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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Vanik d dead or...

Vanik d dead or...

+7
Monster
chamith
UKboy
milanka
tkc
StocksWatch
Akalanka
11 posters

Go down  Message [Page 1 of 1]

1Vanik d dead or... Empty Vanik d dead or... Sun May 01, 2011 9:57 am

Akalanka

Akalanka
Manager - Equity Analytics
Manager - Equity Analytics


From this forum itself i got to know about The vanik the dead share or .. . .

As new i would like to know the story behind the Vanik and what has happened to it by contributors which will definitely help us , the beginners to improve knowledge and to polish up .. .

so please be kind to share ur valuable experience and thanks in advance . . Very Happy Very Happy Very Happy [i]

2Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 10:05 am

StocksWatch


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

As I understand, there was a court order to delist Vanik, sometime back. Those who held shares of this company are stuck with them as Vanik is no longer trading at CSE.

I think the company is bankrupt and heard its liabilities are way too high compared to assets.

I never held this share so I may be wrong. UKBoy may be able to explain this better as he is one of the victim.

3Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 10:10 am

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

This may help you...
http://www.lankabusinessonline.com/fullstory.php?nid=553678173

4Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 10:44 am

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics

Vanik's future in suspense

By Chanakya Dissanayake

Last week's meeting of a consortium of Sri Lankan bankers with Vanik Inc, largely perceived as the day when the troubled merchant banker was hoping for a bailout package, turned out to be an anti-climax.
The consortium, after Friday's meeting, postponed the final decision on the fate of the company, until they (consortium) obtained an impartial, expert opinion on the viability of Vanik's turn-around plan presented on March 28.

Vanik CEO Justin Meegoda, in his presentation to the consortium, requested additional working capital for its profitable subsidiaries and a grace period of two years to accumulate profits, to pay back debts to the banks. Members of the consortium expressed diverse views on the issue.

A bank CEO, who attended the consortium meeting, said the banks decided to get an independent opinion on whether Vanik's ambitious plan to revive the company could be turned into a reality.

"The issue facing all of us (banks), is to decide whether to call it a day and bite the bullet now, or to let Vanik continue it's operations and take the risk of incurring larger losses", he added.

However, he admitted that personally he is confident of the viability of Meegoda's plan to revive the ailing firm. "There was no uniformity in the sentiment among consortium members. Some were optimistic and some thought that the plan is unrealistic," he added.

At the conclusion of the meeting, the bank CEO's were asked to suggest a suitable expert, having experience on turnaround companies, to study Vanik's plan and offer his or its opinion. The consortium is scheduled to meet after the Sinhala New Year, with the expert's opinion in hand to make the final decision.

The consortium comprised all banks having an exposure to Vanik and included, Peoples Bank, Bank of Ceylon, HNB and DFCC. Vanik's total debts are said to be around Rs 3.7 billion, of which Rs 1.5 billion is owed to the banks.


http://sundaytimes.lk/010408/busm.html

http://forum.srilankaequity.com/u188

5Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 3:06 pm

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

StocksWatch wrote:As I understand, there was a court order to delist Vanik, sometime back. Those who held shares of this company are stuck with them as Vanik is no longer trading at CSE.

I think the company is bankrupt and heard its liabilities are way too high compared to assets.

I never held this share so I may be wrong. UKBoy may be able to explain this better as he is one of the victim.

This was a favorite share throughout small investors. We used to buy in bulks and sell with less than 10% profits. This cycle was happening continuously.

Those days if only a counter price less than Rs 5.00, that counter had Rs 0.10 price breaks. Above Rs 5.00 had Rs 0.25price breaks. Vanik was trading mostly around Rs 1.80- Rs 2.00.

We knew that VANIK was not making any profits. But due to very harsh market conditions we had to try all the possible options. This was also fueled by young blood.

Suddenly VANIK price was going down & I was not aware the story behind that. So same as many others I was collecting more Vanik shares to average the cost. I didnt know that I was trying to catch a falling knife.

Few days later regulators/court announced to suspend all the VANIK tradings.

Finally we all ( most) end up with a dead share & a very important lesson.



.

6Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 3:27 pm

StocksWatch


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Dear UKboy, thanks for sharing your experience with Vanik...I am sure this is good lesson for all of us...

7Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 11:02 pm

chamith

chamith
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

OH..,, thts total disaster man..,

Anyway is the share still there on ur pf ? how much value does it show? Is the company already liquidated?

8Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 11:24 pm

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

chamith wrote:OH..,, thts total disaster man..,

Anyway is the share still there on ur pf ? how much value does it show? Is the company already liquidated?

Hello Chamith, Yes it is still showing on my PF & unit price is Rs 0.80. I think Vanik declared itself as a bankrupt company

I completely forgot about this until recently "Rockstock" mention it in another topic.

9Vanik d dead or... Empty Re: Vanik d dead or... Sun May 01, 2011 11:29 pm

chamith

chamith
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

lol.. funny how you forget whats in ur pf. May be thats why u posted the topic about number of shares in a pf.... lol

Very Happy

10Vanik d dead or... Empty Re: Vanik d dead or... Mon May 02, 2011 12:30 am

Monster

Monster
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

UKboy wrote:
StocksWatch wrote:As I understand, there was a court order to delist Vanik, sometime back. Those who held shares of this company are stuck with them as Vanik is no longer trading at CSE.

I think the company is bankrupt and heard its liabilities are way too high compared to assets.

I never held this share so I may be wrong. UKBoy may be able to explain this better as he is one of the victim.

This was a favorite share throughout small investors. We used to buy in bulks and sell with less than 10% profits. This cycle was happening continuously.

Those days if only a counter price less than Rs 5.00, that counter had Rs 0.10 price breaks. Above Rs 5.00 had Rs 0.25price breaks. Vanik was trading mostly around Rs 1.80- Rs 2.00.

We knew that VANIK was not making any profits. But due to very harsh market conditions we had to try all the possible options. This was also fueled by young blood.

Suddenly VANIK price was going down & I was not aware the story behind that. So same as many others I was collecting more Vanik shares to average the cost. I didnt know that I was trying to catch a falling knife.

Few days later regulators/court announced to suspend all the VANIK tradings.

Finally we all ( most) end up with a dead share & a very important lesson.



.
Thanks for you to share your experience. This is a good lesson for those who chase shares which has no values. Most of the time we learn lesson from our experience.

11Vanik d dead or... Empty Re: Vanik d dead or... Mon May 02, 2011 8:34 am

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics

But the vanik story is older than this. It debut was in 1994 I think. I was just learning about the market and urged my father to subscribe to the IPO. He refused saying it's a worthless company.

Vanik set a record for oversubscription at the time those days not everyone had CDS accounts so it took them a long long time to send the certificates out despite hiring hundreds of temps to help out.

If I remember correctly they opened at 100 on the first day (20 rupee shares). Then it climbed intra day to 120 a few days later. That as their high point. It never came out of the decline that started at that point.

Curiously, many people who got shares from the IPO didn't sell out at high prices. I bet some of them still have their certificates.

It was all hype and no profit. Now look at the CSE today and see how many potential vaniks you can spot.

12Vanik d dead or... Empty Re: Vanik d dead or... Mon May 02, 2011 8:38 am

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

tubal wrote:But the vanik story is older than this. It debut was in 1994 I think. I was just learning about the market and urged my father to subscribe to the IPO. He refused saying it's a worthless company.

Vanik set a record for oversubscription at the time those days not everyone had CDS accounts so it took them a long long time to send the certificates out despite hiring hundreds of temps to help out.

If I remember correctly they opened at 100 on the first day (20 rupee shares). Then it climbed intra day to 120 a few days later. That as their high point. It never came out of the decline that started at that point.

Curiously, many people who got shares from the IPO didn't sell out at high prices. I bet some of them still have their certificates.

It was all hype and no profit. Now look at the CSE today and see how many potential vaniks you can spot.
very interesting !!

13Vanik d dead or... Empty Re: Vanik d dead or... Mon May 02, 2011 8:43 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

tkc wrote:
tubal wrote:But the vanik story is older than this. It debut was in 1994 I think. I was just learning about the market and urged my father to subscribe to the IPO. He refused saying it's a worthless company.

Vanik set a record for oversubscription at the time those days not everyone had CDS accounts so it took them a long long time to send the certificates out despite hiring hundreds of temps to help out.

If I remember correctly they opened at 100 on the first day (20 rupee shares). Then it climbed intra day to 120 a few days later. That as their high point. It never came out of the decline that started at that point.

Curiously, many people who got shares from the IPO didn't sell out at high prices. I bet some of them still have their certificates.

It was all hype and no profit. Now look at the CSE today and see how many potential vaniks you can spot.
very interesting !!


Yup we might still have a few Vanik.

14Vanik d dead or... Empty Re: Vanik d dead or... Mon May 02, 2011 9:00 am

dougieboy


Moderator
Moderator

Akalanka wrote:
From this forum itself i got to know about The vanik the dead share or .. . .

As new i would like to know the story behind the Vanik and what has happened to it by contributors which will definitely help us , the beginners to improve knowledge and to polish up .. .

so please be kind to share ur valuable experience and thanks in advance . . Very Happy Very Happy Very Happy [i]

Vanik revival is still under consideration I think. It could go eitherway. Anyway the loss some of us made over this cannot be forgotten. Don;t make same mistake with certain share in this market people.

15Vanik d dead or... Empty Re: Vanik d dead or... Tue May 03, 2011 12:04 am

ccsentha


Vice President - Equity Analytics
Vice President - Equity Analytics

[/quote]Don;t make same mistake with certain share in this market people[quote]

guys what ar the current shares which could hav similar risk?

16Vanik d dead or... Empty Re: Vanik d dead or... Tue May 03, 2011 12:06 am

ccsentha


Vice President - Equity Analytics
Vice President - Equity Analytics

smb, amana are the lowest priced shares in cse....at the moment.....could there be similar risk to vanik?

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