COCR ANALYSIS + Another Dirty Game on CLC
PRE NOTE :
I see I got dozens of messages thanking for the analysis of SCAP. You are welcome. As you now earned profit, make sure to help the needy with part of the money and help to make CSE and Sri Lanka a decent and moral place. Remember to always earn ethically and not at the expense of another.
STEP 1 :
When the above posts was made , I did not straight away reveal the 2 shares under STEP 8 and 9. That's to avoid herd buys. Read the post and see. Later at the right time, I revealed STEP 8 share to be SFL under comments.
Every single analysis, value target I made for SFL has come true to to date as you all know.
STEP 2 :
Under the above post it was mentioned there is a share that is trading low and can gain 100% to even 200% with patient investment. Since I made the post, several people sent me messages asking what that share is. I did not reveal it explicitly except for giving hints in public. Okay. Now I reveal. That share was COCR
STEP 3 :
When the post was made COCR was around Rs 20+. After testing the technical resistance range of Rs 28-30 ,3 previous times, it finally broke Rs 30 resistance today. Previously every time it went closer to Rs 28 it fell back , so I was waiting for the right time to make post on COCR ( since there are too many short term people around blindly following share names)
Fundamental stats for COCR
a) 2021 Financial year EPS was Rs 7.34 (up 40% from 2020)
b) 2022 FY, H1, results were Rs 4.15 eps ( up 156% from 2021)
c) NAV is now Rs 51
d) They gave Rs 1.5 dividend few months ago too
STEP 5 :
Let me show you the comparative stats LOFC vs COCR
-LOFC 6 month eps is 0.57.
COCR 6 month eps is Rs 4.15
-LOFC NAV is Rs 7.4
COCR NAV is Rs 51
-COCR pays dividend. LOFC has never done so far.
Since today both COCR and LOFC was almost the same price Rs 26. Now that I explained all this, which one is worth more?
- LOFC after even a big fall from Rs 37 is now Rs 25. People are chasing LOFC still and promoting it left and right to be valued to Rs 50 on social media.
- Excuse me. Can you tell me how much COCR is worth to you then?
Want a comparative clue ?
On NAV compared to LOFC ratios, COCR is relatively worth Rs 200
On EPS compared to LOFC ratios, COCR is worth around Rs 210
No am not saying COCR is worth Rs 200 right now. I am just showing you the LOFC value comparison with COCR.
STEP 7 : CAREFULLY READ THESE 2 POSTS I MADE IN 2016.
- That's when COCR was herd chased like crazy to Rs 70.
- I warned left and right then not to chase it that high. Read the posts.
- Funny thing is people chased COCR at Rs 70 in 2016, when ASI was 6500+ I think
- But today ASI is 11250. COCR was Rs 26 all this time till today!!!
SHOWS CLEARLY THE MENTALITY LEVEL OF SO CALLED GAMBLERS AND "FALSE INVESTORS" AT CSE ISN'T IT ?
STEP 8 : TRENDS and VALUE
- If the trend today continues ( very likely it will if sans something unexpected) , COCR can test Rs 40 in short term
- Then as the next target , there can be resistance somewhere between Rs 44-46.
- For TRUE INVESTORS with PATIENCE let me tell you a hidden fact.
- 2nd largest share holder of COCR, Group Lease Holdings with 29.99% holding of COCR paid Rs 111 in a controversial deal in 2016.
-So a foreign company bought COCR for Rs 111 in 2016 paying high premium due growth prospects of COCR . In 2021, COCR is still today at Rs 32.5 .
- Do you see any potential here ?
I have pages more to write in detail about this deal.
Will just stop there as am running out of time.
Enough said for now.
- COCR is highly undervalued fundamental share in Finance sector.
- I wanted to make post on COCR around Rs 26-28. I was waiting for resistance to be broken and a retraction to happen. But today 25% up took me off guard . So I quickly decided to find time to make this post. Better late than later right.
- When COCR hits Rs 40, my 100% gain prediction made before will come true.
- Can it go to 200% ? ( from Rs 20 , the time I hinted this) . Let just go step by step shall we. I need to see December financial report too to analyze further.
- COCR has many positives now but also has some controlled risks due to the business model they follow ( quite different to many finance companies) . Those I might discuss in a later post.
STEP 1 : Herd and a certain Stock Broker favorite , LOLC group's CLC today created a small massacre when it was sold down in millions to drop from Rs 62 to Rs 50 ( err that huge) .
STEP 2 : Do you remember the slide I did recently on the Deep analysis post on CLC,LOFC, NIFL. Look carefully at NOTE 2 , option 2 under the photos attached
STEP 3: IF they decide to openly sell down CLC to increase public holding, its going to create a massacre at CSE. ( both index and for retailers who bought Rs 70-80) . I still don't know whether such is the case or not.
STEP 4: IF today drama was an inter-connected party selling game , CLC can go up again from Rs 50. Tomorrow we will know the situation.
STEP 5 :
I would be very careful if you trade with CLC ( or LOFC) . Strictly treat them as trading shares. Tomorrow there can be rise straight away or if there is more selling to come a further dip before a rise.
- MOST VALUE SHARES ARE NEGLECTED AT CSE.
COCR is/was one of them
- GAMERS AND LOVERS OF QUICK MONEY MOSTLY WITH NO EDUCATION ON VALUE , ARE CHASING UNETHICAL STOCK BROKERS , SOCIAL MEDIA GURUS AND HNWI , MAKING CSE A GAMBLER DEN.
- ATLEAST NOW BE EDUCATED THAT STOCK MARKET IS A PLACE WHERE PRICE SHOULD DRIVEN UP BY VALUE FOR SUSTAINABLITY .
- Mandatory FINANCIAL REPORTS ARE RELEASED FOR A REASON. Not because they have an itch in the ass.
- SHORT TERM ANY SHARE CAN BE PUMPED UP HIGH.
Then it can be DUMPED too affecting market and index
( err like the recent LOFC and CLC cases ) .
You seen examples with you own eyes now.
- Turmeric is Rs 7500 a KG due to demand and supply. That the market price. But is it worth it? I can grantee you , Turmeric is going to drop down close to its pre-covid actual price once these artificial issues driving prices up are sorted out. Still in India Turmeric KG is ... ( go do a search) . In Sri Lanka it is Rs 7500.
- SHORT TERM GAMERS CAN PLAY GAMES TO PUMP UP PRICES OF ANY SHARE. It's fun and games for some until it lasts. Not to many when they fall in price.
LONG TERM, VALUE IS WHAT DRIVES THE STOCK MARKET, WHETHER YOU AGREE OR NOT.
All the best
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