Hey Guys there are many finance companies didnt pay their Depositers and had worst situations and larger portfolios came to Market and Become Sucessfull right, And guys made good money in Stocks like Nations Lanka isnt it? Why dont we wait for the Prospectus with out jumping the Gun...Hold Your Horses Guys...
I got a good recommendation about this company through a friend....every company has positives & negatives..awaiting for their prospectus..
Based on CIFL's Annual report for the year 2009/10 (http://www.cifl.lk/downloads/ann_rep.html - page 2) EPS was Rs. 0.79 and NAPS was Rs.13.07 these figures seem better than the previous year which was Rs 0.13 and Rs 14.92 respectively (obtained from the same report). Performance figures seem promising together with their offer price of 10/- per share. Awaiting the issue of their prospectus. I think it would be a good buy in terms of investment from the way the other finance companies have gained in share value upon their IPOs and listings.
When you have first hand experience it supersedes perception, hunch, EPS, NAV and simply everything. I respect all three views above and any other future views on this. But when you know the smell of S*** you don't need to see it.
All my comments are based on their financials of 2008/09 & 2009/10 and not the latest. I may be wrong if the company had made a complete restructuring to their balance sheet.
1. There main source of funding is public deposits.(Note 17 - Let us see where they have put all these money)
2. Liquid assets has come down from 272Mn to 90Mn (Note 3,4,5)
3. Loan book (Leasing, HP & Loans) shrunk to 309 Mn from 490 Mn. (Note 7 & 8 - There are a finance company. There core business is lending but the loan book is mere 14% of there total shareholders funds and liabilities
How do you justify the above actions. It is good for a real estate company
not for a finance company. Directors should act prudently since they are playing with public money.
4. Investment in JV Company is 776 Mn (Note 14), which can go up to 800Mn. At the same time the interest receivable from JV is 418 Mn (Note 9). Just look at the ROI but not realized yet.
5. With all difficulties they have invested 190Mn (Note 13) Rajagiriya Project and the interest receivable from this included in Note 6 amounting to 22Mn.
I doubt that the balance sheet of the company belongs to finance company but investment or real estate company.
Finally this is CSE which has the real potential for CRAP, GARBAGE and S***. This will be oversubscribe for sure and I will not be surprised if this shoot up to Rs 107.60. As tubal says they are in search for dumb money. They need you....
If the BS of the company has a restructuring during the recent financial year I will hide my tail between the legs and subscribe.