The Finance Company may Take Off

upendra · 1 The Finance Company may Take Off Tue Jun 21, 2011 6:03 pm

upendra

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There was an article in the daily mirror today with regard to, The Finance considering applying for Banking License and had already applied for a foreign currency deposit accepting license. According to the article the new management has taken many steps to turn around, The Finance as a strong profitable financial power house.Like many other financial companies (Today CFL,yesterday SFL) recently entered the market,TFC will move up according to my view.Today, TFC.N & TFC.X saw a substantial increase with large volumes traded since a long time.I believe this is a good counter to watch tommorrow.Thanks

Last edited by optimistic on Tue Jun 21, 2011 8:56 pm; edited 1 time in total (Reason for editing : title was sort of misleading)

Tiger · 2 Re: The Finance Company may Take Off Tue Jun 21, 2011 8:10 pm

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If TFC make a move drop it, if you have it in your PF because in the medium term this will fall back to current levels again.

This my personal view please take professional advice before making your investment decisions.

widanage · 3 Re: The Finance Company may Take Off Tue Jun 21, 2011 8:27 pm

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upendra wrote:There was an article in the daily mirror today with regard to, The Finance considering applying for Banking License and had already applied for a foreign currency deposit accepting license. According to the article the new management has taken many steps to turn around, The Finance as a strong profitable financial power house.Like many other financial companies (Today CFL,yesterday SFL) recently entered the market,TFC will move up according to my view.Today, TFC.N & TFC.X saw a substantial increase with large volumes traded since a long time.I believe this is a good counter to watch tommorrow.Thanks

I have seen the article but i believe that its a mere propaganda. Because they should maintain the capital adequacy ratios and a provision on risk weighted assets.

1. Do you think that CBSL is dumb enough to provide a banking license to a company with a negative net worth?
2. The only way to increase the net worth is to infuse fresh capital or raise more money from public.

Forcibly converted non voting shares @ 20/- has come down by almost 40%
Recent offer for subscription by TFC is the only one which, did not close on the first day.

Under the given circumstances it will take at least 2-3 years (perhaps 5) to come out form the present situation (I am talking about the company not the share price. Do not be surprised if hare price go up to 500/- look at BINN for an example)

Are they nuts or are we...?
Very Happy

Last edited by widanage on Tue Jun 21, 2011 8:30 pm; edited 1 time in total (Reason for editing : correction)

optimistic · 4 Re: The Finance Company may Take Off Tue Jun 21, 2011 11:13 pm

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Mr. Updendra,

it seems like you have been actively promoting the finance company for a long time. it is a shame i realized that today only. refrain from doing what you are doing, or else serious actions will be taken against you.

ISURU · 5 Re: The Finance Company may Take Off Tue Jun 21, 2011 11:16 pm

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upendra wrote:There was an article in the daily mirror today with regard to, The Finance considering applying for Banking License and had already applied for a foreign currency deposit accepting license. According to the article the new management has taken many steps to turn around, The Finance as a strong profitable financial power house.Like many other financial companies (Today CFL,yesterday SFL) recently entered the market,TFC will move up according to my view.Today, TFC.N & TFC.X saw a substantial increase with large volumes traded since a long time.I believe this is a good counter to watch tommorrow.Thanks

What is the source for a such a sensitive information?

mark · 6 Re: The Finance Company may Take Off Tue Jun 21, 2011 11:35 pm

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TFC about to take off; considers applying for Banking license
Posted: 20 Jun 2011 05:58 PM PDT
By Jithendra Antonio

One of the oldest finance houses in the country, The Finance PLC is yet to take off ground as a bank while the company is an aggressive recovery phase under the new management, a company official said.

Speaking to the Mirror Business the Chairman, Preethi Jayawardena said the company may consider applying for banking license in due course, after turning it around as a strong profitable financial power house.

Back in March this year, when Preethi Jayawardena led board was appointed to TFC, it was reported that the company had already applied for a foreign currency deposit accepting license.

According to Jayawardena, TFC is also negotiating with Central Bank to restructure Ceylinco Sussex group, as Ceylinco Sussex had been financed heavily by TFC, and is already occupying several TFC lands without any rental payment.

“We are not going to acquire Ceylinco Sussex group immediately, but we may consider acquiring a stake of a newly formed company that would buy Ceylinco Sussex” he said adding that TFC is in a move to recover nearly Rs.2 billion from Ceylinco Sussex group.

While The Finance Company PLC (TFC) had initially invested approximately Rs.1.8 billion in Ceylinco Sussex under the purview of former Ceylinco group, Jayawardena said that the Rs.2 billion that is yet to be recovered from Sussex group is considered an exit strategy from distressed associate subsidiaries of Ceylinco.

“They also have a land worth about Rs.400 million, and we may also consider selling those properties under our supervision to recover our dues” Jayawardena said. While several properties owned by TFC in prominent locations in Colombo were up for sale early this year, Jayawardena also said that company has now decided not to sell the iconic properties. “But there is a five acre land next to Ceylon Tobacco Company in Colombo 15, and we hope to sell it for about Rs.2 billion” he said.

After injecting fresh capital worth Rs.1.6 billion through Secondary Public Offering, The Finance Plc (TFC) is hoping to strengthen its financial market reach through the newly appointed director board.

source - www.dailymiirror.lk