Orbis has sent out invitations for investor meetings for today evening and tomorrow, saying it would reveal modifications to its plans on modernisation and expansion of its hotels chain.
Our view: We anticipate that
Orbis would announce modifications to its plans in three key areas i) higher capex on the back of rising construction materials costs, ii) later dates for new hotels openings due to red tape iii) bigger pool of assets for disposal in order to finance higher capex. We might see some price appreciation in anticipation of positive news today, but we would take the opportunity to sell into the strength.