Did some checking last week. The inventory in CEG's balance sheet is valued at cost. The market value of some of the properties would now be considerably more than when originally purchased. The company gave an indication that the market value of the inventory would be around $300m, as opposed to around $160m in the balance sheet.
Even taking a fairly conservative approach to valuing the land held by CEG would see the NTA double to above $2 per share instead of around $1 reported.
Also the level of debt looks very reasonable when using market value.
There is a very comprehensive presentation of CEG on BRR:
http://www.brr.com.au/event/36377
It seems part of the reason for closing the Rapid build plant now is because they now have some completed spec-houses and some being completed which they will sell during the second half. This will give them income with much lower expenses than in the first half. When the plant re-opens, they intend to build to order, not in advance.
The large sellers appear to be finished, or just taking a holiday today.
This is not a financial engineering company which has flourished by simply upgrading the price of assets held, however it is now being regarded like one.
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