Teller, The Great Manipulator Of HEXP

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.

Rifanmoh wrote:

Chinwi wrote:



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.  

Could see your level of experience in your view. 

It's obvious that the share price will go back to its original value after the possible one off dividend. But one should not miss to see the point that the shareholders any way will get the price difference paid as dividend. So no loss to the shareholders. 

Chinwi wrote:

Rifanmoh wrote:

Chinwi wrote:



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.  

Could see your level of experience in your view. 

It's obvious that the share price will go back to its original value after the possible one off dividend. But one should not miss to see the point that the shareholders any way will get the price difference paid as dividend. So no loss to the shareholders. 

Wrong or you did not get my idea.

I tried to say there should be no premium in trading price for amount of cash it has.

if not,  dividend < price difference  = loss

Teller wrote:We recommend HEXP from 50 levels so those who trusted us are real winners. There is no doubt at all as we promised HEXP will be touched 130/ levels.
Current market scenarios effected overall market sentiment that's thereason our target took some time.
How ever HEXP is the golden share we should accumilate at this stage.
GL

Chinwi wrote:Only one question I have.

If they - HEXP and ALUMex were not related to each other , not managed by same people, would ALUMex pay this unusual amount  to HEXP for a 8 acre land  ?  

People are taking about  a big profit.  ALUMex collected  800 million from public at IPO 2 years ago and now HAYL change owner's name of a land and transfer 400 million from ALUMex to HEXP .

If they give a  big dividend then  will money go back to the Public ?
No ! to the pockets of main shareholders of HEXP .

Ryan Hudson wrote:What is this ? Supreme court of sri lanka with lot of lawyers, debates should be fruitful, the land has been valued by licensed valuer, so no loss to either party, its win win

Chinwi wrote:From the beginning my argument was this is bad for minority shareholders of Alumex. They lose their money.  That's all.

Rifanmoh wrote:

Chinwi wrote:From the beginning my argument was this is bad for minority shareholders of Alumex. They lose their money.  That's all.

You are correct.

It is bad for ALUM if it paid an unnecessary premium to acquire this land.

It is extra good for HEXP if there was such an unusually high premium included in the price. But however the extra premium could not be more than 50 Mn. As reported in every annual report, the annual movement in the market value of this property justifies the price Rs. 420 Mn.

“The statement that the land was given for Rs.100/- per Acre is incorrect.

In fact, the Government Chief Valuer had valued the land at Rs. 170,825,000/- and the investor has agreed to pay the total amount upfront.”

Rifanmoh wrote:Q3 Financials are released. While there is excellent improvement in the profits, the company also has disclosed on the profit earned (Capital Gain) with regard to the sale of land in a note to the accounts.


This has been disclosed as the transaction was executed after the end of the Q3. This profit will be included in the Q4 financials.

As i have been repeatedly arguing that a profit per share above Rs. 25 has been earned due to the sale, now it is evident that profit of Rs. 26.875 per share has been actually disclosed. Divide Rs. 215 Mn by number of shares 8 Mn.

Your calculations are correct. Agreed.

This profit is a permanent addition to NAV. So now think of the PBV of 1.38. So the share price is capable of going up by (1.38*26.875) Rs. 37. This is around Rs. 120

The company's cash position has drastically improved to Rs. 150 Mn even even before the sale the land. With the sale of land cash per share to stand at Rs. 71.25. This provides an opportunity for a huge one off dividend unless the Board has plans to reinvest the cash in the business.

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.    

Miss-Sangeetha wrote:

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.

 If your left hand transferred 420 Million to your right hand, will you beat the drum as a very good transaction with huge profit? What is the purpose that the HEXP mentioned honestly about the word “subsidiary companies of Hayleys” and “common directors” in their announcements?  Your PV inner system possibly fabricated storey and how many peoples in the world accessible to your PV inner bullish?

Earlier when The Capital Trust dump JKHW00023 on retails head or Acuity stock brokers dump ALHP on retailers head or even your Bartleet stockers dump HEXP at 96, Have they claimed their responsibility? Or were their Name in company’s first ten share holders list? They had used only third party’s account to dump on others head

I reiterate or reaffirm 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.

No point in arguing with fake recently opened ID profile with zero or one, two reputation point and less than 20 post, they are coming here for the course of HEXP and disappear or reborn with new ID profile after the manipulation of HEXP.

Rifanmoh wrote:It seems the Market did not understand/get attention of the huge profit that has been recorded in the books of HEXP.

Await the quarterly financial to reveal the reality. I am a professionally qualified Accountant working as an Accountant at one of the blue chip companies in Sri Lanka. There is no any doubt on the cash profit of Rs. 200 Mn + because of the sale of the land.