reported in Barbados. The group gave two warnings, first admitting that sales would be down for the year to September 2016 and then revealing that revenues would barely change this year either. Predictably, the stock sank. However, there are some encouraging signs on the horizon, particularly the appearance of serial entrepreneur Luke Johnson on the share register. Johnson bought a 10 per cent stake on October 28 and another 2.5 per cent last week. Johnson is known as an astute investor and he is joined on the register by insurer Legal & General and stockbroker Hargreave Hale, which have been buying stock recently. The company has also said it will pay a 7p dividend for the year ending September 30, putting the shares on a yield of more than 9 per cent. Reassuringly, the group owns its hotels, which are valued at more than 184p a share. Midas verdict: Elegant Hotels has had a deeply disappointing year, but there is a new finance director and the growth strategy remains in place. Now is not the time to sell. In fact, today’s low price could even represent a buying opportunity."
Thanks for that - I sold CAKE earlier this year, but got back in recently, and it is on the rise again, until today! Luke has an excellent track record, and, like others, I await his next move, be it on the BOD, or other. Would like to know the occupancy % of the hotels now vs last year(s).
https://www.theguardian.com/business/2015/jun/15/luke-johnson-invests-eclectic-bar-group-executive-chairman-students Have a look at the above re eclectic (now PIER). Has taken a significant stake and then actually used this to change the company's direction with a more than doubling of share price. However Eclectic was a complete basket case and was desperate. I think the question is more how hands on will he be - position on the board, change in strategy etc or just saw this as too cheap an opportunity to miss?
Does anyone consider that a takeover is in the offing? I sense it with the large trades and LJ's holding.