Bid interest for Lanitis pushes stock up

Lanitis Development Pcl (LDL), the owners of the Aphrodite Hills Golf course and resort and managers of Intercontinental Hotel announced that an institutional investor has expressed an interest to submit a bid for the company, helping the stock rally limit-up 17.8% to 38 cent on limited volume of CYP 64k.

Lanitis Development, which earlier released its first half results, reported a 125% increase in turnover during the first half to CYP 15.38 mln from CYP 6.8 mln a year ago in the same period, while net profit more than doubled to CYP 1.369.356 until 30 June 2006 compared to CYP 689.810 losses a year ago and CYP 552.000 profit for the whole of 2005.

With book value per share at 55 cent according to Financial Mirror calculations, the stock is grossly undervalued and despite the Friday rally of 17% to 38 cent, there is still room for growth.