Market giving a second chance! + COCR Discussion...

Arena

Arena

Assistant Vice President - Equity Analytics

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Ur upper prediction 8 will be achieved.

But they cant give any chance to others, every body is aiming at micro finance so in couple of years This industry will be matured and the super normal profits will be vanished.

How about launching the Micro Finance concept to other developing countries in a mega way. Just like franchising McDonald out lets. Think on that. Crazy leaders will do crazy things at a high risk. I dont find any other way to achieve the rs. 287 with in 3 years.......

Happy trading.

Rapaport

Rapaport

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If they achieve around 8/- it is really brilliant but like you said such rapid growth cannot be sustained and once things mature out the growth should moderate. To keep this as a long term stock one needs to analyse how the company manages to stabilise its quick growth. You would not want a quick up and a tumbling down.

Yes they have to be aggressive and grab all chances/customers as they possibly can and hold a large share of microfinance. At the same time we must watch for the risks in such an industry.

Will wait for the Sept results to give us a guide.

They are planning to open many branches this year and next year and they really have alot more area's to cover......

http://www.cclk.lk/index.php?/home/profile/branch_locations

http://www.lbfinance.com/branches.html

http://www.plc.lk/inpages/our_locations/map.php

Cheers!

wgsaman

wgsaman

Senior Manager - Equity Analytics

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COCR is a good investment

ranferdi

ranferdi

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wgsaman wrote:COCR is a good investment

Yes today price is very attractive to buy.. But what to do.. mate I am out of Credit too...

LateTackle

LateTackle

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Thank you a great analysis

Arena

Arena

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How about SLIM Awards - Brand excellence 2012. Still not publicly published the results..
Hope COCR did a good marketing campaign during the last year..................Lets wait for the official announcement.

fairbullrun

fairbullrun

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[quote="Rapaport"]

Maybe someone can create a list of attractive shares with their July/August prices and current prices compared.[/color] I shall do it if i have time and post it.

Could u able to do that, if so please share to the forum Very Happy

wgsaman

wgsaman

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Dear all COCR won the GOLD award for Service Brand of the year & Bronze award for Local brand of the year @ the SLIM Brand Excellence 2012-Commercial Credit

Arena

Arena

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COCR 5 months results is good and B/S is very strong but this is far below from what i expected. Net interest income has up by 70% but the Additional costs incurred on new branches have diluted the profit. Any way this is at satisfactory level and Need to wait Another 2 t 4 quarters. Net assets fort he 30th Sep should be around 7.50.................

Slstock

Slstock

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Amal Mudunkotuwa wrote:COCR 5 months results is good and B/S is very strong but this is far below from what i expected. Net interest income has up by 70% but the Additional costs incurred on new branches have diluted the profit. Any way this is at satisfactory level and Need to wait Another 2 t 4 quarters. Net assets fort he 30th Sep should be around 7.50.................

So 6 month eps around Rs 2.5-3? So this is around my expectation levels as mentioned before.

Arena

Arena

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Ha ha but there is no Growth in EPS -----------which means u hvnt expected a growth ?

Any way growth of the net interest is eaten when it comes to bottom line due to admin expenses. Really i expected at least 2.35 for the 6 month. In this way they cant even match the last year Year end profit. But B/S getting stronger..........

Slstock

Slstock

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Amal yes I did not expect massive growth as I said before.

We need to understand something. When companies
are growing and in early stages we cannot expect massive quarter to quarter
growth. The growth show in March was good so I will give them allowance to consolidate before showing greater growth. There will be overhead expense in expansions etc.

This will explain why i said I would be happy with Rs 5-6 eps this year all this time. If they can improve NAV to around 10 by March 2013 I would be more than happy. Thats 100% improvement in NAV in 1 year.

Also the loan loss provitions this period was very high. 150 million! Note also that the dividend also will effect the NAV growth.

Amal Mudunkotuwa wrote:Ha ha but there is no Growth in EPS -----------which means u hvnt expected a growth ?

Any way growth of the net interest is eaten when it comes to bottom line due to admin expenses. Really i expected at least 2.35 for the 6 month. In this way they cant even match the last year Year end profit. But B/S getting stronger..........

Arena

Arena

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Yep But they have not given you that expected 5-6 EPS also. For the Q they got only EPS of 1.That is y their annualized EPS is 2.35. Ur expectation also seems not materializing.

hope u got the point.

Any way if yweremove the additional Admin costs and other new branches costs, company is doing well. But since this is a finance company one set of bad Debtors will jeopardize the Bottom line. Any way lets wait and see. Good company at this level...............

Rapaport

Rapaport

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results out??

Slstock

Slstock

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Amal, am a bit confused. You seem to repeatedly state about results being below my expectation. Well thats not that important is it?

You expected a lot higher eps, I expected lower than you. Now for the 5 month results are below both of us if annualized presently.

Do I sense you are dissapointed in something?

Lets await the 6 month first. Also it appears that 2nd half of the
year gave them higher return last year. So annualizing right now might
be that good.

Amal Mudunkotuwa wrote:Yep But they have not given you that expected 5-6 EPS also. For the Q they got only EPS of 1.That is y their annualized EPS is 2.35. Ur expectation also seems not materializing.

hope u got the point.

Any way if yweremove the additional Admin costs and other new branches costs, company is doing well. But since this is a finance company one set of bad Debtors will jeopardize the Bottom line. Any way lets wait and see. Good company at this level...............

ranferdi · 41 COCR..EPS & Debenture Issue. Wed Oct 31, 2012 9:46 am

ranferdi

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Five Month Financials Look Very positive Too... Five month Income Shown in for the Debenture Issue is 2.43 For Five month period. So expected EPS is 5.83. Taking this EPS into consideration share is trading at 2.57 PER (Share price 15). NAV keeps rising due to income enhancements Guys I beleive this share will fly soon, What your openion??
For your info I have 58000-Shares and waiting to collect more as a Long Term Investment.

Arena

Arena

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Defa this is a long term one of the best counter.

But Ur EPS calculation if wrong. EPS of 2.43 is the Annualized one. Not the 5 months. 5 months is around 1...................U better foget about the Investment for 1.5 years time.

Rapaport

Rapaport

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Slstock and Amal

Even i did not expect a huge EPS this time around and probably the next 06 months with the general economic conditions and branch expansion. Also the company is spending alot for advertising.

The company is definitely growing and bagging awards here and there and it needs to cosolidate its growth and also the NAV is improving.

Cheers!

Rapaport

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http://forum.srilankaequity.com/t23836-market-giving-a-second-chance-cocr-discussion?highlight=cocr

Arena

Arena

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yep yep i agree with both of uuuuuuuuu.

They have increased their Net interest.................
This admin cost will be covered once New branches operate at their Break even level. So expected amounts are being achieved if we exclude those new costs.

This is a growing or the fastest growing Finance company except Valible Finance.

I am waiting to see the results of PARQ. Want to see how well they are doing with Their new Swisstec Aluminum company.

Rapaport

Rapaport

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Yes Amal

Another company which incurred alot of cost input for branch expansion was Sampath Bank and their new branches are expected to add to the profits from December onwards. Despite this, SAMP has outperformed.

I think COCR needs time and their goals are bit too unrealistic.. We need to track it for a year. With improved economic situation, it can fast track its growth. The next 06 months may be even more harsh.

I would consider accumulating this stock again if it hits 10/- to 12/- zone..

Cheers!

Arena

Arena

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It looks COCR is collecting. This is a great collection method since they do it with out a single large buy order. Cash map should show the game...But i dont kw how to see the cash map but know the meaning.............

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Market giving a second chance! + COCR Discussion...

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41 COCR..EPS & Debenture Issue. Wed Oct 31, 2012 9:46 am

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