On Wed I wrote,
"Finally after a long wait, ASI crossed 6000 2 times now.
Today and tomorrow is crucial to see whether it stays above 6000 with large volume. If it does, and we seen a run till 6500 , we may never see 6000 Again ;-)"
The large volumes are happening as above but it is too early to say about breaking 6000 barrier again. This trend needs to continue upto about 6300-6500 taking small breaks in the middle ( so don't panic for red days). There will be resistance at around 6200 I presume if not sooner next week. We don't want to fall into a psyc trap as mentioned in the above thread if you read. If most hold their positions , prices of shares are only going to go up. This short term selling "cycle" needs to break for all to see better times at CSE. Did you see what happened at UAE and JAPAN last year. Dubai might not forget 2013 in a hurry .
I make note that after March 2014 quarter most good companies might start slowly recovering to past glory with economic growth and interest rates coming down . But I don't expect overall super performace in Dec 2013. Better identify what these companies are earl y. I still see some strong companies trading at 30% their peaks values due to Big bad Bear attack.
Here is to a brighter future at CSE so we all win. Lets break the shackles, forget the Big Bad Bear and think of the golden bull to come. If enough energy is pooled it might just happen and ASI 7000 might be a reality by the end of this year.
After note : I am taking a big risk to say this and be positive as there are uncouth characters here who appear once in 3 / 6 cycles month when the market is down only to pick the right time to critise and say nasty things to show superiority. Please know who these patients are. I welcome contructive critisism at any poin , but not one side , brainwashing of others to attain personal sanctification or gains. What I said is only based on my opinion and observations and it can go wrong. Know human right issues are coming in MArch and other things can go wrong at unexpected times. That is life. Share market is part of it. But someone has to start and be positive with reason. We all have too much of negative minds and Fears due to BBB ( Big Bad Bear) attacks.
Anyway the reason for this post is to identify fundamental shares that have underperformed or not gone up in the market much even after ASI hike from 5750 to 6080. I am not necessarily saying that they must go up, will for sure but here is a start to identify which can be useful to many.
DFCC went from Rs 118 to RS 150. RENU almost has 1 share of DFCC to 1 RENU. RENU trades with PE of about 6 and NAV of
0.6 . Price now at Rs 265 . Useless managemnt treating shareholder lik crap. But massively undervalued.
CDB.N : CDB.X is at Rs 39. CDB.N is Rs 44!! NAV is 60. PE is about 4-5. They hold about 500000 CINS. CINS went from Rs 900 to
Rs 1300. CDB is like a rock without movement. Last dividend RS 2.5 . Has underperformed market by massive margin,
ALLI : Had below expected last 2 quarters. Crashed the share price from Rs 1100 to Rs 760 due to it. NAV is over 900. This share
kept going down in ASI run. This is too strong of a fundamental to remain at this price for too long. Only 2.4 mil shares in
GLAS : Worse than ALLI last 2 quarters were very bad. Price is beatnen down to ground. ( At Rs 4.4) from Rs 6.5 from last dividend.
This share pay about 50% of profit as dividends . Current price behavior similar to ALLI
SDB : Trades at about 60% NAV and PE of about 5. For longtime this share never catches investor eye for some reasons. Public
holding is 99%. Last dividenss Rs 5. Whatever its reasons ( gold portfolio was another , this is one of the most undervalued
shares in Banking sector with too good a dividend.
RHL/COCO/RAL : This company has grown their revenue by massive margin over last 3 years. But profit got effected due to
marketiung, admin costs. Eventually management if adjusts these expenses, this can start reporting very high EPS. Current
Coconut prices migth be a concern but tapping into foreign markets should buffer the costs. NAV Rs 45 . PE about 6-7.
Trades at Rs 32.
DP companies : Most of them have been beaten to ground. Special mention to look at VFIN/LFIN. VFIN has potential to get sold off or absorbed to LFIN with CB requests. Also their TILE companies. HAYL is a big boy begging attention
Some companies which showed good earnign potential has already risen in price but may go up depending on their earning.
TKYO, LIOC, REXP to name some.
I can mention so many more , but I like others to contribute.
Note : I hold some the above companies and some I don't. If I hold or not I mentioned why ( reasons) I think they are valued.
Don't jump and buy without study.
please contribute to a good discussion with reasons. No mentioning share like TWOD, BLUE , PCH , CIFL which are speculatives. Else this post will ultimately has 250 share names and end up a big promotion to push shares in our portfolios.
All the best to us and a golden 2014.