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Genesis Land Development Corp T.GDC

Alternate Symbol(s):  GNLAF

Genesis Land Development Corp. is a Canada-based integrated land developer and residential home builder. The Corporation is engaged in the acquisition, development and sale of land, residential lots and homes in the greater Calgary area. It operates through two segments: land development and home building. As a land developer, Genesis acquires, plans, rezones, subdivides, services and sells residential lots and commercial and industrial lands to third party developers and builders, and sells lots and completed homes through a wholly owned subsidiary, Genesis Builders Group Inc. (GBG), its home building division. The land portfolio is planned, developed, serviced and sold as single-family lots and townhouses, multi-family and commercial parcels. It designs, builds and sells homes on a significant portion of its single-family lots and townhouse land parcels. It also acquires single-family lots from other land developers to build and sell single-family homes in additional CMA communities.


TSX:GDC - Post by User

Post by symboton Apr 22, 2010 1:51am
569 Views
Post# 17018147

My conference call summary

My conference call summaryI just listened to their conference call from yesterday...  Overall, they sound very confident, and I like their priorities right now.

Highlights:

1.  Gobi says he anticipates the company will have its best year ever in 2010, based on sales through March and improving conditions in the Calgary market.  I was a bit surprised the topic of increasing interest rates in Canada never came up, but it didn't.

2.  They have a "large" inventory of lands in the NW and NE of Calgary (this means about 5-years of future development).  For now they are focusing on paying down debt, and they want to eliminate all debt on land holdings so the only debt they have is financing actual development.  It sounds like this will take at least one year.  After that time, they want to try to close the gap between the stock price and NAV by buying back shares and/or instituting a dividend.

3.  Gobi talked about building the company over the next 3-5 years into a 500-600 million dollar market cap (current is 180 million).  Part of this strategy includes building a more stable revenue stream with properties like their new Sage Hill Shopping mall.  They built this place and developed the land around it, and then they will retain it as a revenue generating property.
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