CDB - EPS Rs.15.29

We forecast EPS Rs.15.29 for Citizens Development Finance PLC for the year ended 31st March 2011.Our opinion is, this remarkable earnings growth (843% - year to year) will make CDB share more attractive among investors.

Please note that above EPS including other income (major portion) and also do your own analysis before taking buy/sell decision.

If you need any clarification, please do not hesitate to contact us.

Expo Lanka Holding Limited - IPO

Expo Lanka Holding Limited, another IPO.As usual our retails investors are very busy to find cash to apply for said ipo.Some time they sell their good stocks to find cash. Who cares prospectus? Why? Every IPO share price is going up in first day. So no need to read prospectus and best thing is applying all IPOs. Do you think same? We think that most of our retail investors think so. Companies, those come to IPOs, they know how our investors think and they value their IPO price with smart premium and rest will be handed over to our investors. They are doing job well. Finally IPO is oversubscribed by many times.

If above comments is not relevant to you, please forget it.

Here we would like to highlight few points regarding Expo Lanka Holding Limited.

·       Stated capital of the company Rs.1,782,915,000/=.its equal to issued no of shares (before IPO).This means promoters cost of shares is Rs.1.if directors sell 127,351,071 shares @14,their cost for the company is zero. They can do this without changing major shareholding.

·       15%, out of IPO shares will be allocated to employees, its means 25,800,000 no of shares. In addition to this another 2,678,500 shares will be allocated on May 2011 under ESOP. some time they may dump their holding in first day,if they feel,price is getting down and they know their company real value.

·        316,667,500 shares were transferred @ rs.6.we can’t say exactly their decision on first trading day. but  we know if they sell @14,they will get  a wonderful capital gain (14-6).

·        ROE of the company is 15%, EPS .711 for nine months ended including major one off income, Book value per shares 2.41 after IPO increased to 3.42.pls make your valuation.

·       Company has declared dividend for the nine months ended 31st December 2011,cents 0.121.this reduced further cost of a share of directors

·         During the year Rs.100,626,192 has been granted to directors as advance

Note. If you think that above comments are wrong, please discuss with us. And also we would like to say that above are our views. Please make your own analysis or contact your advisor for relevant decision making.

LDEV

LANKEM DEVELOPMENTS PLC
Company ID:- LDEV
Date of Initial Announcement :- 09-Mar-2011
Proportion:- Fifteen (15) new ordinary shares for every One (01) share held
Issue Price:- Rs.25.00/-
The number of shares to be issued :- 103,500,000 ordinary shares
EGM / Provisional Allotment: 21.Apr.2011
XR: 25-Apr-2011
Dispatch of Provisional Letter of Allotment : 29.Apr.2011
Rights Trading Commences on : 06.May.2011
Renunciation: 13.May.2011
Last Date of Acceptance & Payment: 16.May.2011.


Dear Readers,
Currently LDEV is trading at price Rs.78-80.Our opinion is, attractive return can be earned by selling XR and Right entitlements of LDEV.
Please not that above is our opinion and take your own analysis before buy or sell the counter.


SAK

DIMO

DIMO, is a company with a log history over 71 years .DIMO has a greatest product  mix that covers entire population of the country (Benz,Nano,TATA,Star bus,Dimo Batta,DIMO lokka etc).We will not take  your valuable time to read a lot of things. Instead of that we would like to bring your attentions to few aspects.

Financial Aspect

DIMO has recorded Rs.973,916,000 for the quarter ended 31^st December 2011 (EPS.111.91) with drastically increase from year to year recoding 982% (There were no one off income or expenses to remove).During the quarter ,revenue has gone up by 338% from year to year. This remarkable revenue boost bottom line. Important thing is, company bottom line is not burnt by finance cost since finance cost is very less.

Sound product portfolio mix of DIMO ( Benz,Tata ,Star bus,Dimo batta and recently introduced Dimo lokka etc) will increase revenue in future.  

Vehicle Business

After deducting tax rates, registration of vehicles has been increased and all listed motor sector companies revenue has gone up. We can forecast further revenue growth if the government continues same tax policies. However purchasing power of the customer, exchange rates effects, fuel prices hike etc will be disadvantages to the industry and we can take low interest rate on vehicle loans and lease as an important benefit to the industry.

DIMO share

Currently company share is trading on Rs.1, 697.30 (Traded price 12^th April 2011) with a major discount to the market. The counter is trading with forward PE (based on last quarter earnings) 3.79 while the sector PE ratio is 13.14.

We know that you guys are very smart investors and will raise a lot questions. We love to answer your all questions while we are learning from you and you are learning from us.