Shares & Derivatives
CDL Hospitality trades at multi-month low levels $1.03 despite strong 2H outlook! (3 Sep 23)
By Ernest Lim's investing blog  •  September 3, 2023
Dear all CDL Hospitality Trust (CDREIT) has caught my attention after slumping from $1.19 on 31 Jul to close $1.03 on 31 Aug. After taking into account of $0.0251 dividend per share ex on 4 Aug, it is still down 11.6% for the month, notching a multi-month low despite a likely buoyant 2HFY23F. Let’s take a closer look on why CDREIT has caught my attention. Firstly, why did it drop 12% in Aug? The drop in CDREIT’s share price may be attributed to three main reasons, viz.
  1. a) 1HFY23 results missed some analysts’ estimates
1HFY23 results released on 28 Jul missed some analysts’ estimates. As a result, some analysts have trimmed their earnings estimates for CDREIT. For example, Morgan Stanley reduced their target price from $1.00 to $0.95 and reiterated an underweight / in-line call. Daiwa Securities also reduced their target price from $1.25 to $1.10 and reiterated a hold call.
  1. b) U.S. bond yields soared in August
U.S. bond yields jumped from 3.957% on 31 Jul to a high of 4.354% on 21 Aug (which is also...
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By Ernest Lim's investing blog
I am an avid investor, trader cum remisier. I am a Chartered Financial Analyst® charterholder, as well as, a Chartered Accountant of Singapore. I have published articles on a wide range of topics on finance and investment, ranging from market / sector outlook, technical analysis and fundamental analysis etc.

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