can we expect a diividend from FLCH.

trader911 · 1 can we expect a diividend from FLCH. Tue Jul 05, 2011 7:34 pm

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with an eps of .40 cents there in a position to give a dividend.what do you think

ssb · 2 Re: can we expect a diividend from FLCH. Tue Jul 05, 2011 8:45 pm

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how you say this ?

nkalansu · 3 Re: can we expect a diividend from FLCH. Tue Jul 05, 2011 8:57 pm

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trader911 wrote:with an eps of .40 cents there in a position to give a dividend.what do you think

FLCH is a mostly a plantation company at present. So considering the plantation sector wage hike I do not think it is a good idea to distribute cash at this point.

Rajaraam · 4 Re: can we expect a diividend from FLCH. Tue Jul 05, 2011 9:22 pm

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Yes, As per annual financial reports EPS is 0.46 and NAV is 4.61. . EPS has been calculated for 1068 mn shares .After IPO no. of shares has increased to 1368 mn. IF you workout for 1368 mn shares, EPS comes to 0.36.However they raised funds in April 2011 for their business plan. Therfore even they have a good profit it is not ethical to pay dividend. We also bought shares either on IPO or later from the market and just completed 3 months only. I hope we all can expect good dividend next year..

early · 5 Re: can we expect a diividend from FLCH. Tue Jul 05, 2011 9:46 pm

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I have bought shares too and willing to hold long term. The company is presently investing in many sectors (Leisure, property development, hydro power etc.). Also the Co. will need aditional funds to adjust to the new wage levels of the plantation sector. Therefore it would be more prudent not to pay a dividend and keep the cash in the business itself. In my view, this share has great future potential.

bettersrilanka · 6 Re: can we expect a diividend from FLCH. Wed Jul 06, 2011 12:08 am

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yes FLCH is better for long term...

Marketinvest · 7 Re: can we expect a diividend from FLCH. Wed Jul 06, 2011 12:12 am

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Rajaram , good point agreed

Slstock · 8 Re: can we expect a diividend from FLCH. Wed Jul 06, 2011 2:40 am

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Though a newly listed IPO can get more famous with an early dividend , I also think it is in FLCH best interest to retain cash for expansion and sustained growth and reward share holders with higher capital gain is the longer run than pleasing them with sweet candy now.

econ · 9 Re: can we expect a diividend from FLCH. Wed Jul 06, 2011 10:19 am

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I think FLCH need new news to get momentum start.

RichDad · 10 Re: can we expect a diividend from FLCH. Wed Jul 06, 2011 2:45 pm

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When technically analyze the current patterns I feel FLCH will have good medium term prospects.

Plus, Fundamentally it's a strong company and are planning to expand their operations. Leveraging assets and opportunities available on the estates Free Lanka Capital Holdings has embarked on a number of mini hydro power projects. Presently its subsidiary Hydro Power Free Lanka generates approximately 3.2 MW of electricity in its mini hydro power plants in Sanquhar and Delta. The company has signed standard power purchase agreement with the Ceylon Electricity Board for two projects, Thebuwana at Kuruwita and Stellenberg at Gampola and the construction has already commenced. Power generation is scheduled to commence in November this year. Construction of two more projects at Ragala will commence soon and work is due to be completed by April 2012.

The Group is also into real estate and commercial development through Free Lanka Properties (Pvt) Ltd. The first project undertaken in this sector is the development of a commercial complex in Borella with 80,000 sq. ft of rentable space. The property for this complex has already been acquired by the Company.

Leisure is another sector that the Group is developing through two subsidiary companies. One is Tea Leaf Resort Holding (Pvt) Ltd., which will develop star class boutique style hotels in Kandy and Padukka areas which offer accommodation to a total of 92 rooms.

The main shareholders of Fee Lanka Capital Holdings are Free Lanka Capital Ltd. (70 %), Browns Investments Ltd. (4.12%) and Perpetual Holdings Ltd. (4.27%). Browns Investments Ltd. and Perpetual Holdings Ltd. own the total share capital of Free Lanka Capital Ltd.

Investors should foresee such companies and collect them when trading at a discount. I personally feel this counter is now at a good discount Rs.4.30
Directors may exit, traders might follow. But investors who are in search for future gems it's the point to enter.