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I am bullish on some stocks in all categories such as market leaders, small cap and medium cap.
I am bearish on few stocks and can expect sideway pattern for few stocks. Few stocks will go down.
In short, I am slightly bullish tomorrow.
I may be right or wrong.
A very important period is counting days in CSE I must say.As i commented greater part of consolidation is well reached and further corps,retailers will start picking up growth counters.
Why Corps start buying?
They are more chances that they will count on their year end profit booking as at 31.03.2011.Hence that would also dragged the little bit.Most probably we can see more improved buying in reaching the end of March.
There are different types of hidden gems. Some have hidden understated fixed assets including land and valuable tree. Some will have new attractive income sources in the future. Some will have new market, business expansion etc. They have little debt. More current assets including cash.
At present CSE at Over Sold Levels in many ways. The market sentiments are driving with more weight age over retail buyers and we have witnessed less participation of foreign and corp. in recent times.
There will market volatility time to time. Even we will see more volatility in commodity prices in the coming months. Still there will be great opportunities in these periods of volatility.
However how far the market has run in last 2 years we are in a period of Post war era and if you analyse the last q results of all most all the companies it has justified the PE levels currently trading at.
The IPO factor is a concern;However many say it is healthy where more liquid and new funds are attracted to the Capital Market. The long Term standing of the CSE is healthy.If you consider next 2-3 years the SEC cannot impose more liquidity via IPO's.
Now the market is oversold.Some may say it might fall further.It can be? However the ASPI will be in green with major buying by retailers coupled with corporates in a very short time. Some would feels like selling.Some will keep their baskets free to grab...!
Pls keep an eye on following counters in next few weeks which will be highly volatile and more buyer interest.
Banking & Finance ---MBSL,CFIN,ALLI,LOLC,HDFC,SAMP,(with turn around CEO,another 40 branches in 2011.)
Bev.Food & Tobacco -- COCO (Strongly Recommended with new Export Projects on Coconut
Drinks & with impressive PE below 10),GRAIN,CARG,BFL(highly recommended)
In Bev.food & tobacco sector BFL,COCO will benefit most due to increased in tourists, increased demand for their products, business expansion, new market, innovative ideas, and new products.
Coco Lanka is an investment trust, which is exploring acquisitions focusing mainly on the agriculture, food and beverage sectors. The company’s subsidiaries are engaged in plantations, manufacturing & marketing
agricultural products.
For the 2QFY11 Coco Lanka posted LKR511mn revenue, which is a 52% YoY growth comparison to the 2QFY10. Revenue of the group consists of income sources from agribusiness which supply agri products to export market and local market. Further substantial amount of revenue derived from its investment & services business. For the 6 months ended 2QFY11 agribusiness contributed 83% for the total revenue while remaining 17% shouldered by the Investment & services business.
Bottom line of the group saw a steep 208% YoY growth registering LKR156mn against LKR66.5mn in last year. Such a growth in bottom line was mainly due to increase in return from investments which includes in other income & 51% YoY dip in finance cost and other overall savings. Its other income component that comprise of short term investment, edged by a mammoth 4178% (from LKR2.39mn to LKR102.2mn) as a result of it mark to market valuation of short term investments.
The counter trades at annualized earnings potential of 3.4X for 2011E and trailing PER of 5.3X with 1.3X PBV. This has more potential to grow considering the sector PER of 21.7X and PBV of 5.1X.
Energy ---------------- HPWR,LGL
Tile ------------------- LWL,TILE
IT -------------------- PCH
Plantation ------------ KGAL,KAHA,TPL,KOTA,LDEV(with new acquisition)
However fingers crossed with wage revision agreement coming to an end by March 2011 & low demand for rubber with Japanese vehicle manufacturing firms ceasing production.
Diversified ------------ LCEY,CFLB,BRWN
Motor --------------- DIMO
Speculative ---------- GREG,PHAR
Hotels --------------- PALM,BHR
Also we must keep in our radar on DOCK and SPEN.
We should idea about their intermediate and major up trend and personality. In add ion if we have some idea about their lower base we will have some advantage when we decide to buy stocks.
Similarly after this bull trend in selected finance stocks we can see strong bull trend in some other groups and selected stocks.
Gud Luck
(this is according to user's opinion,consider TWICE before take a decision-add by MARK)
I am bearish on few stocks and can expect sideway pattern for few stocks. Few stocks will go down.
In short, I am slightly bullish tomorrow.
I may be right or wrong.
A very important period is counting days in CSE I must say.As i commented greater part of consolidation is well reached and further corps,retailers will start picking up growth counters.
Why Corps start buying?
They are more chances that they will count on their year end profit booking as at 31.03.2011.Hence that would also dragged the little bit.Most probably we can see more improved buying in reaching the end of March.
There are different types of hidden gems. Some have hidden understated fixed assets including land and valuable tree. Some will have new attractive income sources in the future. Some will have new market, business expansion etc. They have little debt. More current assets including cash.
At present CSE at Over Sold Levels in many ways. The market sentiments are driving with more weight age over retail buyers and we have witnessed less participation of foreign and corp. in recent times.
There will market volatility time to time. Even we will see more volatility in commodity prices in the coming months. Still there will be great opportunities in these periods of volatility.
However how far the market has run in last 2 years we are in a period of Post war era and if you analyse the last q results of all most all the companies it has justified the PE levels currently trading at.
The IPO factor is a concern;However many say it is healthy where more liquid and new funds are attracted to the Capital Market. The long Term standing of the CSE is healthy.If you consider next 2-3 years the SEC cannot impose more liquidity via IPO's.
Now the market is oversold.Some may say it might fall further.It can be? However the ASPI will be in green with major buying by retailers coupled with corporates in a very short time. Some would feels like selling.Some will keep their baskets free to grab...!
Pls keep an eye on following counters in next few weeks which will be highly volatile and more buyer interest.
Banking & Finance ---MBSL,CFIN,ALLI,LOLC,HDFC,SAMP,(with turn around CEO,another 40 branches in 2011.)
Bev.Food & Tobacco -- COCO (Strongly Recommended with new Export Projects on Coconut
Drinks & with impressive PE below 10),GRAIN,CARG,BFL(highly recommended)
In Bev.food & tobacco sector BFL,COCO will benefit most due to increased in tourists, increased demand for their products, business expansion, new market, innovative ideas, and new products.
Coco Lanka is an investment trust, which is exploring acquisitions focusing mainly on the agriculture, food and beverage sectors. The company’s subsidiaries are engaged in plantations, manufacturing & marketing
agricultural products.
For the 2QFY11 Coco Lanka posted LKR511mn revenue, which is a 52% YoY growth comparison to the 2QFY10. Revenue of the group consists of income sources from agribusiness which supply agri products to export market and local market. Further substantial amount of revenue derived from its investment & services business. For the 6 months ended 2QFY11 agribusiness contributed 83% for the total revenue while remaining 17% shouldered by the Investment & services business.
Bottom line of the group saw a steep 208% YoY growth registering LKR156mn against LKR66.5mn in last year. Such a growth in bottom line was mainly due to increase in return from investments which includes in other income & 51% YoY dip in finance cost and other overall savings. Its other income component that comprise of short term investment, edged by a mammoth 4178% (from LKR2.39mn to LKR102.2mn) as a result of it mark to market valuation of short term investments.
The counter trades at annualized earnings potential of 3.4X for 2011E and trailing PER of 5.3X with 1.3X PBV. This has more potential to grow considering the sector PER of 21.7X and PBV of 5.1X.
Energy ---------------- HPWR,LGL
Tile ------------------- LWL,TILE
IT -------------------- PCH
Plantation ------------ KGAL,KAHA,TPL,KOTA,LDEV(with new acquisition)
However fingers crossed with wage revision agreement coming to an end by March 2011 & low demand for rubber with Japanese vehicle manufacturing firms ceasing production.
Diversified ------------ LCEY,CFLB,BRWN
Motor --------------- DIMO
Speculative ---------- GREG,PHAR
Hotels --------------- PALM,BHR
Also we must keep in our radar on DOCK and SPEN.
We should idea about their intermediate and major up trend and personality. In add ion if we have some idea about their lower base we will have some advantage when we decide to buy stocks.
Similarly after this bull trend in selected finance stocks we can see strong bull trend in some other groups and selected stocks.
Gud Luck
(this is according to user's opinion,consider TWICE before take a decision-add by MARK)
Last edited by mark on Mon May 09, 2011 7:51 pm; edited 1 time in total (Reason for editing : add the quotation in brackets)
