FLCH will be good

The Market is so unpredictable and no one can predict the Market perfectly. You never know we might see FLCH trading around 6 after couple of weeks and no one will even remember that the Directors dumped their shares at the nominal value. There are so many examples of weird Direct dealings in the recent pass. I personally feel FLCH is worth at 5 to 4.9 levels. Also, in the context of some of the highly overvalued shares at CSE, FLCH seems to be a good pick. I have collected at 4.9.

Even for a medium term/long term also FLCH will be good. I also start collecting around 4.8 and 4.9 to keep as lock for the medium term.

Free Lanka Capital Holdings has reported exceptional results in the year ended March 2011. Recording a gross revenue of Rs 6.5 billion for the Group during the financial year 2010/11 as compared with Rs 4.9 billion the previous year - a 33 percent increase, the Group's provisional financial results show a profit increase of over 300 percent.

Profit before tax amounted to Rs 1,374 million in 2010/11 as against Rs 341 million the previous year which is an increase of 303 percent. Profit after tax recorded a 319 percent increase year on year with the figure for 2010/11 at Rs 1,270 million compared to Rs 303 million in the earlier financial year.

The group's earnings are mainly from the plantation sector that is Maturata and Pussellawa Plantations. These two plantations comprise around 19,000 acres of tea and 13,000 acres of rubber. To take advantage of high rubber prices the group has completed an aggressive replanting exercise which commenced in 2005 wherein a sum of Rs.1 bn has been invested in new planning and replanting of rubber.

When technically analyze the current patterns I feel FLCH will have a good short term as well as a medium term prospects. Fundamentally it's a strong company and are planning to expand their operations. Leveraging assets and opportunities available on the estates Free Lanka Capital Holdings has embarked on a number of mini hydro power projects. Presently its subsidiary Hydro Power Free Lanka generates approximately 3.2 MW of electricity in its mini hydro power plants in Sanquhar and Delta. The company has signed standard power purchase agreement with the Ceylon Electricity Board for two projects,
Thebuwana at Kuruwita and Stellenberg at Gampola and the construction has already commenced. Power generation is scheduled to commence in November this year. Construction of two more projects at Ragala will commence soon and work is due to be completed by April 2012.
The Group is also into real estate and commercial development through Free Lanka Properties (Pvt) Ltd. The first project undertaken in this sector is the development of a commercial complex in Borella with 80,000 sq. ft of rentable space. The property for this complex has already been acquired by the Company.

Leisure is another sector that the Group is developing through two subsidiary companies. One is Tea Leaf Resort Holding (Pvt) Ltd., which will develop star class boutique style hotels in Kandy and Padukka areas which offer accommodation to a total of 92 rooms.

The main shareholders of Fee Lanka Capital Holdings are Free Lanka Capital Ltd. (70 %), Browns Investments Ltd. (4.12%) and Perpetual Holdings Ltd. (4.27%). Browns Investments Ltd. and Perpetual Holdings Ltd. own the total share capital of Free Lanka Capital Ltd.

Investors should have a magic eye to foresee prospective gems like this and collect when they are at discounted prices.

Disclosure: I currently hold 80,000 FLCH at 4.80 and 60,000 at 5.90

DISCLAIMER:
The above statement is not meant to influence anyone's decision to buy/sell above stock.

Leo_pold wrote:

You may be right but I bid to differ. These people are seasoned traders on the market and they would never ever do anything without a good profit or an ulterior ambition. With so many IPO's coming, I don't think that they sold their shares below the FLCH's IPO price to buy shares from Brown's IPO. Why they do that on a loss, when they had enough chance to sell at a higher price? Since they are Directors of Browns, there's no way they heard about their own IPO just a few days ago and needed to panic sell to buy from that IPO on such a hurry.

I think there's still something fishy about this share. Besides, if it's going to be manipulated, this is one of the most fundamentally sound shares to be manipulated in the recent times, in comparison to CSF and PMB..

I have some FLCH, so my views are bias. Still it's just what I feel.

Thanks..

These big fellas got the shares way below the IPO price.. even there was a PP @ 4.70.. so at least if they buy around taht price selling at 4.90-5.0 gives them a decent profit right??

Yes it seems good below IPO price. I collected 25000@4.90

I got FLCH at Private placement price today. how wonderful!

I also ordered. but still not filled. Hope will be lucky. so means all shares are going beyond the IPO valve even after some days trading ???

xmart wrote:I got FLCH at Private placement price today. how wonderful!

I'm too got it @ Pvt Plcmnt price .. will it go beyond Pvt Plcmnt ???

65000 @ 4.70.. Praying sooo hard that atleast this would make me smile..

I too increased my qty by 50% today with PP price. My avr was 5.27, now its 5.00. Thinking of buying more @ 4.50-4.60 tomorrow if go beyond PPP.

Now I wanted to increase it to become 5% of my portfolio and forget about it for 2-3 years.
I will not sell this year unless it climb into a unrealistic level in a run.

Chinwi wrote:I too increased my qty by 50% today with PP price. My avr was 5.27, now its 5.00. Thinking of buying more @ 4.50-4.60 tomorrow if go beyond PPP.

Now I wanted to increase it to become 5% of my portfolio and forget about it for 2-3 years.
I will not sell this year unless it climb into a unrealistic level in a run.

me too want to buy. but no money left all portfolio are red now..

econ wrote:
me too want to buy. but no money left all portfolio are red now..

Hang in there Econ. Your day ( and my day ) will come soon.

I too entered this counter today at 4.70. IMO this is a good share to keep medium to long term.

I also hold FLCH 23,000 at ave.price 5.02 as at today. I hope to collect more around PP price of 4.70.

How long it will take to up atleast Rs:7/=

Because everyone has bought it, it will not go up soon. Wait and see.

fingers crossed

Dont Forget Friends, Their net profit last year was over one BILLION. And NAV is around 4.60. Price is 4.70.What else we need to justify this counter at present price level?

kam2011 wrote:Dont Forget Friends, Their net profit last year was over one BILLION. And NAV is around 4.60. Price is 4.70.What else we need to justify this counter at present price level?

Seems that we can enter below private placement price, it will slide more check the market depth by price in DirectFN. 1.5 mil shares for 4.70 only 226,00 bids @ 4.60, high possibility it may hit 4:50 today....

slstock wrote:

econ wrote:
me too want to buy. but no money left all portfolio are red now..

Hang in there Econ. Your day ( and my day ) will come soon.

I also join with u....Wish us all the best....!!!!

high possibility it may hit 4:50 today....[/quote]

Well it did..

I bought for 4.60

All seems to be on the buying side. I wonder who is selling FLCH even below the PP price.

StocksWatch wrote:All seems to be on the buying side. I wonder who is selling FLCH even below the PP price.

I have the same question, who's selling these large quantities at such a loss? Is someone giving away FLCH for charity or something??

hey i did buy below 4.70 ,but is their a reason sell this much low .
is FLCH going down ,
but it cant be as they just out from IPO
:(L:(

I bought at 5.70

bettersrilanka wrote:I bought at 5.70

dont know what will happen macho

Maybe some PP guys have sold their stakes.

http://investors.lk/12515/FLCH+%28Free+Lanka+Capital+Holdings%29+%26+Tomorrow+!!!

bettersrilanka wrote:I bought at 5.70