Don’t listen to management. They are selling us out cheaply.
All trends shows Japan’s real estate price is likely to rise by 10% over the next 18 months
If you look at the recent end of financial year presentation, a rise of 5% in real estate price will bring NTA to $6.. imagine how much a 10% price rise will add value to the stock.
Why are we selling out at $1.50 when potentially we can get $6 for this stock.
Management was able to negotiate refinancing in much tougher time, during a financial crisis.. So why can’t they do it again now. In the current environment Japanese banks are willing to negotiate good deals because they know GJT have good assets and they also know real estate prices are going to rise.
Even if the senior loan expire in march next year.. stalling them with paperworks.. the earliest the bank can sell the assets won’t be until the second half of 2014. By which time, the asset would have risen 5-10%.. The bank will not sell these asset cheap, they are in no hurry to claim their money back.. so we are likely to realise at least $3 per share… which is much better than current offer of $1.50
GJT Price at posting:
$1.52 Sentiment: Hold Disclosure: Held
