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Sri Lanka Equity Forum » Stock Market Talk » Any reason behind volatility of SAMP.N?

Any reason behind volatility of SAMP.N?

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1Any reason behind volatility of SAMP.N? Empty Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 9:42 am

apollo5001

apollo5001
Equity Analytic
Equity Analytic
Hi, What do you think the reason behind price volatility and unstability of SAMP.N? Most of the time the (an active day) spread is about Rs.8-10 and turnovers are relatively low. Can this be justified for such a good financial institute?. It's financial records tells a different story

2Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 2:52 pm

anubis


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
It's a mystery! one of the best banking shares and it has been falling like forever Sad

Probably because of the general market mentality. I think (may be) a lot of retail investors are exiting from this share in order to make more money from other speculative shares. As to where this down-trend will end, I have no clue....

I have a few remaining SAMP shares, planning to convert them to LLUB soon (seems like a safer option).

Cheers!

3Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 5:05 pm

hawklk


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
It also employee share option.....Just giving them way. I think.

Their last financial statement states as below

As approved by the shareholders of the Bank at the Extraordinary General Meeting held on 21.08.2010, Sampath Bank will implement the ESOP-
2010 in the year 2011, having achieved the targets set for 2010. Accordingly, the Bank will issue 3,056,159 share options to be offered to the eligible staff, at 2% of the shares in issue at the time of structuring the ESOP. The shares will be priced at Rs. 80/- per share. The option
exercisable period would be 3 years, from the entitlement date of 30.06.2011 fixed in the scheme. In the event of options being fully exercised by the eligible staff, the stated capital of the Bank would rise by Rs. 244.5 Mn, as a result of the consideration to be paid by the staff under the ESOP.
No financial assistance will be provided by the Bank to the staff to purchase the share options.
524,924 shares at Rs.80/- each have been alloted to the eligible staff of the Bank as at 30th September 2011.

4Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 5:21 pm

anubis


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
[quote="hawklk"]
As approved by the shareholders of the Bank at the Extraordinary General Meeting held on 21.08.2010, Sampath Bank will implement the ESOP-
2010 in the year 2011, having achieved the targets set for 2010. Accordingly, the Bank will issue 3,056,159 share options to be offered to the eligible staff, at 2% of the shares in issue at the time of structuring the ESOP. The shares will be priced at Rs. 80/- per share. The option
exercisable period would be 3 years, from the entitlement date of 30.06.2011 fixed in the scheme. In the event of options being fully exercised by the eligible staff, the stated capital of the Bank would rise by Rs. 244.5 Mn, as a result of the consideration to be paid by the staff under the ESOP.
No financial assistance will be provided by the Bank to the staff to purchase the share options.
524,924 shares at Rs.80/- each have been alloted to the eligible staff of the Bank as at 30th September 2011.
[/quote]

So, basically the eligible employees of SAMP will buy shares at 80/- each and dump them at current prices at will? Any ideas as to why SAMP decided to go for such a scheme? I mean for existing retail investors like us, this is a huge blow isn't it?

If this is the case indeed, then we should be worried about investing in SAMP as much as we're worried about investing in GREG or any other speculative shares.

Can someone kindly name a few fundamentally strong companies which actually care about retail investors like us? Evil or Very Mad

5Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 5:49 pm

illuminati


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@anubis wrote:
@hawklk wrote:
As approved by the shareholders of the Bank at the Extraordinary General Meeting held on 21.08.2010, Sampath Bank will implement the ESOP-
2010 in the year 2011, having achieved the targets set for 2010. Accordingly, the Bank will issue 3,056,159 share options to be offered to the eligible staff, at 2% of the shares in issue at the time of structuring the ESOP. The shares will be priced at Rs. 80/- per share. The option
exercisable period would be 3 years, from the entitlement date of 30.06.2011 fixed in the scheme. In the event of options being fully exercised by the eligible staff, the stated capital of the Bank would rise by Rs. 244.5 Mn, as a result of the consideration to be paid by the staff under the ESOP.
No financial assistance will be provided by the Bank to the staff to purchase the share options.
524,924 shares at Rs.80/- each have been alloted to the eligible staff of the Bank as at 30th September 2011.

So, basically the eligible employees of SAMP will buy shares at 80/- each and dump them at current prices at will? Any ideas as to why SAMP decided to go for such a scheme? I mean for existing retail investors like us, this is a huge blow isn't it?

If this is the case indeed, then we should be worried about investing in SAMP as much as we're worried about investing in GREG or any other speculative shares.

Can someone kindly name a few fundamentally strong companies which actually care about retail investors like us? Evil or Very Mad

Keep whatever money you have in time deposits. The value of most of the shares including fundamentally strong counters will be at least 10% or more cheaper by the year end.

6Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 11:37 pm

apollo5001

apollo5001
Equity Analytic
Equity Analytic
@ illuminati - Are you serious or just kidding?? 10%?

7Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Sun Jan 15, 2012 11:41 pm

apollo5001

apollo5001
Equity Analytic
Equity Analytic
@anubis wrote:
@hawklk wrote:
As approved by the shareholders of the Bank at the Extraordinary General Meeting held on 21.08.2010, Sampath Bank will implement the ESOP-
2010 in the year 2011, having achieved the targets set for 2010. Accordingly, the Bank will issue 3,056,159 share options to be offered to the eligible staff, at 2% of the shares in issue at the time of structuring the ESOP. The shares will be priced at Rs. 80/- per share. The option
exercisable period would be 3 years, from the entitlement date of 30.06.2011 fixed in the scheme. In the event of options being fully exercised by the eligible staff, the stated capital of the Bank would rise by Rs. 244.5 Mn, as a result of the consideration to be paid by the staff under the ESOP.
No financial assistance will be provided by the Bank to the staff to purchase the share options.
524,924 shares at Rs.80/- each have been alloted to the eligible staff of the Bank as at 30th September 2011.

So, basically the eligible employees of SAMP will buy shares at 80/- each and dump them at current prices at will? Any ideas as to why SAMP decided to go for such a scheme? I mean for existing retail investors like us, this is a huge blow isn't it?

If this is the case indeed, then we should be worried about investing in SAMP as much as we're worried about investing in GREG or any other speculative shares.

Can someone kindly name a few fundamentally strong companies which actually care about retail investors like us? Evil or Very Mad

COMB.N and DIST.N seems good to me with the limited knowledge I have... I totally agree with you on comparison of SAMP and GREG...Any thoughts on DFCC??

8Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Mon Jan 16, 2012 2:40 am

anubis


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@apollo5001: Please don't take me wrong, I'm not saying SAMP and GREG are like the same. But these ESOPs sound to me like private placements... we retail investors get punished Sad

This highlights another issue; you have to be in touch with the company (i.e. be informed about ESOPs etc.) at all the time, so that you can drop everything the moment you hear about an ESOP.

Another point is, I doubt the decrease in price of SAMP is entirely due to the ESOP. I haven't done a complete analysis but I can hardly believe that the drop in share price can be justified by the number of shares issued at the lower price. Can someone shed some light on this?

Finally, don't depend on advises / opinions on public forums to make investment decisions Wink The general opinion about DFCC is that it is an OK share at the current price (please search for all the threads on DFCC), but I have no confidence about any banking share given the current market situation.

Cheers!

9Any reason behind volatility of SAMP.N? Empty Re: Any reason behind volatility of SAMP.N? on Mon Jan 16, 2012 10:05 am

apollo5001

apollo5001
Equity Analytic
Equity Analytic
Thanks anubis

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