It is extremely exciting news that CNYD have entered a phase of what they describe as breakout growth. What I have found bemusing and somewhat disappointing is the apparent lack of investor excitement on the news!
As Gene_finder points out there are two more parks now on the agenda with no capital raising / share dilution involved certainly at this stage.
There was a burst of enthusiasm late last year / beginning of this with the CYND promotion to the Nasdaq with the price going above $16. I was expecting a subsequent move up, if not surge, following the confirmation that the Yunding Park venture was in the final stages before opening - although a bit delayed from the original plan (now opening August) together with the excellent 2009 full year results. While the price reached $14 in the run up, I believe, it then fell back.
Since then we have had the announcements of the Ming Dynasty World and 'Nourishing Life' projects which has broadened the CYND landscape to include what appears to effectively be a Theme Park and a Spa Centre / Resort thus appealing to a range of ages and tastes.
The business model is also being widened to include development / building of accommodation, food, entertainment and shopping facilities as well as owning land which can be commercially developed. This is rather than just collecting money at the gate of their existing developments.
I view these as positive moves by the company as this moves them out of the their Fujian province comfort zone and into two other provinces to announce themselves as a national company with higher horizons as well as the fact that they will now become involved in owning commercially viable land in good situations thus opening themselves to other sorces of revenue.
Not only this but it would appear that land has been purchased at preferential rates from the Government with on going tax benefits. CYND has obviously won a good standing with the Chinese Govt in seeing what they have achieved, they will be building a property base / have fixed assets which they will be able to finance from existing revenues. It also augurs well for winning future deals.
All this takes me back to my original point that in light of the initial excitement we had I'm almost a bit worried that I may have missed something pretty fundamental as the share price has gone backwards (down to around the $11.50 at one stage) and the CYND board has gone relatively quiet with a distinct lack of enthusiasm!
I had only joined this board relatively recently but have built up what for me is a substantial holding of CYND stock since they came to the market through their 'take over' of a defunct holding company several years ago. I would be very interested (and comforted!) to know what the views of the wise old heads that have benefited this board in the past are - drexion 2004 and redman 2014 to name but two - with also maybe an update of the excellent projection of earnings p/e's etc that were produced earlier.
Are there doubts about CYND's ability to take on these projects, the fact that they are based away from home, if they will suffer from organisational indigestion, or even that the opening of Yunding has been delayed because of rain! (as per their report)
I know that the price situation has been compounded with the larger sell off in the Chinese / World markets but it would appear to me that CYND are well poised to move the company forward at pace having previously made good and quick use of funds raised and with an amazing return on equity.
What would you say is considered to be fair price for this stock both currently and on a prospective basis say in 2012 when CYND will have five operational parks. In my estimation it would appear to be under valued at present.
Thanks in anticipation of your comments / input ...