There's simply no good news or momentum at the moment.
OCV is facing a winding up order, and a high profile property deal in Sydney (nothing to do with CIY) has finally been done for 25% less than was thought it could achieve last year.
Property is being re-evaluated up and down the country - and it is very much a buyer's market.
CIY told us earlier this year hundreds of millions was coming back in the door, and yet the fund only had 60 M of its debt cleared. We can only hope that we're seeing slight delays to the original timetable, and not a collapse in prices below the LVR.
The market is currently pricing CIY at a market cap of around 90 M. That seems to suggest a very hefty re-rating of CIY's assets and a massively discounted income. CIY's assets aren't dogs and would sell - it's a case of for what price?
In terms of the FMF - money is loaned and turned over fairly quickly, so in my mind, newly loaned money is done so based on new market conditions - which should help reduce risk of loss. I know for a fact that developers are still looking to commence projects and are asking to borrow money.
I personally believe CIY will pull through. It's going to be a dog of a stock for possibly years though.
A 90 M market cap just floors me though...I'm happy for others to try and explain that price to me.
CIY Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
