100 , 200 or 500 will depend on how they manage and balance funding of the Big Project in coming years.
If they manage to pre-sell enough spaces and manage debt and accumulating loan interests there will be no problem for JKH to recover in Stock market to previous levels.
I do not think any prolonged troubles for their other businesses in future except some effects from tax increases and possible small retard in local business volumes for few seasons.
By the way I reproduce here what I suggested about JKH warrants 2 years ago in another forum when they were trading @ 75/- avr. and everybody were talking them as unstoppables at that time.
Re: Valuation ..... JKH Warrants
Post by chinwi
on Tue Sep 09, 2014 10:27 pm
That shows the looming risk feeling in the minds of the investors about this warrant.
Last time N 250 , W 85
This time N 250 , W 75 Next time N 250, W 65 ?
Main concern in the amount involved.
Total amount needed to convert:
JKH22 - 8.1 billion in Nov 2015 - 13 months from now
JKH23 - 8.5 billion in Nov 2016 - 25 months
(questions asked by members:
Their rights issue was for 23 billion. Raising 8.1 billion, is it a big issue for JKH? )
chinwi wrote :
Sometimes, it can become a problem for the people who collect beyond their capacity if they don't dispose at the correct time.
Normally JKH W will go upwards in future and IF more and more retailers collect it to sell at a higher price and create selling pressure at a critical time, the price can go down even when the N goes up.
( a member's suggestion:
The foreign fund that aggressively sell JKH during last few months may have accomplished the task by now.
If no further foreign selling pressure, JKH.N, W22 and W23 might give some adrenaline to the market. )
chinwi wrote :
I like the way you think... I was thinking Completely opposite ! they sold what they got free of charge to our fools and took billions away ?
I may be wrong.
A member wrote : "තල මල පිපිලා...." තුෂාන්(කැපිටල් ට්රස්ට්) කවද මල කපයිද දන්නේ නෑ....
(I think mr. marusira wrote this interesting idiom )
Chinwi wrote: තල මල පිපෙනව කියන්නෙ ගහත් විනාසයි ගමත් විනාසයි. මේ එහෙම එකක් හිතල කිව්වෙ නෑ නේද ?
Back to present:
Now we know JKH warrants became a 'Thala mala' for many of our investors destroying their wealth. Thala mala - flower of Palmyra tree .
Thala tree takes many decades to grow and after the flower only for once in its lifetime and while producing thousands of small fruits the huge tree die off . Due to this phenomena there is an idiom used by Sinhala people තල මල පිපිලා when they see something similar happens. More about Thala mala for those who interested in nature.
Palmyra palm referred here is not the real palmyra palm grown in Jaffna Borassus flabellifer
and other dry zone areas where they make Palmyra toddy , jaggery and young sprouts - kelengu- .
In Sinhala Palmyra Borassus flabellifer
is called thal තල්
. Palmyra thal palm never produce male and female flowers together in one tree. (dioecious). 4-7 inch Thal fruit is produced only in female trees. Sap can be collected from flowers of both trees.
However, Palmyra is not the correct English name for this particular tree we used in තල මල පිපිලා story. ( I have seen this error in internet )
The plant refereed in තල මල පිපිලා is called තල
thala and not තල්
The botanical name is Corypha umbraculifera. It is called Talipot Palm in English.
Not like Palmyra, it is a monoecious plant where both female and male reproductive organs produced in the same tree. (like in coconut ). This palm bears the largest inflorescence of any plant on Earth. It takes 40-80 years to flower and after flowering and producing thousands of small fruits (1 inch dia) the plant dies.
So after its long growth it goes to extravaganza display of its beautiful and huge flower but we know its end is also nearing with the big display.
Both plans are native to Sri Lanka and some parts of Asia.
තල මල පිපිලා see the beautiful display (c) Gayanath Pradeep