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Reader says...
Thanks for talking to yourself all these times.
You have really helped the average Singaporeans pick up good financial tips.
I have been invested in AHT and have collected good dividends.
I noticed that prices have dropped so far and am thinking of picking up more.
I read through their latest announcements and I don’t see anything that indicates that their fundamentals have changed.
However, their numbers for 2 AU Pullman hotels are not that good.
Also the exchange rate is not in their favour.
They also look like they may be thinking of expanding beyond Asia as per their change in mandate.
Try as I could, I can’t figure out whether these factors would be good or bad for AHT.
Am I missing something?
I also noticed that even though you are picking up shares in CDG, you are not doing it for SBS?
Since CDG taxi biz is at risk, how about just their bus biz?
AK says...
AHT is in hospitality.
There will be seasonal changes in fortunes.
Since I am staying invested for income, as long as AHT is well managed, the bumps will smoothen out over time.
Having more assets in different parts of the world could be a good thing because it reduces concentration risk and reliance on the A$.
Will have to wait and see.
I find SBS' valuation a bit rich compared to ComfortDelgro.
SBS is 75% owned by CDG.
I think SBS will be worth more in future but in the meantime, can we accept its richer valuation and also the much lower dividend yield (~ 2%)?
In years to come, SBS could increase dividend payout to shareholders.
Of course, then, CDG would be a major beneficiary.
Related posts:
1. Ascendas Hospitality Trust.
2. ComfortDelgro Analysis.
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