Comm Bank _ Results

http://www.cse.lk/cmt/upload_report_file/369_1298479477939.12.2010.pdf

http://www.dailymirror.lk/news/9976-combank-tops-rs5bn-in-net-profit-.html

E.P.S is 14+/=and if you take the non voting share it is still an under valued share. Good prospects for apriciation if you have the holding power.

Thanks, I know the real value of this share.

dd wrote:E.P.S is 14+/=and if you take the non voting share it is still an under valued share. Good prospects for apriciation if you have the holding power.

It's overvalued both in terms of PER & PBV. It's trading more than 20(x) times PER and more than 3 times book value.

For example NDB trades at 1.9 of its book value. if you go by the valueation , NDB is a value gem... accorduing to Gem talks here ( and investnow).

I disagree with SALT for following reasons

1) P/E of 20 is on the voting share and I was talking of the Non Voting share.

2) NDB has reporter results below what they achieved last year. No growth in earnings and how could invest in a company which is not growing in terms of profitability.

So much for the banking rally everyone was harping about. Only NTB and DFCC have produced decent results so far. But they are both struggling to keep above the support levels.

dd wrote:I disagree with SALT for following reasons

1) P/E of 20 is on the voting share and I was talking of the Non Voting share.

2) NDB has reporter results below what they achieved last year. No growth in earnings and how could invest in a company which is not growing in terms of profitability.

Whether you agree or disagree is upto yo, but the fact is NDB has grown in the year. See the results below.
http://www.cse.lk/cmt/upload_report_file/386_1298457927.pdf

You can not value NV share in isolation as ther is always control premium embeded in the voting shares. You have to compre Voting shares only.

tubal wrote:So much for the banking rally everyone was harping about. Only NTB and DFCC have produced decent results so far. But they are both struggling to keep above the support levels.

SAMP has produced a good result

Monster wrote:

tubal wrote:So much for the banking rally everyone was harping about. Only NTB and DFCC have produced decent results so far. But they are both struggling to keep above the support levels.

SAMP has produced a good result

Agreed but it has already gone up in price and now it's probably in the same boat as NTB and DFCC

Whats the use of a voting premium when you have maximum ownership limitations of 15 % applicable in licensed commercial/specilised banks by the central bank ?????????. : :

dd wrote:Whats the use of a voting premium when you have maximum ownership limitations of 15 % applicable in licensed commercial/specilised banks by the central bank ?????????. : :

Logically, you are right, I agree with you and buy only NV shares.

But, market valuation has alwyas considered NV as sub par and given a premium. So, you can not compare NV isolation.

In terms of capital and soundness of business, NDB is better. COMB has been the star, but Sampath is quickly taking over from them. I have not followed Sampath's valuation.

as far as DFCC is concern i am very much forwarded in looking how they are going to perform in 2011.

They has considerable amount of cash, mainly due to the disposal of comm bank shares so they may effectively used for long term borrowings
Reductions in the tax it will only reduce the effective tax rate, but the fund saving will not be there for 3 years even though their profit will go up by at least 15% on the tax savings
At the same time they are not in a position to enjoy the work done by the comm bank, due to the loss of associate status
also sometime back somebody said the DFCC & DVB need to be separated before the year end - but i don't know much about it

so friends what do you all thing about it

dd wrote:E.P.S is 14+/=and if you take the non voting share it is still an under valued share. Good prospects for apriciation if you have the holding power.

COMB, NDB and SAMP , all three are having good prospects for appreciation. COMB exceptional profits and growth in profits makes it special, large scale institutional buying is an indication that share prices could appreciate in the future.

Gaja wrote:as far as DFCC is concern i am very much forwarded in looking how they are going to perform in 2011.
also sometime back somebody said the DFCC & DVB need to be separated before the year end - but i don't know much about it

DFCC and DVB going to merge into a single bank. I dont know the time frame but it will never be separated.

dhamm wrote:

Gaja wrote:as far as DFCC is concern i am very much forwarded in looking how they are going to perform in 2011.
also sometime back somebody said the DFCC & DVB need to be separated before the year end - but i don't know much about it

DFCC and DVB going to merge into a single bank. I dont know the time frame but it will never be separated.

All banks produce impressive results. now with the Union Bank IPO all these shares can start an upward journey. I think it is worth holding in to all these stocks a little more time. With the IPO all shares could appreciate.

Any thoughts on SEYB, MBSL & SEMB???? There current valuations according to the earnings??