Bizarre rise of ‘closed since 2004’- Beruwela Walk Inn finally under SEC band

Tuesday, 26 April 2011 01:18 - - {{hitsCtrl.values.hits}}

A bizarre rise in the share price of Beruwela Walk Inn which has remained closed since April 2004, finally saw the security slapped with the price band yesterday.

The share yesterday hit an all time high of Rs. 267.40 before closing at Rs. 253.50, still up by Rs. 75.20 from its previous close.

The stock’s previous best was Rs. 230 and in comparison to 8 April closing of Rs. 130, yesterday closing price was a whopping 95% or Rs. 123.50 increase. At yesterday’s peak price the gain was 105%. On the week ended 12 April, it closed at Rs. 152.70.

On a volume of just 24,700 shares via 136 trades Beruwela Walk Inn last week gained by Rs. 25.60 to close at Rs. 178.30 whilst it hit an intra-week high of Rs. 203. Its 52-week highest price is Rs. 230. During the past few weeks until yesterday the stock had risen by Rs. 141.50.

In comparison to relatively low weekly volumes of 24,700, 15,000 and 47,800 shares during the past three weeks between 1 April and 18 April, yesterday’s volume amounted to 99.200 via 510 trades.

Owned by world famous Singapore-headquartered Banyan Tree Group, Beruwela Walk Inn’s resort Hotel Swanee has remained closed for refurbishment since April 2004.

With no revenue Beruwela Walk Inn finished 2010 with a loss of Rs. 24.6 million, though lower in comparison to Rs. 35.6 million loss in 2009. Accumulated losses as at December 2010 was Rs. 497 million, up from Rs. 472 million in 2009.

Auditors in the 2009 Annual Report noted that the Company’s current liabilities have exceeded current assets by Rs. 174,884,255. The net assets stand at a deficit of Rs. 399,862,279 as at the Balance Sheet date. As a result, the continuity of the business as a going concern is largely dependent on the borrowings or introduction of the capital by the shareholders.