Kegalle cash per share Rs. 72.00

salt · 1 Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 5:56 pm

salt

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Kegalle dividend should be very high this time
The way RPMC is buying it gives an indication
Its cash rich, short term investments LKR 2,900 millions & Long term investments LKR 557 million. Long term investments in group companies.

Short term investments in treasuries & repos.
If this is correct, cash per share is LKR 72.00.
They might give special dividend ( handsome) once they complete the acquisition.

Even this year EPS is not bad, LKR 18.00 per share

http://www.cse.lk/cmt/upload_report_file/711_1339063116434.pdf

http://www.cse.lk/cmt/upload_report_file/711_1360318417078.pdf

Last edited by salt on Tue Apr 09, 2013 6:29 pm; edited 1 time in total

Slstock · 2 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 6:16 pm

Slstock

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Or will they save to pay for the Wage increase gratuity?

Anyway this is the king in the sector. Has some hidden assets as well.

salt · 3 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 6:35 pm

salt

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@slstock wrote:Or will they save to pay for the Wage increase gratuity?

Anyway this is the king in the sector. Has some hidden assets as well.

You mean to say retirement benefit obligation will increase from current 400 million to Rs. 2.2 billion? Is it sensible?

Slstock, you are a senior member... Make your own calculation and present us figures
This wage bill also a nonsense headline like BFL' s so called BOI. Farm in Puttalam.

Slstock · 4 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 6:57 pm

Slstock

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All I am saying is that there is a possiblity for KGAL to not go for a massive dividend as there is extra expenses due to wage issue. They might they might not.

Who said anything about gratuity is going to be 2.2 billion.

Look at 2011 June quarter report how they handled the wage issue.

KGAL is cash rich, Yes. If you search forum I have commented on KGAL cash rich position several times.
I already said to me this is the king of the sector.

We can't say they will definetly pay a huge dividend because they are cash rich and have investments. RENU is in almost the same boat but they are stingy.

Also if you look at KGAL dividend history they have not been consistent. Last time yes they paid rs 7.5 . But time before that? Maybe this time they will keep the new high dividend trend going.

On consistency matter, I see 1 other rival plantation company giving consistent % wise high dividends over the years.

RPC collecting can be for dividend or maybe they have other plans due to Kgal hidden asset ;-)

This is only giving a different view. They may pay a high dividend.

You don;t have get upset like this becaucse I gave a different thought. I will be happy if they give a massive dividend.
I already hold some other plantation sector shares. And any sector run will benefit me.

@salt wrote:

@slstock wrote:Or will they save to pay for the Wage increase gratuity?

Anyway this is the king in the sector. Has some hidden assets as well.

You mean to say retirement benefit obligation will increase from current 400 million to Rs. 2.2 billion? Is it sensible?

Slstock, you are a senior member... Make your own calculation and present us figures
This wage bill also a nonsense headline like BFL' s so called BOI. Farm in Puttalam.

Jake Sully · 5 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:04 pm

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Lunu's initial argument is valid. I.e. when a related party keeps on buying means, most most most of the time dividends going to be lovely. BUT they don't have a consistent dividend record.

Jake Sully · 6 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:06 pm

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Of course they will pay dividend but will it be same as last year?

Slstock · 7 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:08 pm

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Also note RPC has been buying KGAL from time to time. I remember in 2011 august to septemebr they bought KGAL at Rs 140+

Also when the share price was around Rs 80 in early 2012.

@Jake Sully wrote:Lunu's initial argument is valid. I.e. when a related party keeps on buying means, most most most of the time dividends going to be lovely. BUT they don't have a consistent dividend record.

Jake Sully · 8 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:10 pm

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Same situ for LHL. Hope they will pay more than last year as the RP is buying continuously.

Gaja · 9 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:27 pm

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Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

Slstock · 10 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:28 pm

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Gaja,

I already hinted one possible reason ;-)

@Gaja wrote:Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

Gaja · 11 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:33 pm

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@slstock wrote:
Gaja,

I already hinted one possible reason ;-)

@Gaja wrote:Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

Are u referring this

Hmm, sadly I sold my KGAL for a need but KGAL is real value share in the sector. Hmm is RPC looking at a hidden asset in KGAL ;-) ?

Slstock · 12 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:37 pm

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Well I mentioned the same in this post also about the hidden asset . Actually it is not that hidden if one looks.

I did not want to say it outright and give all info . No fun right. Leave people interested do some work themselves right Smile

@Gaja wrote:

@slstock wrote:
Gaja,

I already hinted one possible reason ;-)

@Gaja wrote:Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

Are u referring this

Hmm, sadly I sold my KGAL for a need but KGAL is real value share in the sector. Hmm is RPC looking at a hidden asset in KGAL ;-) ?

salt · 13 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 8:20 pm

salt

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@slstock,
Such a long explanation. To be frank, this whole argument about wage is fallacy
It's nothing extraordinary, this plantation industry is one of the oldest industry & wage has been going up throughout the history. We knew about this since our childhood. Industry is however coping with it.

I agree with you on rest of the thing..

Chinwi · 14 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 9:39 pm

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@salt wrote:@slstock,
Such a long explanation. To be frank, this whole argument about wage is fallacy
It's nothing extraordinary, this plantation industry is one of the oldest industry & wage has been going up throughout the history. We knew about this since our childhood. Industry is however coping with it.

I agree with you on rest of the thing..

In this case I agree with salt 100%.

Few weeks ago, I did some rough study on paper for some plantation companies to see whether there is a mammoth impact in their outcome due to this wage issue.

I took 6-7 year quarterly data for consideration and management costs, other costs , revenue etc. were tabled separately to study.

Surprisingly the impact by the so called wage devil was negligible for some companies. There were some other reasons for up and down in time to time in their bottom-line.

I cannot give exact details or names of the stocks. I did it in very lazy manner to verify my thinking. Because I had the suspicion about this so called wage devil for many months.

This misconception generalized to the entire industry could be a reason for the delaying of plantation rally.

Jiggysaurus · 15 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 9:49 pm

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@Chinwi wrote:

Few weeks ago, I did some rough study on paper for some plantation companies to see whether there is a mammoth impact in their outcome due to this wage issue.

Surprisingly the impact by the so called wage devil was negligible for some companies. There were some other reasons for up and down in time to time in their bottom-line.

If this is such a small minor matter why did the plantation companies suffer so much during the last wage hike?
Maybe you need to do your calculations again because even a 10% increase in COGS wipes out the profit of the tea companies. And on top of that the gratuity implications also need to be considered.

Slstock · 16 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 4:34 am

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BTw, I never said this wage issue has to be overblown. Our discussion was on the possibility of a hefty dividend by KGAL
( which is still possible) which I just gave an alternative view with some reason.

Yes over long term these companies survived.

However this wage issue will impact some companies more than others in the short term. KGAL is one of them who will recover faster due to major exposure to rubber and better profit margins. The impact of Cost of production per Tea Kilo is what we need to look at. Tea is the most labour intensive and profit margins are much thinner .

@salt wrote:@slstock,
Such a long explanation. To be frank, this whole argument about wage is fallacy
It's nothing extraordinary, this plantation industry is one of the oldest industry & wage has been going up throughout the history. We knew about this since our childhood. Industry is however coping with it.

I agree with you on rest of the thing..

suja · 17 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 12:24 pm

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Hi can anyone advice me when the assumed date devident will be paid this year for Kegall

rainmaker · 18 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 1:15 pm

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Have you checked the articles of association.

RPC should delist the firm and keep it private. The takeover act has something about a % you can buy each year without breaching the mandatory offer. They would be tactically buying as long as the highest price in the last xxx months is cheap.

But it takes a rainmaker to tell you this Rolling Eyes

innam · 19 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 1:56 pm

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How did you come up with a figure of 72 per share?

The ST and Cash balance is 2.4 billion which works out to 95 per share but out of this the debt load of 1.1 billion should be deducted leaving a net cash balance of 1.26 billion which 50 per share in cash (big difference from 72 per share headline)

mark · 20 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 1:58 pm

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OMG INNAM :O Very Happy

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Kegalle cash per share Rs. 72.00

1 Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 5:56 pm

salt

2 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 6:16 pm

Slstock

3 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 6:35 pm

salt

4 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 6:57 pm

Slstock

5 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:04 pm

Jake Sully

6 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:06 pm

Jake Sully

7 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:08 pm

Slstock

8 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:10 pm

Jake Sully

9 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:27 pm

Gaja

10 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:28 pm

Slstock

11 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:33 pm

Gaja

12 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 7:37 pm

Slstock

13 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 8:20 pm

salt

14 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 9:39 pm

Chinwi

15 Re: Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 9:49 pm

Jiggysaurus

16 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 4:34 am

Slstock

17 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 12:24 pm

suja

18 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 1:15 pm

rainmaker

19 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 1:56 pm

innam

20 Re: Kegalle cash per share Rs. 72.00 Wed Apr 10, 2013 1:58 pm

mark

21 Re: Kegalle cash per share Rs. 72.00

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