Is the Pricing of Rs. 3 for TF&G is right?

Gaja · 1 Is the Pricing of Rs. 3 for TF&G is right? Fri Dec 02, 2011 11:12 pm

Gaja

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UBC bought 1.2 Billion Shares of TF & G for Rs 600 Million Investment (i.e cost per share is 50 cents) - http://www.cse.lk/cmt/uploadAnnounceFiles/5471320137865_1047.pdf, and now they try to sell 100 Million Shares at Rs 3 per share - http://www.cse.lk/cmt/upload_cse_announcements/8471322825768_.pdf, so is the UBC wanted to make Rs 2.50 Capital Gain for 50 cents they invested or i mess up the Billions with Millions!

Any observation on this area?

seyon · 2 Re: Is the Pricing of Rs. 3 for TF&G is right? Fri Dec 02, 2011 11:20 pm

seyon

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Gaja wrote:UBC bought 1.2 Billion Shares of TF & G for Rs 600 Million Investment (i.e cost per share is 50 cents) - http://www.cse.lk/cmt/uploadAnnounceFiles/5471320137865_1047.pdf, and now they try to sell 100 Million Shares at Rs 3 per share - http://www.cse.lk/cmt/upload_cse_announcements/8471322825768_.pdf, so is the UBC wanted to make Rs 2.50 Capital Gain for 50 cents they invested or i mess up the Billions with Millions!

Any observation on this area?

What a deal.... UBC recovering half of their investment by just selling 100Mn ( 8% of their stake). Are we fool to invest @ Rs.3

Slstock · 3 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 4:43 am

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glad you noticed. Iwas going to make a post on this.

UBC is making a killing. Hmm earning wise ubc is still not that attractive but looks like they are
going to make up for it.

SRIAS · 4 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 5:08 am

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slstock wrote:glad you noticed. Iwas going to make a post on this.

UBC is making a killing. Hmm earning wise ubc is still not that attractive but looks like they are
going to make up for it.

We are waiting for your post slstock..

you're the one of my inspiration to write about stock market.

Thanks.

Fresher · 5 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 8:04 am

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they could have easily price it at 10 or 15 ne. there are still people who would buy at those prices. *sigh*
i don't know whether to laugh or cry

Slstock · 6 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 8:07 am

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npp wrote:they could have easily price it at 10 or 15 ne. there are still people who would buy at those prices. *sigh*
i don't know whether to laugh or cry

Well they( UBC) have to back it with valuation to justify the price for us to decide. But then again, some do not look at valuations and will subscribe. I agree.

Fresher · 7 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 8:09 am

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slstock wrote:

npp wrote:they could have easily price it at 10 or 15 ne. there are still people who would buy at those prices. *sigh*
i don't know whether to laugh or cry

Well they( UBC) have to back it with valuation to justify the price for us to decide. But then again, some do not look at valuations and will subscribe. I agree.

I would say ONLY SOME look at valuations. look at all those shares which came through introductions. Reference price vs. First day price (NIFL,ESL .... )

Slstock · 8 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 8:22 am

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npp wrote:

slstock wrote:

npp wrote:they could have easily price it at 10 or 15 ne. there are still people who would buy at those prices. *sigh*
i don't know whether to laugh or cry

Well they( UBC) have to back it with valuation to justify the price for us to decide. But then again, some do not look at valuations and will subscribe. I agree.

I would say ONLY SOME look at valuations. look at all those shares which came through introductions. Reference price vs. First day price (NIFL,ESL .... )

Yes, there are so many other factors ( public holding , illiquidity manipulation etc) which can make an overvalued share rise even further than it current over valued price.

Ex: Below are 2 shares which were overvalued at IPO/Introduction but went opposite directions

Came down : SHL at 29 came down drastically.
NIFL : Suggest price by company was Rs 1.7! Traded over RS 10.

ESL also same. Suggested price Rs 20 but trading at RS 69.

Still CSE is not value based. Its speculation and manipulator abused.

Last edited by slstock on Sat Dec 03, 2011 9:37 am; edited 1 time in total

Fresher · 9 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 8:29 am

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slstock wrote:
Yes, there are so many other factors ( public holding , illiquidity manipulation etc) which can make an overvalued share rise even further than it current over valued price.

Ex: Below are 2 shares which were overvalued at IPO/Introduction but went opposite directions

Came down : SHL at 29 came down drastically.
NIFL : Suggest price by company was Rs 1.7! Traded over RS 10.

ECL also same. Suggested price Rs 20 but trading at RS 69.

Still CSE is not value based. Its speculation and manipulator abused.

interesting but have you noted that lately, IPOs and introductions have gone opposite directions?
the two you noted for example.

SHL - PP was at a lower price than the IPO. Although oversubscribed, it came down.
NIFL - there were share splits prior to the introduction. They let the players decide.
Introductions have become a speculative game. No one knows where it will start. sometimes it pays off sometimes it burns. Is this healthy?
Maybe pre open orders must not be accepted for introductions. what do you think?

Slstock · 10 Re: Is the Pricing of Rs. 3 for TF&G is right? Sat Dec 03, 2011 8:43 am

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npp wrote:

slstock wrote:
Yes, there are so many other factors ( public holding , illiquidity manipulation etc) which can make an overvalued share rise even further than it current over valued price.

Ex: Below are 2 shares which were overvalued at IPO/Introduction but went opposite directions

Came down : SHL at 29 came down drastically.
NIFL : Suggest price by company was Rs 1.7! Traded over RS 10.

ESL also same. Suggested price Rs 20 but trading at RS 69.

Still CSE is not value based. Its speculation and manipulator abused.

interesting but have you noted that lately, IPOs and introductions have gone opposite directions?
the two you noted for example.

SHL - PP was at a lower price than the IPO. Although oversubscribed, it came down.
NIFL - there were share splits prior to the introduction. They let the players decide.
Introductions have become a speculative game. No one knows where it will start. sometimes it pays off sometimes it burns. Is this healthy?
Maybe pre open orders must not be accepted for introductions. what do you think?

Yes Introductions are likely for higher manipulation as the price volatility is usually dependent on share liquidity and initial start off price. ESL was another case.

Btw, I am still try to buy SFCL but no success.

IPOs : we know atleast a specific number was bought at a specific IPO price.

For IPOs , share number and PP are also some other factors which effect the price and sentiment.

PLC is a good fundamental share but too many shares on market. So we see the consequence.

I guess the success to stock trading ( not long term investment) is not always how many books we read on fundamental or techinical analysis but sometimes the experience we have studying human behavior and external factors.