CSE slaughter house!

From CSE website:
19-Jul-2011 Reference price - Nanda Investments and Finance Limited
The reference price of LKR 1.70 is an indicative price and it's decided by the Company.

Day`s Trading as of 21 July 2011, 10:45:33 AM
Symbol - NIFL.N0000
Last Traded Price (Rs.) - 27.90
Change (Rs.) and (%) - 9.30 (50.00%)
Turnover (Rs.) - 6,417,000.00
Share Volume - 230,000
Trade Volume - 157
Market Capitalisation (Rs.) - 2,809,996,800.00[/b]
Market Cap/Total Market Cap (%) - 0.12(%)

Thanks salt for highlighting this. So there is still some dumb money left to be shaken out from the market. Paying Rs. 27.90 for a share having 11 months EPS of Rs. 0.34 and NAVPS of Rs. 4.53 as per the introductory document is just crazy.

See http://www.cse.lk/cmt/upload_report_file/1076_1311136379887.pdf

However, the EPS calculation in the introductory document seems flawed. The correct diluted EPS calculation will be as below.

11 months profit – Rs. 17,398,320.00
Total issued shares – 100,716,730 (after 1:10 split)
11 months EPS – 0.17
Annualized diluted EPS – 0.19

At an annual EPS of Rs. 0.19, this is currently trading at PE ratio of above 146.

Private placement took place last December for a share price of Rs. 1 and Rs. 1.65. Imagine how much profit they are making now.

I am sure those who buy this share at these levels will come later and start blaming the regulators for not saving them from their own mistakes just like the others are doing already.

I don't know this buyers have a brain or not or sitting on this ...CFIL also over subscribed see the Abans/Swarnamahal Financial service etc.. how the price manipulating ... finally the blame as said will be regulators

StocksWatch wrote:At an annual EPS of Rs. 0.19, this is currently trading at PE ratio of above 146.

Stockswatch,
Since the P/E is still below 200, cant we called this is as an undervalued share?

UKboy wrote:

StocksWatch wrote:At an annual EPS of Rs. 0.19, this is currently trading at PE ratio of above 146.

Stockswatch,
Since the P/E is still below 200, cant we called this is as an undervalued share?

defa it will come up with excellent results

StocksWatch wrote:Thanks salt for highlighting this. So there is still some dumb money left to be shaken out from the market. Paying Rs. 27.90 for a share having 11 months EPS of Rs. 0.34 and NAVPS of Rs. 4.53 as per the introductory document is just crazy.

See http://www.cse.lk/cmt/upload_report_file/1076_1311136379887.pdf

However, the EPS calculation in the introductory document seems flawed. The correct diluted EPS calculation will be as below.

11 months profit – Rs. 17,398,320.00
Total issued shares – 100,716,730 (after 1:10 split)
11 months EPS – 0.17
Annualized diluted EPS – 0.19

At an annual EPS of Rs. 0.19, this is currently trading at PE ratio of above 146.

Private placement took place last December for a share price of Rs. 1 and Rs. 1.65. Imagine how much profit they are making now.

I am sure those who buy this share at these levels will come later and start blaming the regulators for not saving them from their own mistakes just like the others are doing already.

I would like to recall comment by RIO when I try highlight about SFS in some other thread.

http://forum.srilankaequity.com/t6736-whats-the-exit-price-of-sfsn-110-120-130#45824

This comment is applicable to StocksWatch as well.

Monster wrote:I would like to recall comment by RIO when I try highlight about SFS in some other thread.

http://forum.srilankaequity.com/t6736-whats-the-exit-price-of-sfsn-110-120-130#45824

This comment is applicable to StocksWatch as well.

Hmm…Rio is spot-on! I think Monster, we should really go silent on these...just like tubal and few others already did. Let them buy junk at the top and lose their money…let them blame all others (including the regulators) except themselves for doing so…let them shout those JVP type slogans…finally let them self-destruct and disappear!

StocksWatch wrote:

Monster wrote:I would like to recall comment by RIO when I try highlight about SFS in some other thread.

http://forum.srilankaequity.com/t6736-whats-the-exit-price-of-sfsn-110-120-130#45824

This comment is applicable to StocksWatch as well.

Hmm…Rio is spot-on! I think Monster, we should really go silent on these...just like tubal and few others already did. Let them buy junk at the top and lose their money…let them blame all others (including the regulators) except themselves for doing so…let them shout those JVP type slogans…finally let them self-destruct and disappear!

Couple of our guys have remindedme as well. Its time to be silent.

salt wrote:

StocksWatch wrote:

Monster wrote:I would like to recall comment by RIO when I try highlight about SFS in some other thread.

http://forum.srilankaequity.com/t6736-whats-the-exit-price-of-sfsn-110-120-130#45824

This comment is applicable to StocksWatch as well.

Hmm…Rio is spot-on! I think Monster, we should really go silent on these...just like tubal and few others already did. Let them buy junk at the top and lose their money…let them blame all others (including the regulators) except themselves for doing so…let them shout those JVP type slogans…finally let them self-destruct and disappear!

Couple of our guys have remindedme as well. Its time to be silent.

please don't silent. we have learned lots of things from experts of this forum like you.unfortunately tubal is silent. how can we aware about these types of things without proper knowledge. all of you doing great job for us. thank you.

There is still a lot of dumb money out there, and I hope all is purged within the next rights and issues, buy buying into astronomical amounts :S

I am disgusted that fundamentals suffer becuase of this, these people sell the fundamentals to fund their buying sprees....

I believe during this market correction lot of that so called dumb money will be wiped out; this is not a new phenomena for capital markets, along with that lot of dumb traders and investors. This is a natural cleansing process of the stock market animal.

There is no need to be critical about different trading styles, whether its smart investing or dumb investing so on... ultimately those who make money will survive and those who lose will vanish.

Just stick to your guns; whether its investing or trading so long as it has time tested. If you were really followed a time tested strategy you would be much richer by the end of this correction.

kiri wrote:

salt wrote:

StocksWatch wrote:

Monster wrote:I would like to recall comment by RIO when I try highlight about SFS in some other thread.

http://forum.srilankaequity.com/t6736-whats-the-exit-price-of-sfsn-110-120-130#45824

This comment is applicable to StocksWatch as well.

Hmm…Rio is spot-on! I think Monster, we should really go silent on these...just like tubal and few others already did. Let them buy junk at the top and lose their money…let them blame all others (including the regulators) except themselves for doing so…let them shout those JVP type slogans…finally let them self-destruct and disappear!

Couple of our guys have remindedme as well. Its time to be silent.

please don't silent. we have learned lots of things from experts of this forum like you.unfortunately tubal is
silent. how can we aware about these types of things without proper knowledge. all of you doing great job for us. thank you.

Hi

This is just to let you know how valuable your fourm is with your honest opinions on IPO valuations etc. I hold a full time job so I don't have the time to analyze stocks in detail. I thought that was my brokers job. When my broker ( bartleet) advised me to invest in the Softlogiv IPO I hesitated because even though I didn't know about the PP at Rs7, the number of shares being issued and the nature of the company ( high gearing) didn' t make it look attractive. However, due to the insistence of my broker I invested and ......

Thereafter, I read the articles on this forum and found out that the PP and the overvalued IPO had been discussed. If I had read those articles earlier I never would have invested. Now I keep tuned into the forum from 8.30 to 5 ( while doing my job of course ) You are doing an excellent job. Please don't silence the crititical analysis. To me ( and others I am sure) that's the necessity of the day today.

Where is so called miraculous price band of regulators?
Do not tell that there are conditions to apply price bands.....then those conditions should be thoroughly revised.

Tiger wrote:I believe during this market correction lot of that so called dumb money will be wiped out; this is not a new phenomena for capital markets, along with that lot of dumb traders and investors. This is a natural cleansing process of the stock market animal.

There is no need to be critical about different trading styles, whether its smart investing or dumb investing so on... ultimately those who make money will survive and those who lose will vanish.

Just stick to your guns; whether its investing or trading so long as it has time tested. If you were really followed a time tested strategy you would be much richer by the end of this correction.

I am curious to know when do you think we will have a reversal..if we can all time the entry properly..can make a killing at these current low levels..

@ disha thanks for the positive comments..