Eagle Hospitality Trust

[Shiyi]

The selling seems not over after IPO ?
Is it because of this potential disaster from Queen Mary ship/hotel ?


 
Hope to have comments from buddies here .
 
(Just vested at 0.655 )

I have been trying to figure out the same. I held off from investing at higher prices due to this concern but the share price has dropped from 78 cents to 66 cents or 15%. What piques my interest at this level is not just the high forecast dividend yield (close to 10%) but also the fact that the Queen Mary was valued at USD 159MM out of a total portfolio valuation of USD 1,270MM or 12.5% of the portfolio. Hence , the share price decline assumes that the Queen Mary is worth zero IF you assume that the rest of the assets are still valued correctly. However, it is weird that this hospitality trust would IPO at 78 cents when the book value is 88 cents. To me, that sets off alarm bells. Why would the sponsors be so keen to offload these assets that they are willing to offer a significant discount to book ? It may be that this has now fallen into value territory but I am still scratching my head to get a better grip on what could be wrong with the business model to account for the IPO discount and poor share performance particularly given that the share price of the ARA hospitality trust has been reasonably stable

I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it  to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a  small position into EAGLE HT today . Hope I was not wrong in making this decision.

Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.

Just sharing. SSH selling info.

They are SSHs , got their shares thru private placements but sold after IPO below IPO price , any reason ?

Another substantial shareholder Shih Hau Yuan unloaded 5 million shares at US$0.675.