SHL (Softlogic Holdings): Hidden Value

Intelligent Investing · 1 SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 9:01 am

Intelligent Investing

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SHL (Softlogic) has hidden value.

NAV of SHL (approx Rs 9.5) does not reflect the capital gain they made on their Asiri investment. The accounting principles states that the shares they bought in Asiri must be shown at price of purchase and not the current price when calculating NAV. So the multi-billion ruppee gain made by Softlogic by buying Asiri (Asiri share value has doubled since SHL bought the stake) is not reflected in NAV of Softlogic Holdings. If SHL sold Asiri stake, they can make a huge profit and cover most of their loans.

SHL is a share worth 12 trading at 8. If they increase profits and reduce interest costs, this share can easily be at 16 in two years. They have got into some new ventures such as the Burger King, Movenpick projects and are opening a hospital in Kandy. This is a great share to collect at these levels.

Disclaimer: please do your own research

kalum · 2 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 12:02 pm

kalum

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Little bit to add.. keep eye on Asiri as well. Asiri group of hospitals aiming global recognition standard, which still none of srilankan hospitals achieved. It's a standard like CMMI to IT companies. however not only Asiri is targeting this, there are one or two private hospitals also strategically trying to get in to that standard.

Asiri, SHL, ECL all these seems to be hot picks, but i will be keep cautious with ECL because currently it is over heated. Smile

rainmaker · 3 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 12:53 pm

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Yes but without Asiri SHL would be a f!@king nobody!

UKboy · 4 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 3:15 pm

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rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

econ · 5 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 7:03 pm

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SHL was a massively over priced IPO and currently trades at fair value.

Leon · 6 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 11:22 pm

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econ wrote:SHL was a massively over priced IPO and currently trades at fair value.

If they are smart enough to reduce the debt burden, the group will be very attractive.

stumpy · 7 Re: SHL (Softlogic Holdings): Hidden Value Tue Jan 07, 2014 10:05 am

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UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem... Very Happy

seek · 8 Re: SHL (Softlogic Holdings): Hidden Value Tue Jan 07, 2014 1:59 pm

seek

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rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

According to the last Q report,
Revenue from Information Technology 3.0 Billion
Revenue from Retail 3.6 Billion
Revenue from Financial Services 3.5 Billion
Revenue from Healthcare Services 3.7 Billion
Total Revenue for the quarter 14.1 Billion
Healthcare Services is only about 26% from total revenue.

Total operating profit 1.4 Billion
Operating profit from Healthcare services 986 million
Healthcare services have given 69% of total operating profit.

According to the current situation, I agree with rainmaker that ASIRI plays the major role in SHL profits. But if they can turn around other entities, then SHL will be the key in future.
There is a demand being created for SHL, I bought my second lot today.

Anyway, this is a good balanced view. Smile

seek · 9 Re: SHL (Softlogic Holdings): Hidden Value Fri Jan 10, 2014 1:03 pm

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This might be the best time to average down if someone is still holding at IPO price as the counter seems to be bottomed up and on an upward trend.

Intelligent Investing · 10 Re: SHL (Softlogic Holdings): Hidden Value Fri Jan 10, 2014 1:19 pm

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seek wrote:This might be the best time to average down if someone is still holding at IPO price as the counter seems to be bottomed up and on an upward trend.

I agree - if ASPI is continuing to move, this will reach 11 at least

So might as well buy now

seek · 11 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 11:06 am

seek

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seek wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

According to the last Q report,
Revenue from Information Technology 3.0 Billion
Revenue from Retail 3.6 Billion
Revenue from Financial Services 3.5 Billion
Revenue from Healthcare Services 3.7 Billion
Total Revenue for the quarter 14.1 Billion
Healthcare Services is only about 26% from total revenue.

Total operating profit 1.4 Billion
Operating profit from Healthcare services 986 million
Healthcare services have given 69% of total operating profit.

According to the current situation, I agree with rainmaker that ASIRI plays the major role in SHL profits. But if they can turn around other entities, then SHL will be the key in future.
There is a demand being created for SHL, I bought my second lot today.

Anyway, this is a good balanced view.

Beaten down shares recover very fast than others.. already in 51% gain on COCR and 26% gain on SHL

Intelligent Investing · 12 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 12:47 pm

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seek wrote:

seek wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

According to the last Q report,
Revenue from Information Technology 3.0 Billion
Revenue from Retail 3.6 Billion
Revenue from Financial Services 3.5 Billion
Revenue from Healthcare Services 3.7 Billion
Total Revenue for the quarter 14.1 Billion
Healthcare Services is only about 26% from total revenue.

Total operating profit 1.4 Billion
Operating profit from Healthcare services 986 million
Healthcare services have given 69% of total operating profit.

According to the current situation, I agree with rainmaker that ASIRI plays the major role in SHL profits. But if they can turn around other entities, then SHL will be the key in future.
There is a demand being created for SHL, I bought my second lot today.

Anyway, this is a good balanced view.

Beaten down shares recover very fast than others.. already in 51% gain on COCR and 26% gain on SHL

Yes and Ashok Pathirage was also collecting at 10.30 levels. I think it'll reach 13 easily if they have good reports coming soon

Leon · 13 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 1:49 pm

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Any special news?? Dividend???

seek · 14 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 5:16 pm

seek

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Leon wrote:Any special news?? Dividend???

Highly geared companies like SHL will take another quarter or two to show improved results with the help of less finance cost. There will not be any surprise results or dividends in near future. But look at the demand for ASIR. It is doing pretty well. After consolidation their finance arm will start to do better.

Earlier I was more interested in VONE than SHL but when I see SHL is beaten down to the ground and the upward trend is forming I sold all my VONE shares and bought SHL.

So far, this has been a good decision.

At the moment, Mr. Pathirage is adding more value to SHL than what DP is doing to VONE.

Intelligent Investing · 15 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 5:59 pm

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Leon wrote:Any special news?? Dividend???

Have a look at their NAV after using the Asiri share price now! Asiri has surged and so should SHL. With interest rates coming down, their finance cost wont be as high

Backstage · 16 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:15 pm

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stumpy wrote:

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

Hey Stumpo, without just clearing your throat why don't you give us a tech update ? Its been a while since we have heard from the likes of you and Gann, even Trader bugger isnt posting these days. On another thread maybe as this is 'bout SHL.

dhanurrox · 17 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:38 pm

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Backstage wrote:

stumpy wrote:

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

Hey Stumpo, without just clearing your throat why don't you give us a tech update ? Its been a while since we have heard from the likes of you and Gann, even Trader bugger isnt posting these days. On another thread maybe as this is 'bout SHL.

Every passing day tech guys are understanding it's all about manipulation and sentiment.If not then they have a big problem.

Chinwi · 18 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:48 pm

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This was in my future collection list. SHL is a sleeping giant . Due to its huge gearing it cannot show its real colours.
Now I feel it is getting attention earlier than we expected (very bad ! ) due to easing of interest rates.
At the moment it is at fair value. Sometimes, we may not get a chance in the future to collect it at fair prices if market appreciated as a whole. Sad

mark · 19 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:57 pm

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dhanurrox wrote:

Backstage wrote:

stumpy wrote:

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

Hey Stumpo, without just clearing your throat why don't you give us a tech update ? Its been a while since we have heard from the likes of you and Gann, even Trader bugger isnt posting these days. On another thread maybe as this is 'bout SHL.

Every passing day tech guys are understanding it's all about manipulation and sentiment.If not then they have a big problem.

lolz, that hurts dhanu Razz

dhanurrox · 20 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 10:25 pm

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Mark I know you know these things and follow them.We are in same boat and it's the correct boat.Not appearing in FB these days know?

mark · 21 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 10:49 pm

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dhanurrox wrote:Mark I know you know these things and follow them.We are in same boat and it's the correct boat.Not appearing in FB these days know?

ah im having exmas ne Sad

so not much on fb.

your patience rewarded in ECL Smile

i sold that half of CIT and all CFI shit yesterday and today with tiny profits. But yet holding few CIT .

im into banking sector fully Smile

Leon · 22 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 12:10 am

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seek wrote:

Leon wrote:Any special news?? Dividend???

Highly geared companies like SHL will take another quarter or two to show improved results with the help of less finance cost. There will not be any surprise results or dividends in near future. But look at the demand for ASIR. It is doing pretty well. After consolidation their finance arm will start to do better.

Earlier I was more interested in VONE than SHL but when I see SHL is beaten down to the ground and the upward trend is forming I sold all my VONE shares and bought SHL.

So far, this has been a good decision.

At the moment, Mr. Pathirage is adding more value to SHL than what DP is doing to VONE.

Mr. Pathirage is a fearless man in business.

seek · 23 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 6:05 am

seek

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@Chinwi, Can you remember in a PM I said I'm eyeing TKYO and SHL few months ago? Actually I couldn't buy TKYO due to lack of funds. You may be correct. It was the last chance to buy below 9 but this is still cheap to me. What do you think about maize and soybean prices? Will history repeat?. Smile

Chinwi · 24 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 7:58 am

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Yes I can remember how you predicted about those shares.
Same here, i also couldnt buy. only little amt of shl i hv.
shl lolc high gear stocks. lolc gave opp from 50 now 75.
Sorry
im logn off. moving out of coverage area. far awy from cmb.

balapas · 25 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 8:41 am

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I heard SHL going in to restructuring so can see some action taken in coming months. I guess time to get things moving and streamlined than trying their hand in everything. SHL peaked at 12.70 in May last year.

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SHL (Softlogic Holdings): Hidden Value

1 SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 9:01 am

Intelligent Investing

2 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 12:02 pm

kalum

3 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 12:53 pm

rainmaker

4 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 3:15 pm

UKboy

5 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 7:03 pm

econ

6 Re: SHL (Softlogic Holdings): Hidden Value Mon Jan 06, 2014 11:22 pm

Leon

7 Re: SHL (Softlogic Holdings): Hidden Value Tue Jan 07, 2014 10:05 am

stumpy

8 Re: SHL (Softlogic Holdings): Hidden Value Tue Jan 07, 2014 1:59 pm

seek

9 Re: SHL (Softlogic Holdings): Hidden Value Fri Jan 10, 2014 1:03 pm

seek

10 Re: SHL (Softlogic Holdings): Hidden Value Fri Jan 10, 2014 1:19 pm

Intelligent Investing

11 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 11:06 am

seek

12 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 12:47 pm

Intelligent Investing

13 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 1:49 pm

Leon

14 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 5:16 pm

seek

15 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 5:59 pm

Intelligent Investing

16 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:15 pm

Backstage

17 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:38 pm

dhanurrox

18 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:48 pm

Chinwi

19 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 8:57 pm

mark

20 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 10:25 pm

dhanurrox

21 Re: SHL (Softlogic Holdings): Hidden Value Wed Jan 29, 2014 10:49 pm

mark

22 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 12:10 am

Leon

23 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 6:05 am

seek

24 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 7:58 am

Chinwi

25 Re: SHL (Softlogic Holdings): Hidden Value Thu Jan 30, 2014 8:41 am

balapas

26 Re: SHL (Softlogic Holdings): Hidden Value

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