13-07-2012, 10:41 AM
(01-03-2012, 10:33 AM)Sfsh12 Wrote: With the demolishment of the Orchard road hotel, total revenue (and likely profits) is expected to be lower over the next two years or so. On the other hand, after the completion of the rebuild of the Orchard road hotel, the value of this property is likely to be enhanced.
How should an investor view this period of lower profitability but with the prospects of improvement in the assets?
Why was the dividend increased although near term future revenue (and likely profitability) is expected to be lower?
Thats why Hotel Grand Central waited till it hit a net cash position before commencing redevelopment works.
Ive compared both St****** and Hotel Grand Central and decided that St****** is junk.
Im now vested in this instead.
Regret not buying this when it was 74c.