Real growth of CSE companies in a chart

hasi17 · 1 Real growth of CSE companies in a chart Sun Dec 11, 2011 10:37 am

hasi17

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Have you seen this?
This shows the earnings "growth" (acceleration or deceleration) over the quarters. It's decelerating really fast. Now it's barely over 10% but I think the growth will drop more before it leveling out.
Anyway this is not Singapore. We can't expect miracles with Sri Lankans.
Saying there was a 10% growth doesn't mean much you have to compare in context. This chart shows just that.
This is for the people who talk about macro economics, growth, massive profits, potential and all the other cool words.
Mid term and long term investors should be really really cautious. Company profit growth has slowed down exponentially.

Real growth of CSE companies in a chart Growth10

Real growth of CSE companies in a chart Growth10

(Image source: LSL Research)

insidertrader · 2 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 4:45 pm

insidertrader

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For value investing CSE is not a place. It's only good for trading (without thinking of the real value of stocks.)

As more foreign direct investments come in, the competition will be severe to the local companies. We'll see company profits flattening out. These stocks will be stuck in these values for a long long time. Only 'good news' and pumping will move them up and then they will come back down again naturally.

insidertrader · 3 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 5:13 pm

insidertrader

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Also look at the enormous net profit in the chart. Still there is a big difference between net profit and operating profit growth. Look at where operating profit growth is currently at. It's just touching the bottom line. So there hasn't been any growth at all. The net profit should touch that line when companies lose other income gimmick (when they don't have anything to sell)
So the real growth will come down drastically in the coming months and quarters.

Value investors beware.

mono · 4 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 5:22 pm

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That chart makes no sense. Are we talking about QoQ growth here or YpY growth.

mono · 5 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 5:32 pm

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http://www.lsl.lk/admin/doc_resrch/d_110630014318.pdf

That's the actual report. Most sectors have grown a healthy 40-50%. The low number you are seeing there is a consequence of investment funds & Plantations. Plus for the last two years most companies got to serenade thier financial statements with portfolio gains now those gains are in the negative.

Chinwi · 6 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 8:40 pm

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This is misleading.
No company recorded a growth over 200% due to the ending of war.

As the consumers or as the living beings in this country we did not see such a growth and then a decline in business, profits or any other activity in CSE listed companies or any other entity in general.

As mono said this graph is similar to our portfolio value growth during this year. .
The funds also got similar result with the declining of trading and profit making opportunities due to the reasons we all know.

You should not extrapolate this wrong interpretation to tell us the future .

Rajaraam · 7 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 8:49 pm

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Chinwi wrote:This is misleading.
No company recorded a growth over 200% due to the ending of war.

As the consumers or as the living beings in this country we did not see such a growth and then a decline in business, profits or any other activity in CSE listed companies or any other entity in general.

As mono said this graph is similar to our portfolio value growth during this year. .
The funds also got similar result with the declining of trading and profit making opportunities due to the reasons we all know.

You should not extrapolate this wrong interpretation to tell us the future .

Well said. Agree.

Rajaraam · 8 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 10:19 pm

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hasi17 wrote:Have you seen this?
This shows the earnings "growth" (acceleration or deceleration) over the quarters. It's decelerating really fast. Now it's barely over 10% but I think the growth will drop more before it leveling out.
Anyway this is not Singapore. We can't expect miracles with Sri Lankans.
Saying there was a 10% growth doesn't mean much you have to compare in context. This chart shows just that.
This is for the people who talk about macro economics, growth, massive profits, potential and all the other cool words.
Mid term and long term investors should be really really cautious. Company profit growth has slowed down exponentially.

(Image source: LSL Research)

We are not that fools to trust you friend. It is nice if you could refrain from posting with misleading articles .

Kumar · 9 Re: Real growth of CSE companies in a chart Sun Dec 11, 2011 10:25 pm

Kumar

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Rajaraam wrote:

hasi17 wrote:Have you seen this?
This shows the earnings "growth" (acceleration or deceleration) over the quarters. It's decelerating really fast. Now it's barely over 10% but I think the growth will drop more before it leveling out.
Anyway this is not Singapore. We can't expect miracles with Sri Lankans.
Saying there was a 10% growth doesn't mean much you have to compare in context. This chart shows just that.
This is for the people who talk about macro economics, growth, massive profits, potential and all the other cool words.
Mid term and long term investors should be really really cautious. Company profit growth has slowed down exponentially.

(Image source: LSL Research)

We are not that fools to trust you friend. It is nice if you could refrain from posting with misleading articles .

Well said.
But on the other hand he is new to the forum and wants to establish himself no?
Please see his first post regarding cash flow.

aj · 10 Re: Real growth of CSE companies in a chart Mon Dec 12, 2011 8:49 am

aj

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For people who studied at school the original post talks about acceleration (or in this case deceleration, if there is such a word) instead of velocity. It's the angle of the line.

If you read the full report and read between the numbers you should see that brokers never say don't invest if it's the worst market in the world. They always say buy more. What the report says between the lines is that growth was mostly one off gains, tax reductions and ends each sector with the optimistic message "future profits will be flat or grow moderately if everything goes well."

Other brokers always say look it's a 10% increase in profit (even if the profit growth went down 80% in the last quarter) Anyway looking at this report I think LSL must be a better broker than others to at least show some of the reality.

hasi17 · 11 Re: Real growth of CSE companies in a chart Tue Dec 20, 2011 8:32 am

hasi17

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After going through more reports and numbers small update.
As you can see from the chart, the profits have slowed down tremendously over the last quarters with the diminishing other income.
I feel next quarter core business profits would either marginally go up or sometimes will be in the negative growth. Only thing is pump more good news, meetings, credit relaxations, extensions, road shows, breakthroughs.

pirate · 12 Re: Real growth of CSE companies in a chart Wed Dec 21, 2011 12:50 pm

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@ hasi17
It is better if you could have post the sources in the first place. Anyway no body is perfect and i don't see any point to be harsh on you. If you didn't have any wrong intentions( i mean it), just keep analyzing. They say that "try, try and try.one day you can fly".it seems that you have worked hard to find these things. And i appreciate your work. but not the conclusions mate.
Keep up the good work.