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 balaharuwa Today at 7:08 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™ » What makes a Share gain wider market interest ?

What makes a Share gain wider market interest ?

Go down  Message [Page 1 of 1]

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Other than the standard PEs, NAV,  management , transparency ,free float ,   dividend ratios , I am thinking  what other factors affect  a wider Investor interest for a share.


Before we start, lets leave out the the biggest factor of them all.   What is that?
Different times encourage different share plays. When the true bull starts, I think big share names mentioned these days will go into "relative" hibernation. Some small midcap shares may out perform the big ones ( what are they is another topic) .
So market mood, and short term investor interest  with the consistent backing of big boy pushes maybe the biggest driving factor  of them all.  We saw the game how CTC and NEST prices were driven to what it is now.  PE and NAV valuations for these share are a joke and is not applicable.



Okay leaving  that aside let start a discussion.


Below is not a  buy recommendation for GLAS . It is meant as a "scapegoat"  for an  academic discussion

Ex: If we look at a share like  GLAS, it is  surprising  to see with the present statistics and consistent dividend ratios , why is gaining more interest .  Consistent dividend is a hot topic in a market like this right?   GLAS has that feature. Is is a Monopoly. Yes,  it  is also a monopoly.    (  Yes it has it challenges   and can have indirect competition but even  CTC , NEST , LLUB has challenges . ) It is international .  Yes.

So what gives?

1) It  appears that ,  in the minds of people there is a distinction  formulated between  who is the major share holder of a  company.  Is it  multinational  ,  international, asian/international  or   family held? (  no offence to anyone .  Just a factual reality I am trying to derive.  I may be wrong)

2) Is it the trust/hope Investors placed in the management  ?

3)  Do people look at the consistency of the management and how long of a history the company  has.

  Then  TJL  is bit  of an enigma  isn't it ? ( not an enema okay).  GLAS was listed longer than TJL.


I will stop and leaving more thoughts/points to come from other members. ( there are a few more that comes to my mind)



Even if a company has other issues,  I find the  below point  a share price booster.

i)

 a high  (consistent)  dividend pay  is not enough.

      It would be much better to distribute  the same dividend spreaded  over   several times year.
     
      Same applies for share like TFIL, LFIN, SDB , CDB , JINS   all which has decent dividend ratios to current price
     ( I am picking these share as an example  based on dividend  pay  to current market price) .

   Even if the there are trust issues with the management,  I guess more short term interest can derive if they start spreading  
   dividends more often. This would atleast buffer somewhat  ridiculous price fluctuation below it market worth .

   Seems companies like TJL and  PLC has understood this concept better :-)

ii)   "treat the minority holders wirh respect and given reward them

Look at CABO and RENU.  Few shares in the market , fantasic PE and Book values  but ridiculous market prices.

Why : useless dividends, no bonuses,  and no apparent  management concern over  minority


FYI :

a) I hold some of the mentioned share but it has nothing to do with this academic discussion.

b) Companies like COMB still haven't  got big prices pushes( capital gains)  though having very good investment grade qualities.
 We need to leave them out of this discussion as  atleast they are stable and does not  have  massive price fluctuations or crazy  share ( under)   valuations.



All are welcome to comment and contribute ideas. Maybe the management of companies will see this and start treating sharesholders better . Huh a wishful thought  right?.  

Maybe Tortoises ( not the one who gave a Theory) will give feathers!!!



Last edited by slstock on Sun Sep 22, 2013 12:14 am; edited 1 time in total

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@slstock wrote: It would be much better to distribute  the same dividend spreaded over several times year.
Even if the there are trust issues with the management, I guess more short term interest can derive if they start spreading dividends more often.
This would at least buffer somewhat ridiculous price fluctuation below it market worth.
Seems companies like TJL and  PLC has understood this concept better.
I agree.
But the issue of the current share price is only a reflection of the performance of the company and management need not to worry too much about it as it has no immediate and direct impact of the running of the company.
That will be important to them only if they need a fresh infusion of more money.
To put it in simple language, we depend on them than they depend on us, so they do not care much.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Generally ROE>>>>>>>> DPS>>>>>>>>Plowback Ratio>>>etc etc

But at CSE? (None of the above for the most retail participants)

Aubrey Perera


Vice President - Equity Analytics
Vice President - Equity Analytics
Very good observation !!!

The Alchemist


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@slstock wrote:Other than the standard PEs, NAV,  management , transparency ,free float ,   dividend ratios , I am thinking  what other factors affect  a wider Investor interest for a share.

All are welcome to comment and contribute ideas. Maybe the management of companies will see this and start treating sharesholders better . Huh a wishful thought  right?.  Maybe Tortoises ( not the one who gave a Theory) will give features!
Some of the things i look for

1. Shares of Companies that are Market Leaders in sectors with growth potential. (DIST, CARS, DOCKS). will avoid paying a handsome price as defined as Price to Book for companies such as CTC, NEST, LLUBS etc. there are many others with pro's & cons such as TOKYO, DIAL, LGL, AEL etc

2. Cash Cows - day in day out, come what may, these companies generate strong cash flows no matter what. DIST, CARS & DOCKS are some of them. i dont think these companies have ever had a rights issue !  

3. Consistent past track record of shareholder value creation through Dividends, Share Repurchases, Stock Dividends, attractively priced Rights issues, Bonuses, Splits etc.
I do not rely too much on dividends as yield is to low except for a few instances (like TJL, JINS & CFVF recently). I wish more companies use dividend money to repurchase a fraction of their shares at NAV especially if those shares are trading at significant discount to their NAV. (but dont do a MAL for gods sake !)
I hope RENU & CABO management does this. This is what they should be doing.     
Since they are cash rich and dont want to pay a good dividend (stingy) or do not need minority shareholders money (rights), they might as repurchase shares at NAV gradually and delist.
Then they can have the whole pie for themselves.  
TJL has no track record and i dont like whats happening at their connected company KURU. If management is so fantastic, what gives at KURU ?

4. Potential Acquisition Targets - you cannot always build an Investment decision on this but its good to keep in mind (to be read with point 5 below). we have seen recently with Aviva, MORI, CERA. what could be potential companies ? in industries such as Aluminium, IT, Hotels,  
Insurance, or services such as freight & logistics ? look for companies trading way below their NAV'S.

5. No clear Controlling Shareholder - JKH, TWOD, ECL ?, BLUE ? some are good. others are not.  

6. Companies that have regular Investor Forums - Hemas had one recently.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
regarding right issues-
Carson Marketing in 1994.
DOCKS 134:100 in 1993.

Sponsored content


Back to top  Message [Page 1 of 1]

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