Can someone explain different trends between Seylan Bank and Lankem Developments…

banarahu

banarahu

Manager - Equity Analytics

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When they published notice a 1:15 right issue, Lankem started to go up and up quickly…
But in the other hand Seylan bank published a notice about right issue of 3:1 and it started to go down quickly… Why it is not going like Lankem…
What is the different between these two? Experts, can someone explain this… Crying or Very sad

TelesHope

TelesHope

Senior Equity Analytic

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banarahu wrote:When they published notice a 1:15 right issue, Lankem started to go up and up quickly…
But in the other hand Seylan bank published a notice about right issue of 3:1 and it started to go down quickly… Why it is not going like Lankem…
What is the different between these two? Experts, can someone explain this…

LDEV rights effect is related to utter foolishness of the traders/investors...
while the SEYB effect is due to the foolish decission on the pricing of rights by the management....

tkc

tkc

Assistant Vice President - Equity Analytics

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banarahu wrote:When they published notice a 1:15 right issue, Lankem started to go up and up quickly…
But in the other hand Seylan bank published a notice about right issue of 3:1 and it started to go down quickly… Why it is not going like Lankem…
What is the different between these two? Experts, can someone explain this…

LDEV rights are much attractive for me.... (I dont hv single LDEV share)

banarahu

banarahu

Manager - Equity Analytics

Posts : 230
Equity Stars : 5120
Reputation : 18
Join date : 2011-03-16

but any other reasons... Sad

it must have some reasons. Why people think like that, because Lankem rights are more valuable than Seylan rights or some other benefits...

UKboy

UKboy

Senior Vice President - Equity Analytics

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banarahu wrote:When they published notice a 1:15 right issue, Lankem started to go up and up quickly…
But in the other hand Seylan bank published a notice about right issue of 3:1 and it started to go down quickly… Why it is not going like Lankem…
What is the different between these two? Experts, can someone explain this…

My point of view.

LDEV Right issues will give intial benefits to the investors. Why they need money? Because mainly they need to add few plantation companies under their belt. Investors can get the benefits initially. LDEV net asset will increase & also the profits.

SEYB Right issue: The investor has to wait much longer time to get the benefits from the money they spend on right issues. Why SEYB needs money? Because they are planning to reduce the work force & this VRS along cost them staggering Rs 700 millions. Most importantly this is not an direct investment. Although Seylan Bank is getting better and better everyday, still the company is in a devoloping stage.

On the other hand most of the SEYB:x holders are small retailers & most of them struggling at the moment due to credit clearance. So no money to buy right issues. But one thing I can’t really understand is why on earth they declared Rs 1.00 dividend

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Can someone explain different trends between Seylan Bank and Lankem Developments…

1 Can someone explain different trends between Seylan Bank and Lankem Developments… Wed Mar 23, 2011 11:43 am

banarahu

2 Re: Can someone explain different trends between Seylan Bank and Lankem Developments… Wed Mar 23, 2011 5:55 pm

TelesHope

3 Re: Can someone explain different trends between Seylan Bank and Lankem Developments… Wed Mar 23, 2011 6:45 pm

tkc

4 Re: Can someone explain different trends between Seylan Bank and Lankem Developments… Wed Mar 23, 2011 9:00 pm

banarahu

5 Re: Can someone explain different trends between Seylan Bank and Lankem Developments… Thu Mar 24, 2011 3:39 am

UKboy

6 Re: Can someone explain different trends between Seylan Bank and Lankem Developments…

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