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Re: What will happen PLC.N0000 Price during Jan & Feb Thu Jan 31, 2013 7:03 pm
Re: What will happen PLC.N0000 Price during Jan & Feb Thu Jan 31, 2013 7:16 pm
Re: What will happen PLC.N0000 Price during Jan & Feb Thu Jan 31, 2013 7:31 pm
Re: What will happen PLC.N0000 Price during Jan & Feb Thu Jan 31, 2013 8:46 pm Re: What will happen PLC.N0000 Price during Jan & Feb Thu Jan 31, 2013 9:25 pm
Re: What will happen PLC.N0000 Price during Jan & Feb Thu Jan 31, 2013 11:01 pmAntonym wrote:Based on today's closing prices, the Market Capitalization of PLC.N* (the merged entity) would be Rs 24.274 billion.
This would make it among the 20 largest companies in Sri Lanka, bigger than even C T Holdings or NDB or Hayleys.
Based on 31.12.2012 Balance Sheets of both companies, the NAV per share of PLC.N* would be Rs 10.97.
Based on weighted average market price of Rs 13.61, the Price-To-Book Ratio would be 1.24x.
Earnings Per Share would be approx Rs 1.97 and P/E Ratio would be 6.90x.
Here's a hint for the arbitragers: You could have locked into PLC.N* at less than Rs 13.00 today, which is a decent price - despite klpfernando's valid concern. How? Remember the Dividend impact (SMLL, Rs 2.25) while determining each company's fair price. It's not straightforward 3:1...
Re: What will happen PLC.N0000 Price during Jan & Feb Fri Feb 01, 2013 7:08 am
anubis wrote:OK, I think I get it now. Thanks for the explanation
13.50 x 3 = 40.50 (close to current SMLL price)
So, SMLL would be good to collect below 40.50 as it stands now. However, if PLC.N goes further down, value of SMLL should also go down... (given the conversion).
I'm thinking of starting to collect PLC.N directly but slowly. Would be fantastic if it comes further down...
As for the fair value, I guess both PLC.N and SMLL.N are fairly valued at current prices. So, 13.50 would be an OK price to collect PLC.N (this is just a rough idea). But I'd wait a bit longer to start collecting PLC.N given the existing momentum. Once PB completely stops buying, the price of PLC.N may come further down (just a guess).
Cheers!
Re: What will happen PLC.N0000 Price during Jan & Feb Fri Feb 01, 2013 8:35 am Re: What will happen PLC.N0000 Price during Jan & Feb Fri Feb 01, 2013 9:25 am
@raptor: You are right; I was double counting. The Market Capitalization would be Rs 21.508 billion.raptor wrote:How did you get a combined market cap of Rs 24bn? PLC already owns 91% of SMLL so its already built into its share price. The completely merged entity would be worth PLC now +9% of SMLL's current market cap, i.e what it doesnt already own which would be around Rs270m which means the combined entity is worth Rs 21.5bn.
You cannot just add them together as PLC already owns 91% and therefore is consolidating SMLL into its accounts on line by line basis rather than under the equity method given their holding. You are almost bouble counting here given that 91% of SMLL is already included in PLC's accounts.
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