FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» What will happen tomorrow?
by Kipling Today at 6:34 am

» GLAS will be winner with Super Gain.
by sandamal Today at 6:11 am

» The market is not out to “get” you but is just flowing along, and your position just happens to be carried along with it.
by Asoka Samarakone Yesterday at 9:57 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 8:01 pm

» DIPD/HAYC/HAYL
by stocknoob Yesterday at 6:55 pm

» Growing Fear
by Mr. X Yesterday at 4:55 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by Wickyz Yesterday at 12:54 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by Mr. X Yesterday at 12:40 pm

» LDEV LDEV LDEV
by Eranga87 Yesterday at 10:27 am

» No trader can flee from making a mistake. It’s just that you need to be careful about not repeating your mistakes.
by Mithooshan Yesterday at 7:42 am

» SWISSTEK (CEYLON) PLC (PARQ.N0000)
by Chithi Mon Apr 19, 2021 7:45 pm

» ROYAL CERAMICS PLC (RCL.N0000)
by Jana Mon Apr 19, 2021 6:14 pm

» US dollar trading lower, euro near new high
by target1 Mon Apr 19, 2021 1:38 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Equity Win Mon Apr 19, 2021 1:23 pm

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by Thushara Ayya Mon Apr 19, 2021 11:59 am

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by Eranga87 Sun Apr 18, 2021 4:12 pm

» CIC HOLDINGS PLC (CIC.N0000)
by abey Sat Apr 17, 2021 9:07 pm

» First capital holdings CFVF.N0000
by invest thinker Sat Apr 17, 2021 4:46 pm

» Lanka Walltile PLC Investment Case
by judecroos Sat Apr 17, 2021 8:55 am

» Which is the best at current market condition ? ( At least 30% within 30 Days)
by judecroos Sat Apr 17, 2021 8:39 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Market may down another 550 points

Market may down another 550 points

Go to page : Previous  1, 2, 3

Go down  Message [Page 3 of 3]

41Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 11:15 am

dhanurrox


Vice President - Equity Analytics
Vice President - Equity Analytics
@dudi wrote:Teller today market up no. I sold my pf because of you.aiyo what is happening?
nikan boru nokiya hitapan ban.Very Happy

42Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 11:21 am

Jana1


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Teller wrote:Dear chinwi ,I never sell my stocks in a loss.people say various names like average method,sell high in a loss and buy in bottom what ever .I do my own way.don't make panic because of me.I stated my own idea after my carefully studies.don't be a follower.get the knowledge then no one can play with you.don't let them others to make you pool.I never wanted to play with your hard earned money.

"This is the time to exit on stock market and wait.market will(AsI) may down another 550 points surely.wait and see.no need to argue."

Doesn't it contradict??? Before you advise please stand clear properly.... You became joker today... I am not sure about the market, up and downs are cycles, but your stand just suddenly changed when mkt took u turn.. Yesterday asctally mkt was up if JKH was not traded as it dragged 20 points. U simply thought mkt is down and put useless posts on forums.. You also learn from failures- shouldn't start any topic without proper analysis...

43Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 11:42 am

dudi


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Yes Jana1.you are right. Teller is a useless joker. I sold my pf at a loss.aparade

44Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 12:14 pm

besthope


Manager - Equity Analytics
Manager - Equity Analytics
@dudi wrote:Yes Jana1.you are right. Teller is a useless joker. I sold my pf at a loss.aparade
 Teller maybe a useless joker but you are idiot. even your name is no ? i dud

45Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 12:28 pm

dudi


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
dudi is the short form of dudliy.your definition is wrong

46Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 5:09 pm

Humble


Manager - Equity Analytics
Manager - Equity Analytics
Nonsense! There have been excellent news during the last few days - we also have an attractive market P/E. This is the time to invest

47Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 5:10 pm

freebird


Manager - Equity Analytics
Manager - Equity Analytics
now is the time that you can start buying best counters. today onward market keep green for about 3 weeks. then you can see a red market. on and off there may be red days.but ..............GL for all

48Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 6:10 pm

Teller

Teller
Moderator
Moderator
Of course market will be attractive but not at the moment.not in this year. Most of the shares are reaching 52 week low prices.it's better to keep attention buy in lowest for a period of one year. More chances to collect good shares in coming days. Do the home work to identify total return is more than 10% or higher.find out the companies which give regular dividends.when TJL trades at 7.00 ,there dividend percentage from the market price is 28%.when CTC trades 500.00 their percentage is 9 (45/500)*% , consider more in dividends. Agree that paying more dividends like sucking the blood. But if company doesn't have more reinvestments for what internal financing.we have to take the profit out for time to time.it's just like a liquidity of your investment. We want a cash generated business, people think that invest on shares like investment on lands.some times lands give additional income rather than capital gain .suppose if you buy a coconut land you will get coconuts.you can sell those regulary and earn cash than getting total land sale. Share is a part ownership of a company. We expect profit as investors without exchanging the ownership. So you will get attractive gains by investing with high dividend payout companies.


_________________




Teller said is said..

49Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 6:48 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
sixpence none the richer..

Guys let Teller keep on telling.. Ok take out the market up/down non-sense, what Teller tells us abt dividends is true.. A good explanation too..

Some consider dividend stocks, u stick to JKH, LLUB, NEST like shares cuz they issue dividends 4 times a year.. Multinationals want to take out money to their home country so a good portion of earnings comes as a div yearly.
Now u can find such companies and buy some shares.

Then there are companies affected by seasonal effects.. Like plantations, hydro, etc... Their growth is not tremendous but in some years they come up really better.. so we need to enter these in these cycles.

Apart from that there are companies with steady growth - qtr to qtr or YOY they show revenue growth.. These are good pics - some call them gems. BFL was one of a kind those days as it didnt have much debts to pay.

Some prefer easy understood business models - so its easy to track down the growth Wink

50Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 9:13 pm

The Alchemist


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Teller wrote:Of course market will be attractive but not at the moment.not in this year. Most of the shares are reaching   52 week low prices.it's better to keep attention buy in lowest for a period of one year. More chances to collect good shares in coming days. Do the home work to identify total return is more than 10% or higher.find out the companies which give regular dividends.when TJL trades at 7.00 ,there dividend percentage from the market price is 28%.when CTC trades 500.00 their percentage is 9  (45/500)*% , consider more in dividends. Agree that paying more dividends like sucking the blood. But if company doesn't have more reinvestments for what internal financing.we have to take the profit out for time to time.it's just like a liquidity of your investment. We want a cash generated business, people think that invest on shares like investment on lands.some times lands give additional income rather than capital gain .suppose if you buy a coconut land you will get coconuts.you can sell those regulary and earn cash than getting total land sale. Share is a part ownership of a company. We expect profit as investors without exchanging the ownership. So you will get attractive gains by investing with high dividend payout companies.

Teller, Re Dividends - 

1. Firstly, i think you may be dreaming if you think you can buy CTC @ Rs 500 or TJL @ Rs 7.
even if TJL were to be at Rs 7/- the Dividend Payout would have to be Rs 2.50 for you to have a dividend yield of 28 %. do you honestly believe they can pay such a dividend (when their FY 2013 EPS is Rs 1.55) and even if so, will you be able to get the share at Rs 7 ?   

2. Foreign Funds come to Frontier Markets like Sri-Lanka and like to invest in Multinational Companies like NEST, CTC, LLUB amd other Blue Chips Like JKH etc not for the Dividends. They come as a Portfolio diversification / allocation strategy looking for Capital Gains, paying the premiums for illiquidity etc, due to the favourable Risk / Reward trade offs. just look at Janus. they bought JKH @ 160 some time back. They didnt buy expecting a Rs 3 Dividend. For a Foreign Fund, the exchange rate risk they take due to a Rupee devaluation means they need to look beyond dividend yields.

3. Even for a local Investor, the Dividends yields are very unattractive when you consider Inflation and the Price Premium for Asset Value. Why should i pay 3,4, 10, 20 ,30 times book value to get a dividend yield which is way below the Inflation rate. It is the same as buying a 1 million (face value) FD paying 30 % interest for 10 Million to get a 3 % dividend yield when inflation is much higher. unless Of course you buy a share like JINS, decent Dividend Yield, Price close to BV and low p/e. but this is rare. you have to look for similiar stocks and not expect shares like TJL & CTC to half in value and become attractive dividend yielders as it simply wont happen for that exact reason. (i.e. everybody will demand it for yield especially if interest rates are low).        

4. Company Dividend Policy - varies from company to company. Just because a company pays out 90-95 % of their profits as dividends may not necessarily be a good thing.They may not need the cash for capex, expansion  or growth. maybe they are in mature industries. and just bcos they pay 90-95 % of their profits, the share price may be high and thus the actual dividend yield low. Other companies that do not pay good dividends maybe re-investing their internally generated cash aggresively and growing their business, revenues and assets. The dividends foregone today may lead to capital gains in the future. there maybe some companies stuck in the muddle of both above strategies. bottom line, looking for dividends in a high inflation frontier stock market may not make very much sense especially for retail investors & traders. sometimes you will also observe how ex dividend, stocks adjust downward more than the actual dividend paid like for eg Sampath.

51Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Thu Jun 27, 2013 10:19 pm

Vptilak


Manager - Equity Analytics
Manager - Equity Analytics
slstock, without giving any valid reason Teller says market would drop by another 550 points. Why not you make your attention to this statement and request him to make statement with valid reasons and so on ?Poor members (new to stock trading) will sell their PF with a loss otherwise.

52Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 8:26 am

Teller

Teller
Moderator
Moderator
https://i.servimg.com/u/f82/17/82/21/04/asi14.png , pls ref above, unfortunately I can't upload drafts through my system. I didn't predict the market my own way. All economies are performing towardsrds to crisis.US economy 1.8% slow down.SL economy didn't perform as expected in last quarter .commodities market collapsed.balance of payment crisis on the way.plantation wage hike on the way.market PE ratio is attractive but are satis with the 75% of finance companies performances.leading finance company in kegalle's struct with their pawning .no one want to re pay and save the jeellery.they almost advanced 48,0000 to 54,000 . But now value decreased to 44,000.they don't have liquidity even from an auction,Boc and peoples bank have advanced billions even LB finance.rupee depreciation and 10% import tax so far make them happy but how long.said finance company increased the pawning interest rate 36% per annum. We are talking any 15% lending rate now .65% of their pawning jwelleries has to go an auction. The loss may be millions.it's a listed company. Another company has mote than 2000 ceases vehicles in their yard. They don't get any profit even can't recover the cost.also another listed finance company has given billions as micro credit in rural areas has faced a major recovery problem.they give loans 28% interest per annum (some times effective rate goes 28-44%) with out any assets.they make 3 small groups * 7 groups and approve the loan. Repayment is typically twice a week.so now what happend 4-6 micro finance companies are approving loans for same group.so they take loans and use for consumptions rather than investing a new business.no funds to repay. What a use of a legal action .it will take years to recover. So the systems are full of mess now. 60% Sri lankans jwelleries in bank or in finance companies.


_________________




Teller said is said..

53Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 8:39 am

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Teller wrote:https://i.servimg.com/u/f82/17/82/21/04/asi14.png       , pls ref above, unfortunately I can't upload drafts through my system. I didn't predict the market my own way. All economies are performing towardsrds to crisis.US economy 1.8% slow down.SL economy didn't perform as expected in last quarter .commodities market collapsed.balance of payment crisis on the way.plantation wage hike on the way.market PE ratio is attractive but are satis with the 75% of finance companies performances.leading finance company in kegalle's struct with their pawning .no one want to re pay and save the jeellery.they almost advanced 48,0000 to 54,000 . But now value decreased to 44,000.they don't have liquidity even from an auction,Boc and peoples bank have advanced billions even LB finance.rupee depreciation and 10% import tax so far make them happy but how long.said finance company increased the pawning interest rate 36% per annum. We are talking any 15% lending rate now .65% of their pawning jwelleries has to go an auction. The loss may be millions.it's a listed company. Another company has mote than 2000 ceases vehicles in their yard. They don't get any profit even can't recover the cost.also another listed finance company has given billions as micro credit in rural areas has faced a major recovery problem.they give loans 28% interest per annum (some times effective rate goes  28-44%) with out any assets.they make 3 small groups * 7 groups and approve the loan. Repayment is typically twice a week.so now what  happend 4-6 micro finance companies are approving loans for same group.so they take loans and use for consumptions rather than investing a new business.no funds to repay. What a use of a legal action .it will take years to recover. So the systems are full of mess now. 60% Sri lankans jwelleries in bank or in finance companies.



hutaa..... lots of points...... all sided with negative side.... !!!

ammapa machan rupiyalak wath CSE eke invest karanna hoda nadda......

mechcharama notorious kiyala hithune nathath mata... in next 30days is crucial...!!!
i hope good time will come to buy kiyala but... last two days... little green lights came but yet not sure...!!!

*pls I am yet to be an expert in investing CSE! GL! study

54Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 8:57 am

manula


Vice President - Equity Analytics
Vice President - Equity Analytics
@Teller wrote:https://i.servimg.com/u/f82/17/82/21/04/asi14.png       , pls ref above, unfortunately I can't upload drafts through my system. I didn't predict the market my own way. All economies are performing towardsrds to crisis.US economy 1.8% slow down.SL economy didn't perform as expected in last quarter .commodities market collapsed.balance of payment crisis on the way.plantation wage hike on the way.market PE ratio is attractive but are satis with the 75% of finance companies performances.leading finance company in kegalle's struct with their pawning .no one want to re pay and save the jeellery.they almost advanced 48,0000 to 54,000 . But now value decreased to 44,000.they don't have liquidity even from an auction,Boc and peoples bank have advanced billions even LB finance.rupee depreciation and 10% import tax so far make them happy but how long.said finance company increased the pawning interest rate 36% per annum. We are talking any 15% lending rate now .65% of their pawning jwelleries has to go an auction. The loss may be millions.it's a listed company. Another company has mote than 2000 ceases vehicles in their yard. They don't get any profit even can't recover the cost.also another listed finance company has given billions as micro credit in rural areas has faced a major recovery problem.they give loans 28% interest per annum (some times effective rate goes  28-44%) with out any assets.they make 3 small groups * 7 groups and approve the loan. Repayment is typically twice a week.so now what  happend 4-6 micro finance companies are approving loans for same group.so they take loans and use for consumptions rather than investing a new business.no funds to repay. What a use of a legal action .it will take years to recover. So the systems are full of mess now. 60% Sri lankans jwelleries in bank or in finance companies.


so simple terms... good time to buy ne.. (only thing not buy for credit).

55Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 9:26 am

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@ Teller.

I am working closely with micro Baking sector, still our Recovery rate is very high some times it goes above 100% due to small amounts being re payed early. Also our operational team is in touch with them every day to make sure the given money is utilized in the expected business. Admin. cost is quite high.

Still the industry is very lavish and no any alarming. But yes in 3-5 years their will be a saturation in the industry of Gov. failed to take corrective actions.

Dont make people fear by creating stories.

56Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 10:38 am

Teller

Teller
Moderator
Moderator
Dear Arena, I agree when it comes to commercial credit PLC ,the golden story was written because of micro credit .when it starts early 2000' the net profit low as much as 10-12mn but in 2012/13 profit reaches nearly 1bn. The most of the profit came because of micro credit loans. Now they diversifying to land sales,leases etc.when mr.kothalawal starts grameen as micro finance business there were lot of successful stories created by pointing out Bangladesh success and business module.they have granted the loans for business purposes only but in sri Lanka most of the loans are going on for consumptions only.there are some ethics to follow when customer applies the loan.presenting a business proposal,starting a business,developing the business,attending weekly or monthly meetings/events,maintaining a saving account among them.the credit officer/field officer has to monitor these things.customer business,repayment ability,consultancy are major responsibilities.but mr.arena,are these functioning in Sri Lanka well???. There is a finance company they just give the loan application ,next day grant the loan . This is not a real micro finance concept. This industry may not exist for a long time .in my point of view that all micro finance companies must get together to act in common principles.women are getting the loans and their husbands are attacking to field officers at the time of asking repayments. That kind of attack was reported in kuliuspitiya last month.the field officer stays at home after resign. People start with small loans as low as 30,000 may increase to 65,000 with in year . 5 to six micro finace companies are granting loans for a same woman may increase to 150,000 .so she can't repay it as huge amount,it's like credit cards we have 5 to six banks.it's so sweety at the time of spending but pay???. The other tragedy situation is some micro finance companies field officers can't be entered some villages.they are black listed companies by villagers.when mr.premalal owner of prime land acquires ceylinco grameen had big problems.recovery rate was too low.no one company was grameen in the history . But at the moment commercial credit is the 1st in rank ,Kanrich finance may be in 2nd. Actually what happened to ceylinco grameen ,the introduced of micro business to Sri Lanka? Employees were given 8-10 times bonus per year , this business is not a long term business if they don't have diversification .poor will be poorest in coming years.government or central bank has to impose ne lows to protecting people as well as companies.commercial credit PLC,Kanrich finance ltd,sdb,people leasing,Lomb,nab,cifl,berendina,mbsl,cdb,silver line are leaders in the industry,when our main attention to CIFL they loose millions in polonnaruwa and suburb.they gave farmers unfortunately drought and other factors led them to not to repay.now cifl vanished ,their micro finance vanished.granting loans as easy as ABC but recovery????


_________________




Teller said is said..

57Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 12:00 pm

udith


Stock Trader
micro finance is good to reduce poverty provided it combined with ethical banking and proper infrastructural development Kothalawala is the last person to do ethical banking but I think Sanasa is doing fairly good job

58Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 12:18 pm

WWDNF


Equity Analytic
Equity Analytic
There is no "ethical banking" when it comes to micro credit. The interest rates they charge from the poorest of the poor are exhorbitantly high. However, the default rate is very low given that these people are much more honest than city folk and they live in close-knit communities, so they find if difficult to face their neighbors if they default. As someone mentioned above, they tend to pay more than the due installment during a good harvest so the collection rate is more than 100%. I know this because I was involved in an industry which required the services of micro-credit agencies (Sanasa, SEEDS-Sarvodaya, LOLC, etc.). Also, calling Kothalawala "ethical" is a joke.

59Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 12:29 pm

udith


Stock Trader
what I mean by "Kothalawala is the last person to do ethical banking"
is he will never do ethical banking

60Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 12:33 pm

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
For me even Poliya mudalali who get 10% per month is ethical since he takes a very higher risk by lending to unknown people who has no good reputation in finance transactions.

The rate is depend on the risk they take.

61Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 12:56 pm

udith


Stock Trader
I agree with WWDNF the default rate of micro finance is very low due to the facts  given, low default rate mean low risk, then interest rate has to be low. low interest rate loan with proper guidance is ethical banking but most of the current micro finace institutes are poliya mudalali with different skin

62Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 1:14 pm

rainmaker


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Funny about this discussion. If you did not know by now, the initial RM fund was a part of the Microfinance program with a bank having drawdown rights.

Small finance firms have high expense costs so it does not work. Also a lot of fraud issues + you need thuggish friends ..... Razz

63Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 5:13 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@Vptilak wrote:slstock, without giving any valid reason Teller says market would drop by another 550 points. Why not you make your attention to this statement and request him to make statement with valid reasons and so on ?Poor members (new to stock trading) will sell their PF with a loss otherwise.

Just becuz Teller said somethin, nobody has to follow him blindly.. He's reasoning out why he thinks as such. Market may not go down to that level so lets listen to his reasons for a moment Smile 

64Market may down another  550 points  - Page 3 Empty Re: Market may down another 550 points Fri Jun 28, 2013 6:29 pm

Teller

Teller
Moderator
Moderator
99% have optimistic thinkig and only 1% has pessimistic thinkig . More than 50 b funds will add to economy from commercial bank so buying power will increase .companies get more revenue and profitability will increase.how ever the way of this thinking Is a peanut. Our investors think to get 15% loan from the bank or margin trading and invest on cse.this is a suicide.learn from your past experiences and determine not buy any fill on credit,market PE is attractive but 75% of companies too much over value so far.these companies may deliver good financials in 2016. Good return on equity,less debt,good reinvestment rate,better dividend pay,continuous demand of product and services,good marketing strategies,social responsibility,industry leaders have a crystal way.


_________________




Teller said is said..

Sponsored content


Back to top  Message [Page 3 of 3]

Go to page : Previous  1, 2, 3

Permissions in this forum:
You cannot reply to topics in this forum