CSD - The hidden gem

Balanced_Views · 1 CSD - The hidden gem Tue Jul 23, 2013 10:17 am

Balanced_Views

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My reasons for selecting CSD as one of the best shares in the CSE:

- Debt-Equity ratio is an excellent 0.1%

- An outstanding Price to Book value of 0.34

- A 50+ perch land at Union Place to be included in CSD’s portfolio and the construction of a 10 storey office complex on said land

- Additions: CSD is hoping to come up with extra value additions to their existing Seylan Tower premises

- Income increase: Rentals expected to go up after refurbishments

- Electricity cost reduction program: CSD has tied up with Access Solar Systems for bringing up innovative solar energy system in order to reduce electricity consumption of Seylan Towers by approx 30%.

- Absolutely no connection to the former regime - Kotelawala etc have nothing to do with this company - new shareholders and directors.

- 2 largest shareholders (other than the Bank) are JB Cocoshell and Dhammika Perera: two intelligent investors.

All Time High: 23.90
Current Price: Rs 10 (with a NAV of almost 29 - under-valued)
Target Price within 12 months*: Rs 14 (40% growth)

Disclaimer: please do your own research before making a decision. I am only stating my opinion. Dont let people tell you what to buy/sell - do your own analysis. I am not giving advice or making a recommendation - just stating my personal opinion based on facts. Thank You.

*Given that market conditions remain stable

Hawk Eye · 2 Re: CSD - The hidden gem Tue Jul 23, 2013 12:42 pm

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I like the last point. 02 Intellingent investors

Balanced_Views · 3 Re: CSD - The hidden gem Tue Jul 23, 2013 12:44 pm

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@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

rainmaker · 4 Re: CSD - The hidden gem Tue Jul 23, 2013 1:19 pm

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DP ?? really.

Last edited by rainmaker on Wed Jul 24, 2013 9:18 am; edited 1 time in total

malanp · 5 Re: CSD - The hidden gem Tue Jul 23, 2013 1:34 pm

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@Balanced_Views wrote:

@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Jana1 · 6 Re: CSD - The hidden gem Tue Jul 23, 2013 2:08 pm

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@Balanced_Views wrote:

@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Ohh.. You mean PC house???

Balanced_Views · 7 Re: CSD - The hidden gem Tue Jul 23, 2013 2:29 pm

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@Jana1 wrote:

@Balanced_Views wrote:

@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Ohh.. You mean PC house???

JB Cocoshell has billions and billions of ruppees in the market and exposed a tiny portion of their portfolio to PCH as a courtesy since they probably thought IPO's did well - and now everyone thinks that it was some major investment they made and judge them by that!

It wasnt even 1% of their portfolio and for every bad decision you claim they made, I can show 100 good ones!

This is like calling Sangakkara a horrible batsman cos he gets out once for 5 runs!

Balanced_Views · 8 Re: CSD - The hidden gem Tue Jul 23, 2013 2:37 pm

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@malanp wrote:

@Balanced_Views wrote:

@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

So basically Net Assets = Rs 1 billion
PBV = 0.34

Buy the company, stop the company to prevent further losses from eroding into net assets - and then sell all the assets! Big profit. Sorted.

Im not sure if that is the plan, but if it is: its good for the Dr

But I wouldnt recommend anyone to buy PCH

Jana1 · 9 Re: CSD - The hidden gem Tue Jul 23, 2013 4:27 pm

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@Balanced_Views wrote:

@malanp wrote:

@Balanced_Views wrote:

@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

So basically Net Assets = Rs 1 billion
PBV = 0.34

Buy the company, stop the company to prevent further losses from eroding into net assets - and then sell all the assets! Big profit. Sorted.

Im not sure if that is the plan, but if it is: its good for the Dr

But I wouldnt recommend anyone to buy PCH

Sumthng interesting... Assest stripping he never did, even though he does, Do u think 10% holding is enough and institutional funding like EPF will allow???

I reckon u to take inventory off as it may be obsoleted...Den calculate

Balanced_Views · 10 Re: CSD - The hidden gem Tue Jul 23, 2013 5:19 pm

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@Jana1 wrote:

@Balanced_Views wrote:

@malanp wrote:

@Balanced_Views wrote:

@Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

So basically Net Assets = Rs 1 billion
PBV = 0.34

Buy the company, stop the company to prevent further losses from eroding into net assets - and then sell all the assets! Big profit. Sorted.

Im not sure if that is the plan, but if it is: its good for the Dr

But I wouldnt recommend anyone to buy PCH

Sumthng interesting... Assest stripping he never did, even though he does, Do u think 10% holding is enough and institutional funding like EPF will allow???

I reckon u to take inventory off as it may be obsoleted...Den calculate

I have taken inventory off :)Ive only counted Property etc - check the Q Report on CSE website please

Yeah 10% is insufficient but he might buy more or have an agreement that they will dissolve

Balanced_Views · 11 Re: CSD - The hidden gem Tue Jul 23, 2013 7:18 pm

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@Hawk Eye wrote:I like the last point. 02 Intellingent investors

There are many other excellent reasons to invest as well - the best share in my opinion!

stocks hunter · 12 Re: CSD - The hidden gem Tue Jul 23, 2013 8:31 pm

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Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

Redbulls · 13 Re: CSD - The hidden gem Tue Jul 23, 2013 8:38 pm

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@stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

You hit the nail. Million time correct.

Balanced_Views · 14 Re: CSD - The hidden gem Tue Jul 23, 2013 8:47 pm

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@stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

Not true - most shareholders are long term anyway

I have stated facts - not rumors and baseless comments

econ · 15 Re: CSD - The hidden gem Tue Jul 23, 2013 9:03 pm

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csd may be hidden gem but no one seem to interest it for long time now. that is the problem. one time it went up to 19 but came back to 10.

stockup&down · 16 Re: CSD - The hidden gem Tue Jul 23, 2013 10:21 pm

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@Redbulls wrote:

@stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

You hit the nail. Million time correct.

WildBear · 17 Re: CSD - The hidden gem Tue Jul 23, 2013 10:58 pm

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@econ wrote:csd may be hidden gem but no one seem to interest it for long time now. that is the problem. one time it went up to 19 but came back to 10.

CSD can become a real gem if They can kick off the SEYB from the tower and instead set up a Casino Razz

dudi · 18 Re: CSD - The hidden gem Tue Jul 23, 2013 11:31 pm

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casinos everywhere. wow,Colombo will look like Lasvegas

Balanced_Views · 19 Re: CSD - The hidden gem Wed Jul 24, 2013 7:59 am

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@WildBear wrote:

@econ wrote:csd may be hidden gem but no one seem to interest it for long time now. that is the problem. one time it went up to 19 but came back to 10.

CSD can become a real gem if They can kick off the SEYB from the tower and instead set up a Casino

Well turnover WoW is relatively high these days - I think it'll reach 14 soon - technicals support this

Balanced_Views · 20 Re: CSD - The hidden gem Wed Jul 24, 2013 8:04 am

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stockup&down wrote:

@Redbulls wrote:

@stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

You hit the nail. Million time correct.

If you want to believe speculative nonsense which is based on silly lies, you can listen to certain people. If you want to believe opinion based on facts (which I believe is what this brilliant forum is all about) you can listen to people who give such opinions.

Do your own research. Capital Trust doesnt have the majority of this - its held with Seylan, JB Coco (who trade through JB) and Dhammika Perera (who is a long term investor) and I think the 4th largest is held by another fund management company - they wont unload it in a irresponsible manner. I hear that LSL collects quantities of this for its clients and its well known in the market that its highly under-valued. People are holding on to see it go up.

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CSD - The hidden gem

1 CSD - The hidden gem Tue Jul 23, 2013 10:17 am

Balanced_Views

2 Re: CSD - The hidden gem Tue Jul 23, 2013 12:42 pm

Hawk Eye

3 Re: CSD - The hidden gem Tue Jul 23, 2013 12:44 pm

Balanced_Views

4 Re: CSD - The hidden gem Tue Jul 23, 2013 1:19 pm

rainmaker

5 Re: CSD - The hidden gem Tue Jul 23, 2013 1:34 pm

malanp

6 Re: CSD - The hidden gem Tue Jul 23, 2013 2:08 pm

Jana1

7 Re: CSD - The hidden gem Tue Jul 23, 2013 2:29 pm

Balanced_Views

8 Re: CSD - The hidden gem Tue Jul 23, 2013 2:37 pm

Balanced_Views

9 Re: CSD - The hidden gem Tue Jul 23, 2013 4:27 pm

Jana1

10 Re: CSD - The hidden gem Tue Jul 23, 2013 5:19 pm

Balanced_Views

11 Re: CSD - The hidden gem Tue Jul 23, 2013 7:18 pm

Balanced_Views

12 Re: CSD - The hidden gem Tue Jul 23, 2013 8:31 pm

stocks hunter

13 Re: CSD - The hidden gem Tue Jul 23, 2013 8:38 pm

Redbulls

14 Re: CSD - The hidden gem Tue Jul 23, 2013 8:47 pm

Balanced_Views

15 Re: CSD - The hidden gem Tue Jul 23, 2013 9:03 pm

econ

16 Re: CSD - The hidden gem Tue Jul 23, 2013 10:21 pm

stockup&down

17 Re: CSD - The hidden gem Tue Jul 23, 2013 10:58 pm

WildBear

18 Re: CSD - The hidden gem Tue Jul 23, 2013 11:31 pm

dudi

19 Re: CSD - The hidden gem Wed Jul 24, 2013 7:59 am

Balanced_Views

20 Re: CSD - The hidden gem Wed Jul 24, 2013 8:04 am

Balanced_Views

21 Re: CSD - The hidden gem

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