@mono wrote:that 3.779 involves a capital gain from disposing SEYB shares.
I don't think it's the wisest decision to look at LOLC simply by looking at PE, i don't think thier operating EPS for year will exceed 6. but the thing with LOLC is that they have aggressively expanded over past 6-9 months and are under good management. There is a general impression among the corporate community here that LOLC will do well in the future and that's why it's attracting big investors.
Thanks Mono for pointing out an important fact that I have missed.
However your point is in-supportive of my argument. As it hinders operating profit reported.
After removing the gain of disposing SEYB (Rs 1.7 billion), Q2 EPS hangs around 1.5 - 1.6, making this year's adjusted profit around 6-7. Thus Q3 result is not drastic change in performance.
In principle I agree with you that leading PE is the important factor not tailing (reported).
Nevertheless, finance being the core-business of LOLC this is a bit stagnating situation, as I perceive. It is my thinking that market expected something more than this (it is some-other matter that what the market should have expected from LOLC).
By considering current market condition also, I still expect price of LOLC to go down.
Last edited by Academic on Wed Feb 16, 2011 10:54 pm; edited 1 time in total (Reason for editing : typo)