While I am new to the market I just applied to Singer finance IPO with my side analysis and predictions. I request for 1000 shares, later the company allocated me for 500 shares according to their allotment scheme.
My expectations before singer finance come to market
I had a friend in office; who always talk about share market and the performance of the market. And he is the one motivator for me to enter Share Market as well.
While the time Colombo Stoke Exchange announced to the public it’s oversubscribed more than 120 times. According to the market trend I expect the singer finance can be double the price of its IPO price. And it can be a range between Rs. 30 to Rs. 35.
Even I expect the double I don’t having planned to sell those shares. And I like to look for a long term investment on it and enjoy the long term performance.
The first day of trading in CSE
17th January 2011, the singer finance listed in the main board of CSE. The first trading started with the price of Rs.35 per share. I didn’t have an idea to sell it even it prices reached 40’s.
But in 45 minutes time its reaching about 45 to 46 to be cleared, while I realized this may be good time to sell, so I called to my Investment advisor and told to sell singer finance shares at Rs.50 each.
In about 30 minutes the prices came down and the range was between Rs.41 to Rs.43. Therefore I call my investment advisor again and asked him to remove the sell order and said I like to keep it for long term.
After sometimes I refuse to see the market movement and see the price movement, but about 1.45pm I have a look on it. The market was about Rs.48 per share.
Then I again call to my investment advisor and told if you can sell the shares at the Price of Rs. 50.but I was not sure whether it will realized the day or after. But about 2.25 pm singer finance cleared the price of Rs.50.
Compare to the Price I earn a capital gain of 2.33 times of my investment. This is an absolute investment opportunity for Srilankan and foreign investors.
LANKEM CEYLON PLC [LCEY] announced Interim dividend of Rs.1 per share. This dividend announced for the financial year of 2010/2011.
Company further says the payment will be on 09th February 2011.
About the company
LANKEM CEYLON PLC established in 1964 and quoted on the year of 1970. Their natures of businesses are importers and Distributers of chemicals, namely agro- chemicals, industrial chemical, bituminous products, consumer products and paints.
The company is very well established and developed in industry in Srilanka.
Dividend Announcement and CSE trend
Today lankem share market starts at Rs. 294.50 and reaches all the time high of Rs. 316.60 after the announcement of interim dividend. As per CSE sources in the image clearly explain the growth of share price from the dividend announcement.
The dividend announcement is May not to affect the share market trends but it’s made a confidence of future development.
Today 17th January 2011. Singer Finance (Lanka) LTD listed to Colombo Stoke exchange main Board. As every investor expects the Singer Finance (Lanka) LTD was the king of the Colombo Stoke exchange today.
Singer finance issued Shares of 26,666,667 Ordinary voting shares at Rs.15 each. And it’s made a history in CSE with by Oversubscribed more than 120 times [approx 127.7 times].
Today is the day for Singer Finance
As per the today’s trade Singer finance started the first trade at Rs. 35 and reaches highest of Rs. 50.80 and close at Rs. 50 at the end of trading.
The start trading was about more of 233.33% higher than Initial Public offered price [Capital gain of 133.33%]. And the maximum reaches today were a 338.66% and absolute capital gains of 238.66% on the investment.
Quite a good points to note
Today singer Finance Share volume turnover is 21.2979 Million. Its 79.87% of the IPO shares have to transfer. And compare with the listed shares of 106.666667 Million Shares its 19.97% of trading.
This may be a good sign expected by some investor for long term performance for long term investors, the same time may be quick sale will get maximize the capital gain [238.66% without investment] for short term investors.
Therefore the singer finance shares are good for short term capital gains and long term performance as well.
Hope for future
There is a good hope and scope for the singer finance to perform well in future. So the investors do understand their position and trade their shares in future.
Today 17th January 2011. Sierra Cables PLC announced Colombo Stoke Exchange, the board of Directors of Sierra Cables PLC has decided to Diversify.
Further Company says they intention to invest in the hydro sector and looking a possibility of venturing into the Leisure sector as well.
Further company said they have signed a MOU to supply of 2000Km of Ariel Bundle Cables (ABC) for the Iranian Funded Rural Electrification Project (RE-8). The value of the Project is about approximately Rs. 1 Billion.
Today market and Future expectations
Sierra Cables PLC recently performs well in the market and it’s reaching the all time higher value of Rs.5.30. today the market starts with Rs. 4.70 and ends the day with Rs. 5.10.
The investors are expecting a definite share appreciation tomorrow due to this announcement. And the contact with Iranian Funded Rural Electrification Project (RE-8) will help Sierra Cables PLC to reaches the world class standards.
Today 14th January 2011, ODEL PLC Announced Colombo Stoke exchange to discloser of the Interim Dividend of Rs 0.25 per share.
Further it’s disclosing the Interim dividend for the financial Year of 2010/2011. The payment will be on 7th February 2011.
About ODEL and share trend
The odel, one of the company which made initial capital gains of 100%[more than 100%] in the first day of trading. The recent performance of the company and the stoke performance are good for the investors who looking for long term value additions.
My View of ODEL PLC
: Huge capital gains
: Reasonable capital gains
: Huge capital gains compare initial and medium terms.
Emagewise (Private) Ltd announced to Colombo Stoke Exchange (CSE) that it’s acquired 2, 009,140 Ordinary shares in Citrus Leisure PLC at a price of Rupees 86 per share on 11th January 2011.
As a result of acquisition, the offeror along with its subsidiaries and directors mentioned hold 14,826,010 shares of Citrus Leisure PLC, to the total of 31.42% of the voting shares.
Today’s Market reaction
Today 13th January 2011 the announcement made at 13.12. Even through the market reaction is not as expected on trading. But there is a slight variance of Rs.83.00 to Rs.91.00. the market indications show it decrease [11%] of share price from yesterday to today by Rs.10 cents [closing Prices].
But the capital gains are pretty reasonable for the investors as reaching all the time high Price of Rs97.00 in sooner.
In a real situation I don’t have any idea about the future of the company, but the Mandatory offer and the new management may boost the business.
The Board of Directors of Watapota Investment PLC has resolved to recommend a Rights Issue of Ordinary shares to the Shareholders of the company.
The company proposed to issue 25.1 Million [25, 162 800] shares as rights in the Proposition of 75 new ordinary shares for every 2 Ordinary shares held at the price of Rs.20 each. The total rights will be worth of Rs.503.256 Million.
Further the company stays the Primary objective of the Rights Issue is to raise capital for the company to carry out its planned investment activities.
In a minute difference Watapota Investment inform its get into Expo Lanka Holding Limited.
Nestle Lanka PLC announced the Interim Dividend of Rs. 12 per Share. The Announcement have made today in CSE. Its further stays this dividend for financial year of 2010. And the payment will be on 31st January 2011.
The market starts the Prices of Rs.648.30 and Close for the day as Rs.682.20. the share price increase by 5.23%. And the day ranges of Rs.675.00 to Rs.715.00.
Dividend and market reaction
The Dividend is approximately 1.76% of the share value [Closed Value]. It seems to be enjoying the Capital gain is better than the Dividend which announcement for Investor.
Therefore the Dividend announcement won’t affect the market to be changes in prices rather than it Performance.
The east west Properties boards of Directors have resolved to issue Share as Right issue.
The right of over 103 million issues [103,680,000] to existing share holders at a Price of Rs.10 each. The proportion will be on 3 new Ordinary Shares for every one existing share.
It’s further said; the Purpose of Fund raising is to Working capital of ongoing funding of East West properties PLC projects and builds a land bank of properties suited for the hospitality and leisure industry.
Today 07.01.2011 Panasian power (PAP) came to Colombo Stokes Exchange (CSE) as initial day after the IPO. As per the Expectation from the CSE, I personally expect it will be close first day at least of Rs.4, but the happy news is most of the investors are knew about the market trend and play a professional game.
Today market starts with initial trading of Rs. 3.80 and finally closed at 3.50. Today ranges reaches between Rs.3.50 to Rs. 4.00.
In compare to the bid and ask, ask (345,000 shares @ Rs.3.70) is more than a bid (203,700 shares @ Rs.3.60) at the time close the market, therefore we can expect a downside in Monday morning and may recover in evening as usual.
Weakness of today’s trading
In the first day Director of Panasian power Ltd Dr. Prathap Ramanujam sold his 350,000 shares at Rs.3.70.
After the announcement published that Dr. Prathap Ramanujam sold 350,000 shares at Rs.3.70, the investors had small panic about the Panasian Powers performance in future. Because there is some questions arise,
Did he sell it because to realized capital Gain of IPO (is this Maximum can reaches ever).
Did he sell it of his personal decision
But the trading was confused the small level investors, who expects the capital gain in short terms.
Hope PAP will go on
There is good enough hopes that PAP will perform well. And Srilanka is main electricity formation is Step is hydro power, and the announcement of Laugfs Hydro Power generations also will support the Panasian Power stokes to be steady and create confident to investors about Hydro power Industry.
So until there is good enough demand and cost efficiency from the Hydro power, Panasian power will survive.
Laugfs Gas Ltd Informed that Join ventured with Bharat Petroleum Corporation Ltd [BPCL] of India on 4th January 2011 to introduce metal cutting gas in Srilanka.
The Metal cutting gas will brand “Laugfs Bharat metal cutting gas” [LBMCG]. The initial agreement made with Bharat Petroleum Corporation Ltd [BPCL] to pay a Royalty fee of US$ 250 per Metric ton or part thereof on LBMCG sold under the license from Bharat Petroleum Corporation Ltd [BPCL]
Srilanka Cutting Gas Market
Cutting gas has a good demand from the constructions, companies which involve in heavy engineering, Colombo Dockyard and railway department and so on.
Laugfs Bharat metal cutting gas [LBMCG] Forecast
The current cutting gas demand is about 30,000kg per Month, and Laugfs focus on 50% market by end of 2011. This target can be achieved by their 11 island wide gas distributors and 1600 dealers.
And Laugfs focus to contribute their total turnover by 50 million from the metal cutting gas.
Share market effects
After the announcement made by the Laugfs Gas Ltd the investors expect to rapid improvement on share price, but the most of the investors are consider this is a functional decision making rather than a strategic decision making, Still the Prices are affordable to buy a good company which will perfume better in future.
Laugfs Gas announced yesterday evening that they get into Mini Hydro Power Project with the investment of Rs. 500 Million.
Still I personally recommend to people Laugfs will be one of the blue-chip company inSrilanka.
As everyone expected the Price of PC House Voting share arise rapidly yesterday and Day before yesterday. Which was reaches the all the time highest of Rs 16.80 of PC House trading History. As everyone see there is enough possibility to happening a manipulations and generated quick short term Profits by Manipulators.
Therefore the Colombo Stock Exchange has applied the 10% price band to PC House Voting shares. This Band implemented from 05.01.2011. To 26.01.2011.
This band will allow the market to be Perform Up site or Down site by 10% from the previous day Closing Price.
For example PC house pervious day Price closed at Rs. 16.10. The Trading range can be a range of Rs 14.50 – Rs.17.70. today the Market Close at Down by 10% & closed at Rs.14.50
The PC house PLC was a Bad Performer in Colombo Stoke Exchange in Previous Months; the Price of the share was reach Rs. 8.50 per share which issued at Rs.12 per Share [IPO].
The recent Performance of the PC house is pretty well according to the market Perceptions on the IT sectors and new Budget Proposal of Srilankan Government. Today 03.01.2011 share price is started from Rs 11.30 and reaches Rs 13.80 and finally closed the Day by Rs. 13.40 per share. [Please find the attach Picture, Snapshot from of www.cse.lk]
As a common perception of the market the PC house having a probability of Reach Rs. 20 to Rs 25 in near future.
For a long time there is a good enough future to reach Rs. 50 per Share. Therefore this Investment is better for long term Perspective than the Short term Focus.
But whatever happens Colombo Stoke Exchange is trading with Predictions rather than the Performance. The best advice to the investors are to not to invest all their saving to the share market.
For Short term – Yes, it’s good for immediate capital gains.
For Long term – Yes, its’ depends on their Adoptability of IT sectors changes and Satisfaction of PC House Customers.
“Better Diversification, better the Life”
This is not a Person advice for anyone; it’s just an observation of the market.
As an investor and follower of CSE, my argument is.
Every investor in Colombo Stock exchange is expecting the Singer Finance IPO. In the mean time Singer Srilanka PLC reaches low transaction price of Rs 170.00 from 189.00[As previous closing]
Today’s Rs.170 was lowest price during this year transactions.
Is there any reason for it?
This price reductions can be a market correction, the CSE was reaches a highest selling positions during the last 2 months. So the investors are expecting there will be a Market correction in near future.
Therefore most of them are considering this as a market correction, but it’s not. If it’s a market correction the whole the market should be affect.
Therefore accepting the market adjustment is depending on their personal.
Manipulating the market
There are some reasons for the argument of Manipulations,
To get weaken position to the Singer Finance IPO
By manipulating the Singer Srilanka shares, will lead the investors to not to attract to singer Finance IPO which opens tomorrow.
The number of shares traded today,
The number of shares traded today is about the 1000; therefore making decision with the few shares may be lead wrong decision.
Today price is the lowest price in the year of 2010.
The price indicates as Rs.170; is a lowest price in the year. The share trading today may lead use to misunderstand the investor and unattractive to the Singer Finance IPO.
As per My Points of View this can be a manipulation cause,
This trend can be continued to tomorrow as well to affect Singer Finance IPO of 15th December [tomorrow].
Laugfs Gas Limited listed in Colombo Stoke Exchange [CSE] today as First day. Laugfs Gas Limited issued 75 million voting ordinary shares at Rs. 23 each and the shares are oversubscribed by 20.2 times.
Is LAUGFS Makes CRY short term Investors?
Today most of the Laugfs Gas Limited investors [short term] are expecting a higher opening price, likely double the rate [RS.46] of share value [Rs.23]. Most of the investors argued similarities of the opening day of ODEL and today’s Laugfs.
But from the opening, all the short term investors’ are understood their short term expectation won’t satisfy today.
Only argument to smile the Laugfs Gas Limited investors are, the total share volume trade today is 30.81 million. Therefore it’s acceptable most of the investors are holding their shares for long term perspective than a short term. Therefore there will be a good future for Laugfs Gas Limited [expected] in long term or immediate medium term.
Is it possible to Laugh?
There is a good enough possibility to laugh. The investors who holding the shares for long term, the argument is, most of the companies long term performance is good if compare the initial listed day.
And the share market is not a casino to see immediate money, if anyone use it as casino it will take back all like cash generate as like casino.
Therefore be professional and be use share market as a capital investment market. Therefore share market won’t cheat anyone any more.
As warren buffett says” feel share market as your friend”
As per My perspective
Laugfs Gas Limited listed
Today- short term investors – CRY
Medium term- the investors who not willing to sell in Medium Term- SMILE,
Long term- investors who are look for long term – LAUGH.