DIST results & Ethanol

rainmaker · 1 DIST results & Ethanol Fri Mar 22, 2013 12:09 pm

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Impressive result given the expropriation would have hit the firm.
Pelawatte's entire ethanol output was being purchased by DIST and hence escaping the 275% tax. 1/3 of the DIST requirement was from Pelawatte.

Even after the expropriation, the result is very impressive. However now the uncertainty is with regards to local ethanol production being able to keep up with supply.

DIST is a big stock with little movement due to the unfavorable news so far - it is worth watching.

http://www.chemicalsinfomart.com/sri-lanka-bans-ethanol-import/

rainmaker · 2 Re: DIST results & Ethanol Sat Mar 23, 2013 10:13 am

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Seems not many members are interested in this blue chip Wink

Slstock · 3 Re: DIST results & Ethanol Sat Mar 23, 2013 11:51 am

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DIST had a good run from RS 120 to Rs 195. Think it is in the consolidation stage now and may drop a bit more in price. Long term DIST is a valuable share along with its portfolio . But a thing that worries me a bit is the plight of DIST management someday after the aging genuis HJ. Already there are some internal issues with one of the investment holding company management (i forget Milford or Melstacorp )

UKboy · 4 Re: DIST results & Ethanol Sat Mar 23, 2013 4:13 pm

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slstock wrote:DIST had a good run from RS 120 to Rs 195. Think it is in the consolidation stage now and may drop a bit more in price. Long term DIST is a valuable share along with its portfolio . But a thing that worries me a bit is the plight of DIST management someday after the aging genuis HJ.

Agree with you.
There are may be a number of good reasons to buy DIST but I would not touch it for the same reason.

I doubt neither his living business partners nor his children are capable of what HJ can do.

Once a well reputed businessman told HJ that he wants to expand his business like DIST. Then Harry did ask few questions from this guy. I cannt exactly remember all but quite similar to below few questions.

No1. Can you remember your car number plate?
No2. How many vehicles you have in your company?
No3. How much fuel do you generally use per month?

The businessman said No to all his questions. HJ (sarcastically) smiled & said that before even think to expand your business you need to find out those.

Moral of HJ’s story. You have to have a grip of every single thing in your company.

His business model is different to many other leading companies in Sri Lanka. Unless a very strong character, it’s difficult to implement his way of work.

No matter how controversial he is, there’s a lot we can learn from uncle J..

Slstock · 5 Re: DIST results & Ethanol Sat Mar 23, 2013 7:36 pm

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Wonder what DIST strategy was to invest a lot of money in JKH for a small stake ( their SLIC refund)

They could have bought a few smaller companies and guided them to make better profit margins in the long term.

rainmaker · 6 Re: DIST results & Ethanol Sun Mar 24, 2013 7:42 am

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slstock wrote:Wonder what DIST strategy was to invest a lot of money in JKH for a small stake ( their SLIC refund)

They could have bought a few smaller companies and guided them to make better profit margins in the long term.

From memory when Morgan Stanley released the documents about CTCE, DIST applied for it.

Right now they have to protect their core business which is DIST. Without DIST the empire is finished. They are fast losing traction because of cheaper local producers and the tax hikes. Interesting times for DIST......

Slstock · 7 Re: DIST results & Ethanol Sun Mar 24, 2013 9:48 am

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Again if for long term why buy JKH at rs 220-225 ( if I rememebr right ) without looking at other options with better return for investment . On short term capital gain they would have close to 10% now. If for short term it is different story but for long term ( am long at 5 years atleast) ?

quote="rainmaker"]

slstock wrote:Wonder what DIST strategy was to invest a lot of money in JKH for a small stake ( their SLIC refund)

They could have bought a few smaller companies and guided them to make better profit margins in the long term.

From memory when Morgan Stanley released the documents about CTCE, DIST applied for it.

Right now they have to protect their core business which is DIST. Without DIST the empire is finished. They are fast losing traction because of cheaper local producers and the tax hikes. Interesting times for DIST......[/quote]

rainmaker · 8 Re: DIST results & Ethanol Sun Mar 24, 2013 9:52 am

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I don't know. But JKH is a stock which very few understand.

Also note how there is classic stub arbitrage. John Keells Plc has not kept up with John Keells Holdings.

Slstock · 9 Re: DIST results & Ethanol Mon Mar 25, 2013 5:15 am

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JKL's limited scope for development and the share liquidity might be isssues. But when a real bull start all these shares
will get attention.

Right now many good shares are sidelined and have not moved big time for years. right now the focus seems to be on index moving high cap blue chips.

rainmaker wrote:I don't know. But JKH is a stock which very few understand.

Also note how there is classic stub arbitrage. John Keells Plc has not kept up with John Keells Holdings.