Market Downtrend and PLC IPO

dewminigamlath · 1 Market Downtrend and PLC IPO Fri Oct 21, 2011 9:15 am

dewminigamlath

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With the prevailing terrible market situation, I think that many small investors would want to give PLC IPO a try.

econ · 2 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 9:43 am

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This IPO may be a one of a most disastrous IPO in the history.

madurajithp · 3 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 10:32 am

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This IPO may have gov. backup. and market situation also important to decide how well it behave. for sure PLC will be very good investment for long term return.

hawkeye · 4 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 11:26 am

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analyse the price placement factor before get into it. with present market conditions and high volume it may come down on the very first day

UKboy · 5 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 11:37 am

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If you can NOT hold the shares for at least 2, 3 months god's sake please do not insult the PLC IPO

If you think its overvalued then leave it. Is it that hard?

WildBear · 6 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 12:22 pm

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UKboy wrote:If you can NOT hold the shares for at least 2, 3 months god's sake please do not insult the PLC IPO

If you think its overvalued then leave it. Is it that hard?

surely this is gonna be oversubscribed by HNWI including state related funds and forign funds. It's attractive even at IPO price. If PLC trades below the IPO then it's a great opportunity for small investors. Now PLC issome how absorbing 7 billion rupees from IPO investors,most probably from HNWI. If we will be able to buy this at below the IPO price,then it's a great deal.as HNWI infused the capital and we can get the benefit in 1-3 years. Think about what they can do for mammoth 7 billion rupees while having a strong demand for their products in next few years.

We observed the same development in DIAL, with huge IPO, the company have become a giant in telecommunication industry giving more than 100% return to IPO investors within couple of years, though it didn't trade below IPO price at that time.

We can expect a better return from PLC IPO in a couple of years if it trades below IPO price, but unfortunately most of Sri Lankan investors asking for a more than 100% gain in the openig day and become millionaires overnight.

By looking at moarnings and screaming of the forum memebers, It's obvious that most of them have no clue about stock market behaviour, and they think market should rise continuously forever.
They don't accept correctins,pullbacks,crashes that are inherent features of any stock market in any part of the world.Some say CSE should close, Some say growth of CSE is over, some say entire market is overvalued when it trading at P/E of 16 and many solid counters at P/E below 10.Some want to kill the regulators. This reflects majority of Sri Lankan investors are still at kindergarten level.

LongTerm · 7 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 2:59 pm

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PLCL IPO is one which is of sufficient quality and size to attract long term institutional investors from outside of SL. They are the ones who stay with a share for 1-2 years so that all the small investors can make a decent return.

Our retail investors are looking at IPO's as if it was a guaranteed way to make 100% ROI, which is not correct.

So I totally agree with UKBOY, if you do not want to buy-Please don't invest in the IPO. But have the decency not to insult one of the best Companies in Sri Lanka.

Question to all those who are against PLCL IPO:
How many Companies do we have in CSE which has LKR 60-70 billion in assets and make 2.5-3 billion in recurring profits each year???? AND IF SO CAN YOU BUY ANY OF THOSE SHARES AT 8.2 times forward 2012 PER and 1.4 times 2012 PBV.

gaya · 8 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 4:44 pm

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LongTerm wrote:PLCL IPO is one which is of sufficient quality and size to attract long term institutional investors from outside of SL. They are the ones who stay with a share for 1-2 years so that all the small investors can make a decent return.

Our retail investors are looking at IPO's as if it was a guaranteed way to make 100% ROI, which is not correct.

So I totally agree with UKBOY, if you do not want to buy-Please don't invest in the IPO. But have the decency not to insult one of the best Companies in Sri Lanka.

Question to all those who are against PLCL IPO:
How many Companies do we have in CSE which has LKR 60-70 billion in assets and make 2.5-3 billion in recurring profits each year???? AND IF SO CAN YOU BUY ANY OF THOSE SHARES AT 8.2 times forward 2012 PER and 1.4 times 2012 PBV.

LFIN is trading @ PER of 6..

CSE.SAS · 9 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 6:02 pm

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gaya wrote:

LFIN is trading @ PER of 6..

LFIN Price(21-10-2011) : 139.90

EPS as of 2011-03-31: 14.73

Current P/E

Company : 9.4976

Sector : 9.5856

Pls correct me if i am wrong.Thax.

Marketsol · 10 PLC EMPLOYEE SCHME - SHARES AT ZERO VALUE Fri Oct 21, 2011 6:53 pm

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According to PLC prospectus, its employee were given shares at zero value. Will it bring down the price after IPO when the employees dispose their shares.......?

mark · 11 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 10:22 pm

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CSE.SAS wrote:

gaya wrote:

LFIN is trading @ PER of 6..

LFIN Price(21-10-2011) : 139.90

EPS as of 2011-03-31: 14.73

Current P/E

Company : 9.4976

Sector : 9.5856

Pls correct me if i am wrong.Thax.

http://forum.srilankaequity.com/t4920-my-pick-1-lfin#77817

Genting · 12 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 8:23 am

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True, PLC IPO is not a over valued IPO. But it is issuing 390mn shares! That makes it very liquid! Because of that the first market downturn after debut, will bring the price below IPO price.

But, if all market conditions becomes +ve, like it was till 2010 sep, this share will easily rise sky high!

ShareShares · 13 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 8:38 am

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CSE can do well as it was seen until Sept 2010 again, IPO need 8 billion , CSE has more credit to clear , may be billions , minimum sallaries , increased taxations, buget deficit, year end market coditions, global crisis may slow down slightly. It was gren on friday ,might see continuous green.

Academic · 14 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 9:57 am

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See here for my and some others' views

http://forum.srilankaequity.com/t11179-plc-prospectus-out

ShareShares · 15 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 6:33 pm

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good IPO.

dineshfernando · 16 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 10:04 pm

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Nowadays market turnover is below 1 billion. Peoples' Leasing IPO is 7BN. Then you can guess what would happen. It is better to buy in the open market. The price will certainly crash and you can bargain hunt it below 14. There will be huge selling pressure for this.

ShareShares · 17 Re: Market Downtrend and PLC IPO Sun Oct 23, 2011 9:02 am

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Banking and finance quarterly results are good. banking sector can perform well.

chamith · 18 Re: Market Downtrend and PLC IPO Mon Oct 24, 2011 1:34 am

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The IPO has a separate category for identified investors. This is mainly targeting at foreign funds and approved investment units. A significant % is allocated to this category and it wouldn't be that hard to get this IPO over subscribed.

LongTerm · 19 Re: Market Downtrend and PLC IPO Mon Oct 24, 2011 9:37 am

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mark wrote:

CSE.SAS wrote:

gaya wrote:

LFIN is trading @ PER of 6..

LFIN Price(21-10-2011) : 139.90

EPS as of 2011-03-31: 14.73

Current P/E

Company : 9.4976

Sector : 9.5856

Pls correct me if i am wrong.Thax.

http://forum.srilankaequity.com/t4920-my-pick-1-lfin#77817

The problem with LFIN is that it is the most leveraged Company out of the BIG 3 (CFIN, LOFC & LFIN) and trades 3x PBV (Last time i checked).

Therefore a slight adjustment in the interest rates will make it more vulnerable than the others.

Agree to your fact fact, it makes super profits.

High risk- High Returns

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Market Downtrend and PLC IPO

1 Market Downtrend and PLC IPO Fri Oct 21, 2011 9:15 am

dewminigamlath

2 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 9:43 am

econ

3 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 10:32 am

madurajithp

4 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 11:26 am

hawkeye

5 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 11:37 am

UKboy

6 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 12:22 pm

WildBear

7 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 2:59 pm

LongTerm

8 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 4:44 pm

gaya

9 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 6:02 pm

CSE.SAS

10 PLC EMPLOYEE SCHME - SHARES AT ZERO VALUE Fri Oct 21, 2011 6:53 pm

Marketsol

11 Re: Market Downtrend and PLC IPO Fri Oct 21, 2011 10:22 pm

mark

12 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 8:23 am

Genting

13 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 8:38 am

ShareShares

14 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 9:57 am

Academic

15 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 6:33 pm

ShareShares

16 Re: Market Downtrend and PLC IPO Sat Oct 22, 2011 10:04 pm

dineshfernando

17 Re: Market Downtrend and PLC IPO Sun Oct 23, 2011 9:02 am

ShareShares

18 Re: Market Downtrend and PLC IPO Mon Oct 24, 2011 1:34 am

chamith

19 Re: Market Downtrend and PLC IPO Mon Oct 24, 2011 9:37 am

LongTerm

20 Re: Market Downtrend and PLC IPO

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