before we all jump on the SDG bandwagon, just thought i'd let everyone know it got downgraded this morning.
SDG SUNLAND GROUP LIMITED Real Estate Overnight Price: $0.56 RBS Australia rates SDG as Downgrade to Hold from Buy - It goes without saying management's latest announcements contained pure disappointment. Not only has the company been forced to take further provisioning against its Dubai and Australian portfolios, the final dividend was scrapped too.
The broker has responded with a recommendation cut to Hold. Price target has been cut to 54c (apparently from 81c though we still had $1.10).
There are still some positives, the broker points out, as the balance sheet remains strong, cash on hand is $100m plus a buy-back has been flagged.
Target price is $0.54 Current Price is $0.56 Difference:($0.02) - (brackets indicate current price is over target). If SDG meets the RBS Australia target it will return approximately - 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June. RBS Australia forecasts a full year FY09 dividend of 3.00 cents and EPS of 6.14 cents. At the last closing share price the estimated dividend yield is 5.41%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.04.
