Will PMB reach Rs 80 per share?

Monster wrote:

seyon wrote: I heard that, now ERI also started to selling their stake.

There was a 2 million crossing at 32/-. It's either ERI or Mr DJ is transferring to some other director in his own company.

Tiger wrote:

slstock wrote:

Tiger wrote:Look at how they have reduced the losses, has it come from sustainable sources or not? Study financials like a businessman, not just numbers.
I have seen many members say PE so low why such and such share is not going up.

"I have seen many members say PE so low why such and such share is not going up."

Would you believe it is due to present crowd psycology. More people believe in short term profit vs long term investment. When How big shots buying into companies and pushes prices up, retailers also follow.

Regarding PMB:
"Look at how they have reduced the losses, has it come from sustainable sources or not? Study financials like a businessman, not just numbers."

Then you could say it is on the path of recovery. Saying undervalued is not justifiable. Then what do you say to shares like NTB,MBSL which have profit growing ( not reducing losses).

I think its due to market momentum. All investors including institutional, were on buying sphere and each didn't know what they were buying, because market kept going up. Now every body has pause for a moment thanks to credit issue and looking at what the crap we bought. Mkt is at this stage now, that is why you see many major shareholders reducing their stake.

Second point is that company size does matter PMB is much smaller compared to both NTB and MBSL.

slstock wrote:

Tiger wrote:

slstock wrote:

Tiger wrote:Look at how they have reduced the losses, has it come from sustainable sources or not? Study financials like a businessman, not just numbers.
I have seen many members say PE so low why such and such share is not going up.

"I have seen many members say PE so low why such and such share is not going up."

Would you believe it is due to present crowd psycology. More people believe in short term profit vs long term investment. When How big shots buying into companies and pushes prices up, retailers also follow.

Regarding PMB:
"Look at how they have reduced the losses, has it come from sustainable sources or not? Study financials like a businessman, not just numbers."

Then you could say it is on the path of recovery. Saying undervalued is not justifiable. Then what do you say to shares like NTB,MBSL which have profit growing ( not reducing losses).

I think its due to market momentum. All investors including institutional, were on buying sphere and each didn't know what they were buying, because market kept going up. Now every body has pause for a moment thanks to credit issue and looking at what the crap we bought. Mkt is at this stage now, that is why you see many major shareholders reducing their stake.

Second point is that company size does matter PMB is much smaller compared to both NTB and MBSL.

First point make sense.

Second point: am not sure what you are trying to say. Yes PMB is smaller but that does not make it undervalued as it was what we were discussing. LOLC exited this share at RS 21. They did for a reason. As mentioned PMB is improving its financial slowly. But that does not make it undervalued going with present situation. But yes I agree since there are lesser shares and holding in PMB, it can be easily manipulated compared NTB or MBSL. Thats what happened today.

cse.alpha wrote:PMB - A quick look at the numbers (for what its worth, or not) : is it worth Rs 30 ?

FY11 group net loss of -Rs 62 m - unaudited
FY10 net loss of -Rs 136 m

Book value of Rs 12.6 per share @ 31st March 2011

People's Bank & People's Leasing held 39% stake in PMB, with LOLC holding 20% (definitely sold today) and GREG having 7% (may have sold today) - no shareholder group had more than 50% as at 31st March 2011, so takeover interest had risen in the past

23 mn of the company's 37.5 mn issued shares traded today

CSE's Rajeeva Bandaranayake takes office as new CEO of PMB from next month

One-off profit of Rs 142 m booked on sale of People's Merchant Finance Co to Capital Alliance in May 2011 - cash inflow of Rs 430 m

Purchase of ABC Credit Card Company in FY10 depressed PMB performance - but it gained Rs 452 mn land and building in Navam Mawatha through this transaction, and PMB head office is located here now

seyon wrote:

One think we have to consider a single share holder can not hold more than 15% as per the banking act, so there might me a possibility People bank and the person who bought from LOLC might passed some qty to the followers.