FLCH, GRAN and DPL what is your idea.

FLCH, GRAN and DPL is at very low price.
What is your general idea about these stocks.

FLCH
PBV attractive
FPE Ratio too high

GRAN
PBV attractive
FPE attractive

DPL
PBV not bad
FPE horrible(Last 5 quarter negative EPS)

I think GRAN & DPL are good for short term.But you have to buy at right time.FLCH is good for long long term...

prasadrmb wrote:FLCH, GRAN and DPL is at very low price.
What is your general idea about these stocks.

Due to certain reasons I mat not write directly as before.

This is my personal view about FLCH.

It had cash-able assets near 1.50 pear share. They have Rubber, tea , timber plantations & new hydro power stations. Asset value is 4.80.
That means if you take I share you have cash 1.50 + other assets 3.30. Hence when you pay 1.50 per share you are buying Tea, Rubber, Timber and Hydro-power FREE of charge. !

That may be the reason they named it FREE Lanka !

Then why this Kolevary ?

1. Their EPS is low due to losses in Tea. ( This may ease in future because of down Rupee )

2. Cost of 1 share for the main holders is about 1.00 . But they have not sold them. There were further 300 million shares spread among pro-IPO holders costing 1.00. I FEEL some of them are disposing it at this low price - Just an assumption.

3. high percentage of Timber in assets.

4. Due to the issuing of large amount of shares among vast crowd.

I feel some people are collecting without showing their interest.

FLCH will get further income from hydro-power when they start new stations.

Somehow, this will struggle before climbing because of high liquidity.

(Note . As per latest report released this week cash at bank is now about 1/- as they bought some asset)

Chinwi wrote:That may be the reason they named it FREE Lanka !

E kaale indalama mekata FREE Lanka kiyala thmayi kiyuwe nam....samaharavita anaagathayata galapena vidiyata nama dammada ehema nathnam Rs1ta shares deepu ayata FREE labunu nisa mema nama dammada danne naha neda ?

Anyway thanks for your opinion.

Chinwi wrote:Due to certain reasons I mat not write directly as before.

This is my personal view about FLCH.

It had cash-able assets near 1.50 pear share. They have Rubber, tea , timber plantations & new hydro power stations. Asset value is 4.80.
That means if you take I share you have cash 1.50 + other assets 3.30. Hence when you pay 1.50 per share you are buying Tea, Rubber, Timber and Hydro-power FREE of charge. !

That may be the reason they named it FREE Lanka !

Then why this Kolevary ?

1. Their EPS is low due to losses in Tea. ( This may ease in future because of down Rupee )

2. Cost of 1 share for the main holders is about 1.00 . But they have not sold them. There were further 300 million shares spread among pro-IPO holders costing 1.00. I FEEL some of them are disposing it at this low price - Just an assumption.

3. high percentage of Timber in assets.

4. Due to the issuing of large amount of shares among vast crowd.

I feel some people are collecting without showing their interest.

FLCH will get further income from hydro-power when they start new stations.

Somehow, this will struggle before climbing because of high liquidity.

(Note . As per latest report released this week cash at bank is now about 1/- as they bought some asset)

But why no news about the new hotel and office complex?

Chinwi- just interested to know that overall all power producers have shown great decline in revenue? what is the reason for this?

npp wrote:Chinwi- just interested to know that overall all power producers have shown great decline in revenue? what is the reason for this?

I too would like to know this. There was good rain fall for this quarter.

May be LECO didn't buy from the companies?or payed them less money or some thing similar?

ccsentha wrote:

npp wrote:Chinwi- just interested to know that overall all power producers have shown great decline in revenue? what is the reason for this?

I too would like to know this. There was good rain fall for this quarter.

May be LECO didn't buy from the companies?or payed them less money or some thing similar?

Note 12 in the quarterly of VPEL says,

Code:

The Company experienced a decrease in the revenue by 29% as a result of two reasons.
That is due to the decrease in power generation by 22.5% as a result of reduced rainfall and
decrease in tariff paid by the Ceylon Electricity Board for year 2011, which were beyond the
control of the Management.

http://www.cse.lk/cmt/upload_report_file/454_1337943369435.pdf

thanks monster. any outlook for this situation in the future?

Monster wrote:

ccsentha wrote:

npp wrote:Chinwi- just interested to know that overall all power producers have shown great decline in revenue? what is the reason for this?

I too would like to know this. There was good rain fall for this quarter.

May be LECO didn't buy from the companies?or payed them less money or some thing similar?

Note 12 in the quarterly of VPEL says,

Code:

The Company experienced a decrease in the revenue by 29% as a result of two reasons.
That is due to the decrease in power generation by 22.5% as a result of reduced rainfall and
decrease in tariff paid by the Ceylon Electricity Board for year 2011, which were beyond the
control of the Management.

http://www.cse.lk/cmt/upload_report_file/454_1337943369435.pdf

Will the government pay the full amount in future? any idea?

how badly is this going to affect the hydro power companies?

ccsentha wrote:
Will the government pay the full amount in future? any idea?

how badly is this going to affect the hydro power companies?

npp wrote:thanks monster. any outlook for this situation in the future?

I would like to ask the same question, if anyone done any research on this sector. I have a plan to invest one of the company in this sector, but need to study before invest.

FLCH, GRAN and DPL are not attractive for short term.. If you have holding power there are attractive..
This is my personal view

Both Giddawa and AgraOya sell electricity on tariffs set using avoided-cost methodology which fluctuates with the movements in oil prices. This works as a natural hedge between thermal and hydropower sectors as the
movement in oil prices inversely impact the performances of the two sectors.

Sector Outlook and Future
The Power generation sector will become a key catalyst when the country moves into a high growth era.Although over 86% of the country’s households are electrified,the per-capita electricity consumption in SriLanka even in comparison to other SouthAsian countries stands amongst the lowest. If the per-capita income level of Sri Lankans increases at a faster pace as widely anticipated, it appears obvious that the household electricity consumption will rise. Further to this, greater economic activity could also fuel greater electricity demand from the industry front too. Since a positive correlation exists between national growth and electricity demand, the demand for electricity in post-war SriLanka in the medium-term is poised to increase.

As per the Long-term Generation Plan (LTGP) of the Ceylon Electricity Board (CEB) the country’s electricity demand is estimated to increase by 5,430MW by 2022. We believe this to be considerably higher now as the LTGP estimates were prepared before the war was concluded. Whilst 2,740MW of this demand
is expected to be met through coal-power plants, we believe that having coal-fired power generation to such a magnitude albeit its perceived lower operational cost compared to oil-burning power plants could pose different challenges especially on the environment front. In this context, it is seemingly imperative that efforts to maximise usage of renewable energy resources to generate power are fast tracked.It is not yet clear, whether the long-term demand for power generation to be met through larger thermal plants will be met through Independent Power Producers (IPP) or not. It can be assumed that some portion of the
requirement will at least be met through the IPPs. On the other-hand it is quite evident that a bulk of the renewable energy power generation - be it hydropower, wind or bio-mass, will be met through IPPs.

During the year, the previous National Energy Policy target to reach 10% of the country’s energy generation through renewable energy sources by 2015 was revised upwards to reach 20% by 2020. This we believe is a
positive effort. Although some measures taken in the policy making front are positive, there were many negative signs that emerged during the year especially against the interest of the hydropower sector. Firstly, there was a significant reduction in the hydropower tariff for the projects that would be signed up in 2011.

We believe at this tariff most remaining hydropower projects will be commercially unviable. For the sake of the sector we hope that the tariff will be revised upwards at least in the next year. Secondly,we witnessed a growing number of reports on political interferences especially at the provincial level. Whilst it is meant to be the role of Sri Lanka Sustainable Energy Authority to operate as a catalyst to promote the
sector, their engagement to resolve the issues faced by the developers is painfully slow.

MD Review http://www.cse.lk/cmt/upload_report_file/881_1308221591635.pdf

Secondly,we witnessed a growing number of reports on political interferences especially at the provincial level.

This is the curse of our nation.

FLCH is building a multi story office complex. I saw the construction site near the Borrella IOC fuel station. I think the piling is completed by now, and construction on progress. This also will add to future recurring earning of FLCH further increasing their assets and revenue. Does any one know the progress of their two boutique hotels ?.

WildBear wrote:Does any one know the progress of their two boutique hotels ?.

I am not sure , but I think IPO money is with them as short term investments.

Dr. Senthivil is at the 5th top 20 shareholder list. I was told to buy this share at 1.5-1.80

there seems to be a refreshed interest in flch again

turnover is more than 5 million of flch...hva the same...what are the predictions

oh_my_god wrote:Dr. Senthivil is at the 5th top 20 shareholder list. I was told to buy this share at 1.5-1.80

good range to buy & FLCH NAVPS is 4.70

market bull wrote:I think GRAN & DPL are good for short term.But you have to buy at right time.FLCH is good for long long term...

prasadrmb wrote:FLCH, GRAN and DPL is at very low price.
What is your general idea about these stocks.

I agree with you
But you have to buy at right time.