Teller, The Great Manipulator Of HEXP

Miss-Sangeetha wrote:They have clearly mentioned in their announcement that the transaction is non recurrent transaction, that’s mean can’t be included in the EPS calculation.

 And further more this is similar to related parties transaction; here purchaser is ALUMEX PLC is a subsidiary of the parent company, Hayleys.

https://cdn.cse.lk/cmt/upload_cse_announcements/4901484047847_.pdf

And some of the directors are also common or represent for both companies (Refer their announcement) and the transaction price also determined on their own interest / intension, this price cannot be considered as the market value or price and this is not reflecting the HEXP’s business performances.

This is merely for outsider view; some companies are doing this type of transaction before their borrowing or right issue purposes

If one brother sells his land to his own sister for 1000 Sri Lankan rupees or 500 million Sri lankan rupees there may be so many implied intension in their transaction, in this first case if they wants to avoid the taxation they will use the Rs.1000/- option or if they have any borrowing intension they will go for second potion 500 millions, in both cases these are not the market price only for outsiders view with purpose.     

Here Teller after placing more than 1800 advertisement for Illiquid HEXP and sucked new comers blood money, once again trying another ride on others back for the sake of his boss Bartleet,

 Bartleet, after dumping huge quantities of HEXP on retailers head on HEXP’s first run, stopped their activities after heavy pressure from outside, now Teller wants to reopen the second run on behalf of Bartleet to dump HEXP on others head at high price.

My article might have provoked some people those who already fallen on Tellers trap, have to escape from HEXP and compel to support the Tellers HEXP theory      

Teller wrote:Absolutely correct stock back, where is the Bartleet here. We couldn't see.
Think logically miss Sangeetha, I agree HAYleys owns  around 65℅. So do you think they can play what ever they like?  It's not like that.
Think based on accounting principles and Sri Lankan accounting standards.  
No need to do much justification with you . You will see very soon HEXP above 120/_ levels.
If it doesn't happen I will not write in this forum.  I know the secret here .
GL

Teller wrote:Absolutely correct stock back, where is the Bartleet here. We couldn't see.
Think logically miss Sangeetha, I agree HAYleys owns  around 65℅. So do you think they can play what ever they like?  It's not like that.
Think based on accounting principles and Sri Lankan accounting standards.  
No need to do much justification with you . You will see very soon HEXP above 120/_ levels.
If it doesn't happen I will not write in this forum.  I know the secret here .
GL

Miss-Sangeetha wrote:

Teller wrote:Absolutely correct stock back, where is the Bartleet here. We couldn't see.
Think logically miss Sangeetha, I agree HAYleys owns  around 65℅. So do you think they can play what ever they like?  It's not like that.
Think based on accounting principles and Sri Lankan accounting standards.  
No need to do much justification with you . You will see very soon HEXP above 120/_ levels.
If it doesn't happen I will not write in this forum.  I know the secret here .
GL

This is Hayleys internal transfer not performance wise gain or outside sale, through this transaction they can increase the net asset value of both ALUMEX PLC and HEXP in enlarged amount. Here they are increasing their own asset value themselves in their books of accounts through this transaction, this is mere mirage.
Reality will come sooner than later, similar to COCR prediction of above Rs.110/- share price now COCR trading at Rs53.50.

Chinwi wrote:There is some sort of similarity in  COCR-Thai and HEXP-AlUM deals.

Both deals were initiated and controlled by linked parties to the buyers and sellers .

COCR shareholding director sold shares at premium to Thai Group and that person is holding director posts in Thai group also.

HEXP sold land at premium to LALU and the Chairman of HEXP is also the Chairman of LALU and both are under control of same group.

Both deals were done at unusually  higher rates.

Miss-Sangeetha wrote:

Teller wrote:Absolutely correct stock back, where is the Bartleet here. We couldn't see.
Think logically miss Sangeetha, I agree HAYleys owns  around 65℅. So do you think they can play what ever they like?  It's not like that.
Think based on accounting principles and Sri Lankan accounting standards.  
No need to do much justification with you . You will see very soon HEXP above 120/_ levels.
If it doesn't happen I will not write in this forum.  I know the secret here .
GL

This is Hayleys internal transfer not performance wise gain or outside sale, through this transaction they can increase the net asset value of both ALUMEX PLC and HEXP in enlarged amount. Here they are increasing their own asset value themselves in their books of accounts through this transaction, this is mere mirage.
Reality will come sooner than later, similar to COCR prediction of above Rs.110/- share price now COCR trading at Rs53.50.

Rifanmoh wrote:

Miss-Sangeetha wrote:

Teller wrote:Absolutely correct stock back, where is the Bartleet here. We couldn't see.
Think logically miss Sangeetha, I agree HAYleys owns  around 65℅. So do you think they can play what ever they like?  It's not like that.
Think based on accounting principles and Sri Lankan accounting standards.  
No need to do much justification with you . You will see very soon HEXP above 120/_ levels.
If it doesn't happen I will not write in this forum.  I know the secret here .
GL

This is Hayleys internal transfer not performance wise gain or outside sale, through this transaction they can increase the net asset value of both ALUMEX PLC and HEXP in enlarged amount. Here they are increasing their own asset value themselves in their books of accounts through this transaction, this is mere mirage.
Reality will come sooner than later, similar to COCR prediction of above Rs.110/- share price now COCR trading at Rs53.50.

Dear Sangeetha, it seems you don't understand how the accounting works. Why do you say NA of ALUMEX also will increase because of this transaction??

ifenny wrote:My opinion is : HEXP price can go up as a result of manipulation and will come down.
But if someone wants to invest on this share based on fundamentals, they should ignore temp increase of NAV due to Land transaction and wait to see what is HEXP management is intended to do with that money. What if they decided to settle some debts currently in the balance sheet ? (eg Rs. 89,288,000 of Interesting bearing loans) and pay a reasonable one time dividend (let's say Rs.5 per share x 8,000,000 = Rs. 40,000,000) ? There will be temp hike in the price, but it will come lower than it used to be in next quarter/year as it's NAV will be reduced again.
Technically, this is a internal transfer of assets within the same group of Hayl where there will be no immediate revenue generations for any of the parties involved in (HAYL, HEXP or ALUM). 

Other views/opinions are welcome as I see this topic as a very good learning opportunity on stock valuation.

Miss-Sangeetha wrote:

Rifanmoh wrote:

Miss-Sangeetha wrote:

Teller wrote:Absolutely correct stock back, where is the Bartleet here. We couldn't see.
Think logically miss Sangeetha, I agree HAYleys owns  around 65℅. So do you think they can play what ever they like?  It's not like that.
Think based on accounting principles and Sri Lankan accounting standards.  
No need to do much justification with you . You will see very soon HEXP above 120/_ levels.
If it doesn't happen I will not write in this forum.  I know the secret here .
GL

This is Hayleys internal transfer not performance wise gain or outside sale, through this transaction they can increase the net asset value of both ALUMEX PLC and HEXP in enlarged amount. Here they are increasing their own asset value themselves in their books of accounts through this transaction, this is mere mirage.
Reality will come sooner than later, similar to COCR prediction of above Rs.110/- share price now COCR trading at Rs53.50.

Dear Sangeetha, it seems you don't understand how the accounting works. Why do you say NA of ALUMEX also will increase because of this transaction??

That is typing error, I mentioned the ALUMEX fixed asset / Land asset with inflated value determine by same directors or common directors in both sides (buyer and seller)

ifenny wrote:My opinion is : HEXP price can go up as a result of manipulation and will come down.
But if someone wants to invest on this share based on fundamentals, they should ignore temp increase of NAV due to Land transaction and wait to see what is HEXP management is intended to do with that money. What if they decided to settle some debts currently in the balance sheet ? (eg Rs. 89,288,000 of Interesting bearing loans) and pay a reasonable one time dividend (let's say Rs.5 per share x 8,000,000 = Rs. 40,000,000) ? There will be temp hike in the price, but it will come lower than it used to be in next quarter/year as it's NAV will be reduced again.
Technically, this is a internal transfer of assets within the same group of Hayl where there will be no immediate revenue generations for any of the parties involved in (HAYL, HEXP or ALUM). 

Other views/opinions are welcome as I see this topic as a very good learning opportunity on stock valuation.

Rifanmoh wrote:Why do you worry about what the management will do with the cash??. If they pay off debt. the company becomes debt free and can avoid interest cost and improve profit immediately. Even after paying off the debt, they will still be left with huge cash balance.

If they pay a one off dividend, isn't it good for shareholders??

Miss-Sangeetha wrote:Common directors mean not healthy bargaining in this transaction, all coming in under Hayleys purview, and so called independent assessment/ valuation also question mark, appointed by whom or Puppet of whom ?.

Compare to the surrounding place land value, this transaction of land value is extra ordinary high value with huge difference, any how this is Haleys internal decision because they can reach any amount of value and buyers and sellers are same persons under within the Hayleys purview and sharing common directors.

Due to this transaction Hayleys ALUMEX PLC’s total Fixed Asset /land asset value as well as Hayleys HEXP so called profit in land sale of HEXP also increasing in inflated value that is two mangoes in one stone without any efforts and simple way of transaction

Some are even talking about one off dividend payment to share holders from this land sale proceeds

Any prudent concept following accountant or board of directors won’t allow the land sale proceeds to distribute as dividend with considerable proportion of land sale proceeds.

Hayleys ALUMEX PLC’s 420 Million going to be transferred to Hayleys HEXP’s Land disposal account but how sincerely they are going to spend on investment from this land sales proceeds is an another question mark, in the middle of incoming news of right issue of HEXP within three months is an another doldrums. If this right issue talk of HEXP is true, then this transaction will greatly helpful to them.    

Chinwi wrote:

Both Rifanmoh and ifenny are doing good analysis.
Thank you.

Rifanmoh wrote:Why do you worry about what the management will do with the cash??. If they pay off debt. the company becomes debt free and can avoid interest cost and improve profit immediately. Even after paying off the debt, they will still be left with huge cash balance.

If they pay a one off dividend, isn't it good for shareholders??

I think there is something to concern.  
If trading price increased beyond NAV due to millions in cash ,  as emphasized by someone in another thread ,   what will happen if they drain that cash by giving a big dividend ?  The share should  shrink back to original level.

That is why we should think about real cash in books and trading price especially when a company has considerably higher cash portion in assets.  If trading price go over the real asset level then we may steps into risk zone.  

I saw many people evaluating JKH Warrant prices time to time using various accepted formulas but what happened at the end?

Zero debt is also not 100% good if interest rates are reasonably low.

Teller wrote:Really interesting discussions are going on. Thanks Sangeetha for opening the thread. now no  one can hide the HEXP hidden value. We can see Rs
100 break out with  in days or two.