LGL - to Laugh or Cry...?

CSE Today · 1 LGL - to Laugh or Cry...? Mon Apr 25, 2011 11:31 am

CSE Today

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LGL is on the down turn run and seems it yet to find a bottom...

Actually comparing to many other stocks in the market this LGL is much more valuable than them, considering the Recent Dividends 1.50 ps and its also an interim Dividend all the stake holder can expect another Dividend for this year itself but the down ward movement of this LGL is the thing I cant understand at all..can any of you members post a reliable answer to this pls...???
scratch

Last edited by CSE Today on Mon Apr 25, 2011 11:33 am; edited 1 time in total

tkc · 2 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 11:32 am

tkc

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http://forum.srilankaequity.com/t2793-petronet-lng-is-eying-the-sri-lankan-gas-market

milanka · 3 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 11:35 am

milanka

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tkc wrote:http://forum.srilankaequity.com/t2793-petronet-lng-is-eying-the-sri-lankan-gas-market

But .. Have look at this too..
http://forum.srilankaequity.com/t2922-laugfs-gas-will-be-the-first-to-import-lng-to-sri-lanka-not-anyone-else-wegapitiya

tkc · 4 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 11:40 am

tkc

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Yes !! We can trust Mr. Wegapitiya...

kuk83 · 5 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 11:45 am

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Not only Laugh most of crying. scratch

CSE Today · 6 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 11:54 am

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tkc wrote:http://forum.srilankaequity.com/t2793-petronet-lng-is-eying-the-sri-lankan-gas-market

NO friend this news Item can not be the real fact for the LGL Downward movement...
If any new comer to enter the Local Liquid Petroleum Gas market in SL it could take a minimum of 3 to 4 years as they have to built up storage terminals which LGL also faced many years ago when they tried to enter the market. Then take the case of much talked MUNDO GAS of Malaysia which tried to enter SL market in year 2000 ..MUNDO tried much quicker way by proposing to dock LPG tanker at the port of Galle and get off the project, still they build up the required storage tanks... but even the said easy method was not materialized with the maximum help offered by then GOSL

So the only way to enter the Local gas market in months or weeks time is only by acquiring the stake of state controlled LITRO GAS...but even If this happened there could not be a new challenge to LGL as LITRO is the sole competitor in SL Gas market & LGL even now faces the challenges of LITRO and increasing its profits & expanding the market share day by day...!

upuldi · 7 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 3:23 pm

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i brought some today ... will c where it goes..... pirat

widanage · 8 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 4:00 pm

widanage

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CSE Today wrote:

tkc wrote:http://forum.srilankaequity.com/t2793-petronet-lng-is-eying-the-sri-lankan-gas-market

NO friend this news Item can not be the real fact for the LGL Downward movement...
If any new comer to enter the Local Liquid Petroleum Gas market in SL it could take a minimum of 3 to 4 years as they have to built up storage terminals which LGL also faced many years ago when they tried to enter the market. Then take the case of much talked MUNDO GAS of Malaysia which tried to enter SL market in year 2000 ..MUNDO tried much quicker way by proposing to dock LPG tanker at the port of Galle and get off the project, still they build up the required storage tanks... but even the said easy method was not materialized with the maximum help offered by then GOSL

So the only way to enter the Local gas market in months or weeks time is only by acquiring the stake of state controlled LITRO GAS...but even If this happened there could not be a new challenge to LGL as LITRO is the sole competitor in SL Gas market & LGL even now faces the challenges of LITRO and increasing its profits & expanding the market share day by day...!

Exactly the news item has nothing to do with the LPG market. My personal onion is LGL counter is finding its own place in CSE.

Petronet is coming here to market LNG (Liquefied Natural Gas) in Sri Lanka. It has nothing to do with LPG (Liquid Petroleum Gas). LNG consists of Methane used for industrial applications specially for power generation purposes. LPG consists of propane used for domestic cooking and cutting (the recent launch of BMCG by LGL is a form of LPG). So it will not affect the domestic LPG market or LGL.

Secondly, LGL heads say that they will be the first to import LNG to the country which means they are planning to do so. With the proposed coal power plants (another 600MW from Norochcholai and 900MW from Trinco) coming in I doubt a future LNG plants by CEB. It is going to be an unnecessary capital expenditure in LGLs point of view. LGL needs to set up a new infrastructure to handle LNG.

Thirdly, Diversification is a good strategy but investments must be done after proper due diligence. Being too bullish in investing your money is not different from being foolish. My personal opinion is LGL is going too much on this and there is a high probability that somebody may take them for a ride.

Finally, LGL is not a professionally managed company. It is a organically grown company. Still there is a lot of room for improvements in the systems, decision making and the management process. LGL may change with the time it will take several years to become a truly diversified company.

Good luck friends

Slstock · 9 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 4:14 pm

Slstock

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There seems to be resistance at aroudn Rs 41 for lgl.N and 31 for lgl.x. If it fall further ti will be more attractive. Not sure how much more it will go but just rememebr there are many who bought between Rs 45-55 Wink

mark · 10 Re: LGL - to Laugh or Cry...? Mon Apr 25, 2011 7:21 pm

mark

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whole market is down,so this may be the reason for downfall of LGL also.......
be patient,
my idea is to collect some if you bought at peaks,this is attractive at current levels...... Cool