SDG (ASX) Sunland LTD to buyback &amp; cancel 15.000.000 shares

Originally posted by sall123: ↑

If Sunland's were not performing well, they would not be buying back shares. This will rise to $2 once again. I have met with the directors and they are a good, honest and humble bunch.

If you believe property will cash, by all means exit the stock but many people have forecasted this for ages and have not go it right. I'm not saying property will cash or wont crash, I am saying that it is impossible to determine when/if this will occur and therefore it is a fruitless exercise to base your investment decision on this.

For me, its all about long term sustainability and Sunland's disciplined capital management initiatives will allow it to survive if a property crash does occur.

Share price is a significant discount to NTA. Buyback will increase this further. Debt is low. I am a buyer and have taken advantage of the depressed price in January.

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I am long on this and have been for many years

In my view the buyback was a God sent for shareholders like me, which it effectively put a floor on the SP so it wont slide further below to uncharted territories and make this co ripped for the vultures, short sellers & become a takeover target beyond which since the announcement we haven't seen much movement in SP and that is mainly due to general uncertainty in property sector.

In my view ALP win should help the SP since any changes to negative gearing would likely to only benefit SDG as investors flock to buy new properties only and guess what... SDG only sells new properties irrespective of buyers being investors or owner occupiers.

So Jeff is right, sellers can use the opportunity to sell as the company is in no big rush to pay any more for the shares during the buy back than it absolutely has to if necessary. So unless there is a takeover offer which I wouldn't rule it out given the present NTA - I cant see a SP getting close to even 80% of NTA any time soon.

You are right also that at least mathematically there is no down side to buy these shares - SDG has the lowest debt ratio than any other property group and the SP is trading at significant discount to NTA; they have a large cash reserve with plenty in un-drawn credit facility so I woudn't have expected the SP going any lower than it is now or at all - and if it does most likely they do more buy backs!

I would like to buy more but as I said I am long and would probably prefer to sell some of my portfolio if it hits 1.87 -1.89 for the purpose of diversification only and nothing else.