Should I Buy These Plantation Shares

greedy007 · 1 Should I Buy These Plantation Shares Tue Apr 02, 2013 7:54 am

greedy007

Senior Manager - Equity Analytics

Posts : 320
Equity Stars : 5246
Reputation : 23
Join date : 2011-07-28

BALA

KAHA

MASK

BOPL

AGAL

knockknobbler · 2 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 12:37 pm

knockknobbler

Manager - Equity Analytics

Posts : 178
Equity Stars : 4492
Reputation : 12
Join date : 2013-02-21

Buying Plantation stocks is a very tricky thing ! Some aspects to be considered.

# It's not advisable to think beyond a quarter. Everything will change with the announcement of quarterly performance, basically the profit figure. .
# Out of around 15 stocks,you may have selected above 5 , for some reason. There are tea, rubber and palm oil. There was a time rubber, Palm oil are more profitable compared to tea. If it is so, try to include stocks which have rubber / palm oil plantations. .
# every two/ three years , this labor wages issue will prop up. If it is coming up in this year , better not to touch. consider the stock prices after the issue is solved.
# Even local funds hesitate to invest in plantation. so the price drivers are mostly, retailers. To move price upwards ,there has to be a general upward trend in the market.
# Just see following table help you, If it is not clear ( can't insert the excel table), send me a private message/ e-mail ,I'll attach and sent.

YTD-2013 MOM MOM MOM YTD-2012 YTD-2011
Mar Feb Jan 31/12/2012 1/1/2012
15 TPL.N0000 26.20 9% 5% -2% 6% -19% -36%
15 HOPL.N0000 26.50 8% -2% 8% 2% -35% 4%
15 KGAL.N0000 112.00 8% -1% 7% 1% -1% -35%
15 KVAL.N0000 85.20 7% -1% 3% 4% -11% -44%
15 KAHA.N0000 34.70 5% 4% 13% -11% 12% 5%
15 AGAL.N0000 33.90 4% 2% 3% -2% -34% -21%
15 MASK.N0000 12.10 -5% -7% 2% 1% -37% -28%
15 BOPL.N0000 11.50 -5% -10% 2% 4% -15% -30%
15 BBH.N0000 17.20 -5% 1% -15% 10% 7% -35%
15 WATA.N000011.20 -6% -7% -3% 4% -16% -49%
15 ELPL.N0000 17.20 -7% 1% -5% -3% -23% -11%
15 MAL.X0000 4.00 -9% -9% -8% 9% -8% -23%
15 MAL.N0000 4.20 -11% -7% -10% 6% -15% -33%
15 UDPL.N0000 25.00 -14% -12% -2% 0% -9% -32%
15 BALA.N0000 33.60 -15% -7% -7% -2% 38% -50%
15 MADU.N000012.30 -21% 1% -13% -10% -6% -5%
15 KOTA.N000054.00 -27% 4% -9% -23% 15% -45%

Slstock · 3 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 12:47 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13586
Reputation : 1158
Join date : 2011-01-22

One thing anybody in the forum did not mention is that since the last wage hike ( 2 years ago) plantation shares kept on dropping and they never had a real run. But yet most companies improved their performance and NAV. I really feel plantation should have a small run atleast but this wage issue seems to be in the back of some peoples mind.

If you are buying the stocks above , it might good to anaylze the reason you picked them . Also look at their diversifcation . Incase the wage issue is not good, how much dent will these companies have in their profits. Best to look at past history . Also look at past dividend history.

When you do you will see some companies survived better.

sahan8896 · 4 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 12:57 pm

sahan8896

Assistant Vice President - Equity Analytics

Posts : 933
Equity Stars : 5978
Reputation : 53
Join date : 2011-08-27

Somethings going on with KGAL,lBig buying and selling. Question

Slstock · 5 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 12:58 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13586
Reputation : 1158
Join date : 2011-01-22

Probable Dividend time . RPC is buying as we saw.

sahan8896 wrote:Somethings going on with KGAL,lBig buying and selling.

Jake Sully · 6 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 1:33 pm

Jake Sully

Manager - Equity Analytics

Posts : 180
Equity Stars : 4528
Reputation : 6
Join date : 2013-02-24

Out of the above 5 Companies, only Agalawatta is a good dividend stock.
Will they pay the same amount this year? I dont see anything in their account as to why they shouldn't.
Anybody disagree?

Slstock · 7 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 1:34 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13586
Reputation : 1158
Join date : 2011-01-22

Careful about last quarter profit for AGAL. It is not earned profit. It is revaluating asserts.

Jake Sully wrote:Out of the above 5 Companies, only Agalawatta is a good dividend stock.
Will they pay the same amount this year? I dont see anything in their account as to why they shouldn't.
Anybody disagree?

Jake Sully · 8 Re: Should I Buy These Plantation Shares Tue Apr 02, 2013 1:51 pm

Jake Sully

Manager - Equity Analytics

Posts : 180
Equity Stars : 4528
Reputation : 6
Join date : 2013-02-24

slstock wrote:Careful about last quarter profit for AGAL. It is not earned profit. It is revaluating asserts.

Jake Sully wrote:Out of the above 5 Companies, only Agalawatta is a good dividend stock.
Will they pay the same amount this year? I dont see anything in their account as to why they shouldn't.
Anybody disagree?

Ya but that revaluation they did last year also. Even after that they managed to pay a very decent div. Anyway, can see the real picture from audited accounts once released.