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CITY LODGE HOTELS LTD

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CLH trade ideas

Our opinion on the current state of CLHCity Lodge Hotels operates approximately 62 hotels across six African countries, primarily targeting the business travel sector. The company's performance largely mirrors the economic conditions in South Africa. Historically well-managed, City Lodge is poised for growth as the economy rebounds. However, it faces challenges from reduced corporate travel and conferencing due to cost-cutting measures, persistent load-shedding issues, and a significant downturn from the COVID-19 pandemic, which has severely impacted the hotel industry. On July 1, 2022, City Lodge announced the completion of its East African hotel operations sale, netting approximately R460 million. This move is part of its strategy to focus on recovery and growth in its core markets. For the six months ending December 31, 2023, the company reported an 18% increase in total revenue and a 10% rise in headline earnings per share (HEPS), with occupancies growing to 61% from 57% in the previous period, indicating a robust recovery. The share's trajectory has seen significant fluctuations, peaking at R171 in February 2018 before plummeting to a low of 225c in November 2020, largely due to a rights issue that diluted shareholder value but provided essential capital for the company. Since then, the share price has shown signs of recovery, buoyed by improving occupancy rates and the easing of pandemic-related restrictions. City Lodge's recovery is underpinned by its debt-free balance sheet, cash reserves, and access to substantial credit facilities, positioning it for steady growth post-pandemic. However, ongoing challenges like load-shedding remain a concern for the company and the broader South African economy. Investors eyeing City Lodge should consider its potential for recovery against the backdrop of economic and operational challenges.
JSE:CLH
by PDSnetSA
UPDATE City Lodge - Odd Lot Offer and will this be GOOD to buyCity Lodge, has been in this tiresome Symmetrical Triangle since October 2022... However, recently it's broken above which is showing positive signs that there is upside to come.. However, in the most recent SENS update there was a mention about the Odd Lot Offer. So let's break it down and what it means. 1. What's Going On: As of October 16, 2023, there were a bunch of small-scale shareholders in City Lodge, each holding fewer than 100 shares. These investrs are referred to as "Odd-lot Holders," which make up 58.22% of all City Lodge shareholders. However, when you look at the total shares they own, it's just a tiny 0.06% of the market. Now, managing these tiny portions costs a lot, creating a headache for everyone. 2. The solution To solve this issue, at City Lodge's board of directors are suggesting an Odd-lot Offer. This means they want to buy back the small amounts of shares from these Odd-lot Holders, making life simpler for everyone involved. 3. So what do these Odd-lot holders get? If you're one of these Odd-lot Holders, you get a chance to cash at a price that's 5% more than the average value of City Lodge shares over the past 30 days. It's like a special deal, and you won't have to pay any fees to make the transaction. 4. How it works To make this happen, City Lodge needs approval from its shareholders. They discussed it at the Annual General Meeting on November 23, 2023. If the plan gets a green light, Odd-lot Holders can decide to sell their shares at the offered price or keep them. 5. The tax story They considered the Odd-lot Offer isn't a dividend but more like a return of capital. This decision has some tax implications, so they suggest you chat with your tax expert for the details. City Lodge wants to simplify its shareholder list, and if you're an Odd-lot Holder, you have a choice to make – take the deal or keep riding the City Lodge wave.
JSE:CLHLong
by Timonrosso
UPDATE: City Lodge chose a direction and it's a skyscraper!The last update with City Lodge was the market was moving in a very large Symmetrical Triangle. It was luck of the dice whether the makret was going to break up or down. But there were certain signs showing an uptrend was more evident. The support level was making higher lows. The price did not crash down when it went below 200MA> And now with the 7>21 and with the Price above the 200MA, it's looking good. We could easily see the price move from R4.77 to R5.44.
JSE:CLHLong
by Timonrosso
Our opinion on the current state of CLHCity Lodge (CLH) runs a group of about 62 hotels in six African countries, with most of its business in South Africa. It is primarily aimed at the business traveller and hence its performance is mostly a function of the South African economy. Over the long-term, this is a company which is well-run and should grow as the economy recovers. Cost-cutting by most South African companies has resulted in less conferencing and business travel. On-going load-shedding is also negative, but the greatest impact has come from COVID-19 which has decimated the hotel industry and City Lodge in particular. On 1st July 2022, the company announced the finalisation of the sale of its East African hotels for a net R460m. In its results for the six months to 31st December 2022 the company reported total revenue up 94% and headline earnings per share (HEPS) of 17c compared with a loss of 6c in the previous period. The company said, "The improved occupancies and the return to normal trading conditions, has also contributed to the increase in operating costs. Salaries and wages increased by 43% to R230.3 million, as the prior year included 30% salary reductions". In a trading statement for the year to 30th June 2023 the company estimated that HEPS would be between 29,6c and 31,3c compared with a loss of 8,7c in the previous period. The company said, "Travel trends continue to rebound and the ebb and flow demand patterns have normalised to pre-Covid- 19 pandemic patterns". In an update on the 3 months to 30th September 2023 the company reported 62% occupancy and a 9% increase in room rates. The company said, "The Group remains in a net nil debt position, with a positive bank balance of R100 million as at 22 November 2023 and an outstanding loan balance of R70 million". Technically, the share peaked at R171 in February 2018. It fell to a new low of 225c on 4th November 2020 following the dilutive rights issue in August 2020, but has since rallied to 467c. The company conducted a rights issue of 566,4m shares at 212c each - which was massively below the share price of around R15 prior to the issue. This obviously diluted existing shareholders and led to a sharp drop in the share price, but it did give the company a much-needed injection of R1,2bn. We see this share as continuing to recover steadily now that the pandemic is behind us. Obviously, the loadshedding is an on-going problem for this company as it has been for the entire economy.
JSE:CLH
by PDSnetSA
City Lodge Symmetrical Triangle getting closer to the breakoutWhich way? Symmetrical Triangles are generally known as Continuation patterns. This means, when the price breaks out it normally moves in the trend of the prior direction... However, the trend has been sideways before this. It's been in the Twilight Zone for over a year. And it gets worse. When the price oscillates up and down in between the 200MA - You know it's in complete indecision. Many lessons to learn from this chart and this market. Many technical analysis tips you can add to your acumen and arsenal. And as City Lodge is in the Hospitality sector, things haven't gone up since Covid... The prices have become more expensive. The seasonal pricing are vastly different and most people just don't have the money like they used to. It's what I call the slight depression. The rich are getting ridiculously richer and the poor are struggling to even afford Lotto tickets. And this will get worse and worse. It's time to think above and beyond the system and mentality of the sheeple. And break away. So there is not much we can do with CLH other than wait for a break up. But if it breaks down, we can only watch it fall further. My two targets are in place and my humility is intact because I have NO idea which direction it wants to break.
JSE:CLH
by Timonrosso
Wild guess for upside for City Lodge to R7.00I've just gotten off a plane, so excuse if I am missing something. But these jet lagged eyes potentially sees a massive Cup and Handle in the process. Ignore the indicators like 7=21 price <200 and RSI<50. And just see the price action. We have higher lows forming, strong buying at the bottom of the range (could that be smart money and the big boys.) We have seen an absolute rally in hotels and accomodation since Covid. Prices are pumping up and yet hotels are still being booked out like no tomorrow. So, we could actually see a major rally of upside in the sector. My first crazy target is to R7.00. What do you think?
JSE:CLHLong
by Timonrosso
City Lodge C&H potential but need to wait - Target R6.51Cup and Handle seems to be forming on City Lodge. There are signs of a rounding cup, a handle that is in the process and now it needs to complete. Once the price breaks above the brim level, it'll be more positive for upside. 7=21 = About to cross Price>200 - Bullish RSI>50 - Pointing down? Target R6.51 WARNING is that the previous trend was sideways. We are not a fan of buying breakout when the market is going no where slowly. HOWEVER, if you look farther back you'll see there is a MASSIVE W Formation that is also showing since May 2022. So if we get a break above the neckline, this could be a fantastic medium to long term hold as well. ABOUT THE COMPANY City Lodge Hotels Limited is a South African company that operates a chain of budget hotels. I still think City Lodge is better than many international hotels "budget" chain. I mean, budget hotels in Switzerland are like motels in America (Just saying). Founding: City Lodge was founded in 1985 by Hans Enderle. Public Listing: City Lodge was listed on the Johannesburg Stock Exchange (JSE) in 1987. Brand Portfolio: The company operates under various brands including City Lodge Hotel, Town Lodge, Road Lodge, and Courtyard Hotel. Expansion: City Lodge started with just one hotel in Johannesburg, and as of 2021, the group has over 50 hotels in South Africa. African Presence: Besides South Africa, the group also operates hotels in Botswana, Namibia, Kenya, and Tanzania. Room Count: City Lodge Hotels group operates over 7,000 rooms across its various properties.
JSE:CLHLong
by Timonrosso
CLH: rounding bottom patternA price action above 460 supports a bullish trend direction. Further bullish confirmation for a break above 480. The target price is set at 500 (upper range of the rounding bottom pattern. the stop-loss price is set at 440 (200-day simple moving average). The win/loss ratio is 1.6:1. A rounding bottom pattern, also known as a saucer bottom or a bowl bottom, is a technical chart pattern that indicates a potential trend reversal from a downtrend to an uptrend. It is characterized by a gradual and rounded price formation resembling the shape of a bowl or a saucer.
JSE:CLHLong
by Peet_Serfontein
$JSECLH-City Lodge Hotels Ltd: 359 A Key Level To WatchCity Lodge released a pleasing set of interim results for the six months ended 31 December 2022 on the 24th of February 2023. Although the share price did trade lower, there are reasons to be optimistic. Taking a broader look at price action from an Elliott Wave perspective: From 222 to 650 we have a leading diagonal for wave 1. From 650 to 359 we have a zigzag ((abc)) with the ((c)) wave being an ending diagonal. What is most significant at this current juncture is that from 546, the correction, though very deep, does not make a new low relative to 359. Though not labelled, from 359 to 546 can be tentatively labelled wave (i) and from 546 to 362 wave (ii). Another bullish signal is the reverse divergence between price and the MACD. Between the Sep 22 and Mar 23 lows, the MACD made new lows whereas price did not. Trade idea: buy @ market stop-loss @ 360 take-profit @ 546 For the previous coverage of City Lodge see link below.
JSE:CLHLong
by Loyiso_BlaqueSoros_Mpeta
TARGET HIT City Lodge hit the target at R3.71 but I'm not happy Bear Diamond Pattern formed on City Lodge a few weeks ago. We then had a strong break down, which showed a big collapse to come. We set our target at R3.71 which many traders thought I was crazy. I told them I hope I am wrong, because I don't like when companies drop in value who offer great value to customers. But the charts showed downside and I couldn't be biased. The target hit and unfortunately, we still see downside to come. I'll be waiting for the next formation in the meantime.
JSE:CLHShort
by Timonrosso
City Lodge looking great for upside to R6.46Cup and Handle - Retest 7>21 SMA - Bullish Price >200 Bullish RSI >50 broken Neg Div. Target R6.46 General Info City Lodge (JSE:CLH) is a South African-based hotel group listed on the JSE in 2000. It operates in variety of hotels across South Africa, including the City Lodge Hotel, Road Lodge, and Town Lodge brands. You'll find the hotels mainly in SA (Johannesburg, Cape Town, Pretoria, Durban, and Port Elizabeth). But I believe it also has hotels in other parts of Africa like Botswana, Namibia and Mozambique.
JSE:CLHLong
by Timonrosso