Re: CLS Holdings (CLI) - my Tip for 2024...
Posted: January 30th, 2024, 1:34 pm
Quite so as regards leverage, and indeed I would have thought the effect of leverage would be blindingly obvious to any sensible investor, or indeed anyone with a mortgage. Nuff said
Doubt about property values has to be at the heart of the current malaise in property company shares, and one must be aware of that risk as an investor. As a matter of fact I have recently bought CLI shares with the proceeds of EPIC, but not too big a holding.
I would not read too much into a few small property sales by CLI and then try to project that discount onto the whole portfolio. It may be that they sell the ones that are easiest to realise? Anyway we shall see what happens, but I guess offices will be needed for a long time and property tends to hold its value in the long term against inflation, which we have had a lot of.
It is also reassuring that a substantial percentage of the equity is still owned by the founding family, who will probably be used to taking a long term view.
Doubt about property values has to be at the heart of the current malaise in property company shares, and one must be aware of that risk as an investor. As a matter of fact I have recently bought CLI shares with the proceeds of EPIC, but not too big a holding.
I would not read too much into a few small property sales by CLI and then try to project that discount onto the whole portfolio. It may be that they sell the ones that are easiest to realise? Anyway we shall see what happens, but I guess offices will be needed for a long time and property tends to hold its value in the long term against inflation, which we have had a lot of.
It is also reassuring that a substantial percentage of the equity is still owned by the founding family, who will probably be used to taking a long term view.