#MADU results !!! Net Assets per share 72.70 / EPS (1.73)

Meta Trader

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http://www.cse.lk/cmt/upload_report_file/721_1298028999.pdf
Earning per Share (1.73)
Net Assets per share 72.70
Revaluation Reserve 2,246,761,000

Last edited by Meta Trader on Fri Feb 18, 2011 7:32 pm; edited 1 time in total

Rajitha

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And the Loss making for the quarter per share Rs. 1.73 and for the year a loss of Rs. 5.12! Year before Rs 6.06! . Thats like 310 million for the past 2 years alone in Loss!

Whats the point in Net assets of a company thats sinking more in to debt and not going to liquidate! Also this is like the best quarter ever for Plantations for there profits and MADU produced such atrocious results!

PS:- Also TWOD has a better revaluation and a replanting and it is still trading at such a low value to its Net assets!

marketanalyst · 3 Madulsima Revaluation surplus Fri Feb 18, 2011 7:45 pm

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However, in terms of timber fair value model, company is in a position to make future earnings in terms of other income as sale of timber. Therefore, it has future potentials in terms of other income too. In touchwood case, the valuation has been incorporated as per management discretion. In MADU, it has done a professional valuer who is competent in valuing biological assets. Therefore, valuation has been in accordance with applicable standards and no party can make legal effects on the valuation.

Rajitha

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marketanalyst wrote:However, in terms of timber fair value model, company is in a position to make future earnings in terms of other income as sale of timber. Therefore, it has future potentials in terms of other income too. In touchwood case, the valuation has been incorporated as per management discretion. In MADU, it has done a professional valuer who is competent in valuing biological assets. Therefore, valuation has been in accordance with applicable standards and no party can make legal effects on the valuation.

I made the reply because META did not mention the loss they made but just as a + with the net asset increase initially! Anyway
1. How can you be sure they can find a buyer to sell at the Net asset value price ?
2. What are they going to do with that money ? Repay the debts they have acquired for years and years?
3. What are they going to do even if they sell the Timber ? You then have a loss making company with net asset values of around 10 ? So people can dump the shares till it hit the value rs 10 then when they make the sale ?

mono

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MADU doesn't look like the healthiest plantation in the the world. If you ask me 35-40 seems fair value.

Gaja

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total equity ( net asset ) 2,108,379,000

no of shares 29,000,000

therefore NAVPS is 72.70

but the net assets include Rs. 479,967,000 as leasehold property, and 2,246,761,000. I think we have to give consideration to these items also when considering the NAVPS.

I may be wrong, but i thought in this way

RDS

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Think.... Think........Think........
Be silent..........
Let u feel yr heart beat..........

Now how many of u wish to buy this share @ 72 or just below, around 60~70s.

If u feel to buy @72 prices also, u will defa get a profit.......
If u feel not to buy @ 72 levels(means u want to sell), don't think about that.... go for another share.

simple thing, u will make profit if u sold only, for that there should be a buyer.
Otherwise u have to make fire those timbers & live rest of life around that. Mad

Think & trade wise.

marketanalyst · 8 Reply to Rajitha Fri Feb 18, 2011 9:13 pm

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Mr. Rajitha, How can timber realisation results in a decrease in NAPS to 10? Shocked

Realisation means making money. It will enhance the net assets. I think you have made a mistake on Net Assets of a company.

This realisable timber stocks won't arise at once. But, for in the future accounting periods, this stock can be realised.

DMA · 9 he he Fri Feb 18, 2011 9:38 pm

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This is wt i try to tell before the results,,,,,,,,,

They hv reduced their loss from 3.21 to 1.73 in this quoter.

did u see that they have repay 69m of their loans. who says it is going file for bankrupt.
they are in the process of growing rubber and from next year on words we all will see the profits from those areas.

who think that a company belongs to HARRY JAYAWARDANA going to be bankrupt. Has some one gone crazy............

There current loans hv been obtained from related parties and no hurry to repay those. seems they will show a big profit in coming quoters due to matured timber sales.

when they revalue they should take only the middle part of the tree and all other parts hvnt yet been considered. all these are revenus and it should be noted all are cost deducted revenues.

@ Rajithe,

hello ,,,,,,revaluation mean they get the current value and the selling and realize it by way of cash mean their EQuity will never change. no any negative effect on net assets. okkkkkk

seems you should develope ur knowledge on Balance sheet other wise u will cought for technical manipulation by giving 100% false comments. Very Happy

lol

I dont have time to value the potential of this company at this movement and hope to give you a full valuation before manday if i get a free time.

i see lot of symptoms for MADU to become one of the most profitable plantation in near futuer with very helthy balance sheet. ( more analysis later)

Thank u very much.

marketanalyst

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DMA wrote:

who think that a company belongs to HARRY JAYAWARDANA going to be bankrupt. Has some one gone crazy............

Good point. Even though when NAPS remained @ 11, price fixed around 15-18. When the NAPS has gone to 72, that means will it fix @ 70-75 level???

Leader · 11 no point Fri Feb 18, 2011 10:45 pm

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hey frnd, we dnt need to argue. if u dnt like to buy, dnt. but defa i'l buy more share as much as possible at this price level. and if u dnt like, go for another share without de- motivating others.

mono

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you can't show profits you can't give dividends. without dividends a share is basically worth less. all you can say is at one point these buggers will harvest these trees and give you 72 rs, or what ever is left of it after the wage increase and subsequent years of losses. but then the immediate question is who will buy this share from you after that.

Why is kuru trading at 30 while navps is 70(it was 80 in march Rolling Eyes

)?

tubal

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I see a lot of breath (or type) being wasted. The bandwagon will become pretty crowded from monday onwards and those people will shoot the price up. Another bunch of people will then say 'those guys trying to look smart on those forums are all nuts' and get in, that will send the prices spiraling even higher. Then those people will ask their friends to get in on it.

You know what's going to happen next, but please do keep your counsel to yourself. People need to learn from experience.

mjrocker

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Is this share was worth to buy at current price

marketanalyst · 15 Reply to Mono Sat Feb 19, 2011 8:17 am

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Mono, hope you are making decisions on dividend yield method and you stick to dividends of companies. If you need dividends, you better go for Nestle or CTC. But most of the people are unlike you. They make decisions with a view to make capital gains based on future potentials.

Further, how do you compare textile industry with the plantation sector?? Shocked

Make your decisions with the relevant sector. Analyse the company with the competitive ones in the plantation sector. If you analyse plantation sector with Textile industry you may end up with a complete wrong conclusion Very Happy

anu

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Let me put it this way.

If you look at MADU as a Tea plantation company and analyse the performance, it is not worth. Its EPS, PE, ROA are all meaningless for a going concern to be looked at.

If you think that the newly included timber valuation is going to slowly contribute to the bottomline, then that is something to think.

So, right at the moment, going by the enthusiasm of the members here, I think we have got a hot speculative stock at hand for short term gains....!

marketanalyst · 17 No going concern issue Sat Feb 19, 2011 10:36 am

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anu wrote:Let me put it this way.

If you look at MADU as a Tea plantation company and analyse the performance, it is not worth. Its EPS, PE, ROA are all meaningless for a going concern to be looked at.

If you think that the newly included timber valuation is going to slowly contribute to the bottomline, then that is something to think.

So, right at the moment, going by the enthusiasm of the members here, I think we have got a hot speculative stock at hand for short term gains....!

As per my view, there's no going concern issue since the considerable debts have been obtained from related parties such as DCSL and Stassen Exports. Definitely they don't pursue the loans. However, the increased rubber plantation and rubber harvesting in 5 Hectares and growth in timber sales as well as increased production of tea with bought crops will definitely lead to increased future earnings and the potentiality. Anyway, wage increase expected in the coming period will have some impact to all plantation companies. However, the impact can be turnaround by the increased rubber sale proceeds and other income which results from timber sales.

mark

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mono wrote:you can't show profits you can't give dividends. without dividends a share is basically worth less. all you can say is at one point these buggers will harvest these trees and give you 72 rs, or what ever is left of it after the wage increase and subsequent years of losses. but then the immediate question is who will buy this share from you after that.

Why is kuru trading at 30 while navps is 70(it was 80 in march )?

agree with mono,..in INVESTMENT TRUSTS or UNIT TRUSTS,such as CINV,GUAR,NAVF...it is better to look at NAV,but in plantations it is not suitable.....
Companies sell their whole assets only when they going to liquidate the company,if not they wont sell......the performance is worth for a company other than INVESTMENT companies......
....just think can you find a instant buyer when you want to sell whole timber.....
i may be wrong

anu

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marketanalyst wrote:

anu wrote:Let me put it this way.

If you look at MADU as a Tea plantation company and analyse the performance, it is not worth. Its EPS, PE, ROA are all meaningless for a going concern to be looked at.

If you think that the newly included timber valuation is going to slowly contribute to the bottomline, then that is something to think.

So, right at the moment, going by the enthusiasm of the members here, I think we have got a hot speculative stock at hand for short term gains....!

As per my view, there's no going concern issue since the considerable debts have been obtained from related parties such as DCSL and Stassen Exports. Definitely they don't pursue the loans. However, the increased rubber plantation and rubber harvesting in 5 Hectares and growth in timber sales as well as increased production of tea with bought crops will definitely lead to increased future earnings and the potentiality. Anyway, wage increase expected in the coming period will have some impact to all plantation companies. However, the impact can be turnaround by the increased rubber sale proceeds and other income which results from timber sales.

Rubber normally has a long gestation period. I am not sure whether those rubber plantation are ready for harvest. Timber too, whether it is ready for harvest, is again not clear, though there is a hefty valuation.

I get a strange feeling that the cow is being shampooed and washed to be sold in the market.....!

marketanalyst · 20 Reply to Anu Sat Feb 19, 2011 5:08 pm

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Already the company do harvesting rubber in 5 Hectares. But, they do not process the latex and it is sold to latex collection centers since there's no much latex yet. within next 5 years they will operate latex processing too.

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#MADU results !!! Net Assets per share 72.70 / EPS (1.73)

1 #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 7:16 pm

Meta Trader

2 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 7:27 pm

Rajitha

3 Madulsima Revaluation surplus Fri Feb 18, 2011 7:45 pm

marketanalyst

4 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 7:51 pm

Rajitha

5 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 7:58 pm

mono

6 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 8:28 pm

Gaja

7 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 9:05 pm

RDS

8 Reply to Rajitha Fri Feb 18, 2011 9:13 pm

marketanalyst

9 he he Fri Feb 18, 2011 9:38 pm

DMA

10 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 9:56 pm

marketanalyst

11 no point Fri Feb 18, 2011 10:45 pm

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12 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 10:46 pm

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13 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Fri Feb 18, 2011 11:27 pm

tubal

14 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Sat Feb 19, 2011 7:14 am

mjrocker

15 Reply to Mono Sat Feb 19, 2011 8:17 am

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16 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Sat Feb 19, 2011 9:21 am

anu

17 No going concern issue Sat Feb 19, 2011 10:36 am

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18 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Sat Feb 19, 2011 12:22 pm

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19 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73) Sat Feb 19, 2011 1:31 pm

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20 Reply to Anu Sat Feb 19, 2011 5:08 pm

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21 Re: #MADU results !!! Net Assets per share 72.70 / EPS (1.73)

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