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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » What will happen PLC.N0000 Price during Jan & Feb

What will happen PLC.N0000 Price during Jan & Feb

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hasarel

hasarel
Manager - Equity Analytics
Manager - Equity Analytics
Need expert help to decide to buy please ...

raptor


Manager - Equity Analytics
Manager - Equity Analytics
Do people not read previous posts? there is a wealth of info on PLC on this forum. Search and you will be rewarded. Don't be lazy

hasarel

hasarel
Manager - Equity Analytics
Manager - Equity Analytics
Gentleman, if you don't want to reply my query, leave it, Don't think I'm Lazy, without knowing me very well.

So many users in this forum have helped me a lot, but not like you in Negative way. Question

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
hasarel, raptor is correct... U should search the forum before asking a question.. There any many threads regarding PLC..
We've discussed a lot about this counter being a good dividend player, a long term play and the problems as well..

So try searchin pls..

hasarel

hasarel
Manager - Equity Analytics
Manager - Equity Analytics
hasarel, raptor is correct... farao Partial Answer ?,

Dear Admin please don't encourage somebody else to criticize users' personality without knowing... in this forum .

Instead of saying" Don't be Lazy", it's pretty polite says " please search forum for your query , as you said "'

Any way thanks a lot for your Kind Advise on PLC. Very Happy

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Hahasel, we all want to help u.. Ppl may tell things in different way, as admin I cannot change their attitude..

From ur part as a new member, u also have to show some interest rather than requesting expert help. There're no experts in forums, we all learn from each other. There are members who have knowledge and understanding of market behaviours but still they can do mistakes too.

Why I'm telling u this is; what happens if someone said u should buy PLC yesterday when it was at 16 and u bought it today. Then seeing it going down u may panic and even sell at 15.50 know?
But what if you could wait a bit and buy this around 15.20-15.30? U'll be happy right?

But on the otherhand, if we tell u how to catch a fish rather than giving u the fish, wouldn't it be fruitful to u?

My stance on PLC is, its getting seasoned at this moment, I sold what I bought ard 12 @ 16. And this is a very good counter as well below 15 even if I sold to realise profits.. I'd definitely buy this back when I see the opportunity.

1) Yen has come down, so even though the Tax is high as sky for vehicles, there's a temporary setback for ppl to buy vehicles these days, then we may see an improvement in leasing business. And what's the leading institute for leasing?

2) PLC is to merge with its finance arm SMLL, this amalgamation leads more business opportunities under one roof.. This may be the main reason for it to go up from 12-13 levels.

3) PLC gives 2 dividends a year. Mainly Rs.1/- to Rs.1.50/- annually. At this price it only seconds to JINS in dividends imo.

Aforementioned reasons are for consideration, if you wanna buy PLC, I'd say watch the trend as its a bit heated now. At any moment this can go if buying power is shown.

hasarel

hasarel
Manager - Equity Analytics
Manager - Equity Analytics
Dear Admin,

Sounds good about your advise on Plc , But not about my Interest, I think nobody will join this forum, if they don't have interest.

Appreciate your time for reply... Very Happy

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@hasarel wrote:Dear Admin,

Sounds good about your advise on Plc , But not about my Interest, I think nobody will join this forum, if they don't have interest.

Appreciate your time for reply... Very Happy

If you're doing an assignment as a part of your higher studies do ur tutors spoon fed u what u want to search or they'd give the discussion topic and let u research on it?

This forum is like a encyclopedia.. U rarely get a comprehensive coverage of stocks and related discussions else where. Therefore, we've always requested our members to search their need in this forum prior to ask, cuz duplicity is unnecessary even-though it wont do any harm Wink

To me searching for something is part of learning.. I rather try finding than asking..

What I meant was; show some interest on the topic u want information with some background search, so it will give the reader some enthusiasm to look at your request...

Gosh! I saw u mentioned "without knowing u well" several times.. Of course we dont know u.. However it doesn't matter to us who u in person either. When u register in this forum, ur part of our equity forum members and that matters to us. So what matters most is - u learn and contribute back. ;D

hasarel

hasarel
Manager - Equity Analytics
Manager - Equity Analytics
Hi

"If you're doing an assignment as a part of your higher studies do ur tutors spoon fed u what u want"

No because my Tutor was cable to understand what I want to learn Very Happy Very Happy

No Doubt your forum does a great job, and as an Admin your contribute appreciate. Very Happy

Thank you....

nirowat


Manager - Equity Analytics
Manager - Equity Analytics
I have posted on this just a few weeks ago

Please see
http://forum.srilankaequity.com/t25417-plc-anyone

Things have changed a bit since then

Peoples bank certainly has pushed the price collecting from the market or the other way around as raptor suggest.

Yesterday was interesting as for the forst time a big block 5 million was transacted at 17.5.
This makes me believe as think again raptor as said they are trying to keep their percentage holding after expected dilution.

Today was quite evident that once PB stop buying this will come back to base line. the key is to guess when they stop.Feel this will touch 18 as suggested, the IPO price, but a bit hesitant to jump in again at the moment till I see PB is buying some more

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Thanks nirowat for bringing the news, I didnt notice that;
http://www.cse.lk/cmt/upload_cse_announcements/4611359024822_.pdf

I think the dividend is on the cards in April. Having 5M shares means at least half of it comes as dividend to PB.

So we should wait and see what's happening ..

hasarel

hasarel
Manager - Equity Analytics
Manager - Equity Analytics
Hi,

"nirowat" , Thanks a lot for your Kind reply.

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
Now the Exchange ratio also published, is the People's continues its buying trend?

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
As at 30.09.2012 approximately 8,422,049 Shares held by the Minority Shareholders of SMLL, several acquisitions made by PLC after 01.10.2012, so at Maximum Plc need issue 25,266,147/= of its shares to conclude the transaction!

raptor


Manager - Equity Analytics
Manager - Equity Analytics
PLC bought a total of 1,556,564 shares in the open market since the last quartely report was released. That means they currently own 67,711,494 and need to buy 6,865,485 which means 20,596,455 new PLC shares need to be issued.

PB continued to buy PLC as can be seen from the latest disclosure. With the share price at its current depressed state you can bet they will continue to collect. PLC looks cheap at 13.5. I hear a dividend is coming pretty soon as well.

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
SMLL

Total shares as at 31st December 2012 - 74,576,979
Parent company PLC holds - 67,455,022 (90.45%)
Current price - 41
Stated Capital - Rs. 1,580,861,658/-

As of 31-12-12 financials;
NAV - 26.14
9 months EPS - 3.33
Annual EPS (projected using normalised eps of 1.11 per qtr) - 4.44,

At Current price - 41, this trades at P/E of 9.23 (41/4.44)
PBV = 1.57

PLC

Total shares as at 31st December 2012 - 1,635,000,160
Parent company People's Bank holds - 1,172,766,337 (75.18%)
Current price - 13.60
Dividend (0.75)(FY 12/13) -Rs. 1,170,000,120/-
Stated Capital - Rs. 12,958,000,800/-

As of 31-12-12 financials;
NAV - 11.29
9 months EPS - 1.24
Annual EPS (projected using normalised eps per qtr) - 1.65

At Current price - 13.6, this trades at P/E of 8.24 (13.6/1.65)
PBV = 1.20

When PBV is considered both are trading at an attractive price now because below 2X of PBV for finance companies are considered to be of worthy.

However, announcement of PLC amalgamation with SMLL and subsequent offer of 3 PLC shares for 1 SMLL share means,
74,576,979 SMLL shares should be multiplied by 3 making it 223,730,937 PLC shares.
But they said minority share holders, so accordingly 7,121,957 SMLL shares will have to be converted to PLC shares
[Total shares - parent shares - (74,576,979 - 67,455,022) = 7,121,957]

Which means new PLC shares - 7,121,957 x 3 = 21,365,871 will be added to the existing 1,635,000,160 shares.


What will happen to the Stated capital and share price in the market?

Literary speaking, Stated Capital of Rs. 12,958,000,800/- of PLC (as at 31st December 2012) represents 1,635,000,160 shares.

Similarly Stated Capital of Rs. 1,580,861,658/- of SMLL represents 74,576,979 shares.

So new stated capital should be;
(12,958,000,800 + 1,580,861,658) - 14,538,862,458.

But the above represents how many shares now?

Is it 1,635,000,160 + 21,365,871 = 1,656,366,031 (1.65 Bil)????

Then what will happen to the parent shares?

Is this mean somewhere around 12-12.70 is the new market share price of PLC??????????

Hope someone can clarify where the share price should stand after the amalgamation....

raptor


Manager - Equity Analytics
Manager - Equity Analytics
Stated capital is just the face value of the shares times the amount of shares outstanding, it doesnt have anything to do with market value of a share.

One way to look at it is SMLL paid 3.75 as a dividend last year, PLC paid 0.75 so if we times that by 3, SMLL shareholders will get 2.25, which is obviously far less so they seem to be getting a bad deal.

Assuming SMLL's EPS is 4.44 (I am not a fan of normalising, I prefer using LTM but cannot be asked to go look for the numbers), PLC will be buying 9.21% of SMLL earnings which it doesn already own which is an EPS of 0.41 per an SMLL share. This needs to be divided by 3 given PLC is paying 3 shares for 1 in SMLL. So its adding 0.13 in earnings to each PLC share which corresponds to a total EPS of 1.76 post the acquisition for each PLC share (I have adjusted for the increased PLC shares given to SMLL shareholders). If you assumed fair PE is 8.24 share price should be 14.54. Obviously this valuation depends on what one considers a fair PE is.

anubis


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@small: when you calculated the new number of shares you took:

1,635,000,160 + 21,365,871

This includes, old PLC shares and the newly issued PLC shares (for minority share holders of SMLL)

But don't you have to add the old SMLL shares as well (74,576,979) since after the merger, all of those shares will also belong to the newly formed company? (I'm not sure of this - haven't been in touch)

Cheers!

anubis


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
OK, adding SMLL shares into the total doesn't seem right - since the two shares have different price levels. My bad.

Cheers!

raptor


Manager - Equity Analytics
Manager - Equity Analytics
Nope I am not adding those as they are already owned by PLC, they arent going to issue new shares to themselves. If they issue themselves shares for those then who is going to own SMLL? they will be swapping their holding in SMLL for PLC shares. All they are doing is buying out the 9% they dont own and therefore they will hold 100% of SMLL with no minority shareholders. SMLL will become a private subsidiary of PLC or will cease to exist at all and the equity of SMLL will be added to that of PLC.

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