Magics of MAL

CSE Today · 1 Magics of MAL Wed Jun 29, 2011 9:03 am

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Anyone noticed yesterdays trading of Malwatta Plantations...?
MAL N 7.90
MAL X 8.00
Miracle of Asia....! Very Happy

anurabw · 2 Re: Magics of MAL Wed Jun 29, 2011 10:54 am

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Now Mal.N @ 7.70.

Is it good share to buy MAL?

bettersrilanka · 3 Re: Magics of MAL Wed Jun 29, 2011 11:12 am

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not only yesterday today too.. any idea about this??? bounce

anurabw · 4 Re: Magics of MAL Wed Jun 29, 2011 11:57 am

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According to http://www.bloomberg.com/apps/quote?ticker=MAL:SL

EPS = 1.81
P/E = 3.366

Is this true values?

CSE Today · 5 Re: Magics of MAL Wed Jun 29, 2011 12:01 pm

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bettersrilanka wrote:not only yesterday today too.. any idea about this???

Usually N should be traded higher than X or W... but here @ MAL we see a different pattern which makes me equal to a BAT...!

Gosh for sure CSE will take me to Angoda one day...!

STOCK HUNTER · 6 Re: Magics of MAL Wed Jun 29, 2011 2:12 pm

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Gosh for sure CSE will take me to Angoda one day...!

that is correct

Fresher · 7 Re: Magics of MAL Wed Jun 29, 2011 2:20 pm

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MAL.X is very illiquid compared to N
further the rights issue will give the same proportion from both share types therefore, in a rights issue point of view, it is quite equal in value. but it should not trade at a massive discount overall

aladdin · 8 Re: Magics of MAL Wed Jun 29, 2011 5:09 pm

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hiks.. But see the share QTY traded. Then can just imagine what is going on.. lol. I am yet laughing men. The voting share is less price than the none voting.

mark · 9 Re: Magics of MAL Wed Jun 29, 2011 11:31 pm

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CSE Today wrote:Anyone noticed yesterdays trading of Malwatta Plantations...?
MAL N 7.90
MAL X 8.00
Miracle of Asia....!

prices will be depend on supply and demand,liquidity matters,thats all Cool

CSE Today · 10 Re: Magics of MAL Thu Jun 30, 2011 7:42 am

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mark wrote:

CSE Today wrote:Anyone noticed yesterdays trading of Malwatta Plantations...?
MAL N 7.90
MAL X 8.00
Miracle of Asia....!

prices will be depend on supply and demand,liquidity matters,thats all

Mark , what is the point buying X higher than N when both are entitled for same equelant Dividends...but X not having the priviladge of Voting at any AGM/EGM...and even with 50% of X you cant appoint a single director to the board...! The Greatest of N...is when ever a take over or Merger offer comes then no value for X...So either its liquidity is not a point for upper price mark than N...also how could there be a demand for x than N...which has less privileges...?? scratch

If we are to believe your D & S...Pls explain why SEMB x/HNB x/COMB x are still 50% bellow N (in all cases X is having a good demand than N)

I would like to name this x above N situation as an Abnormal

Fresher · 11 Re: Magics of MAL Thu Jun 30, 2011 9:01 am

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ok so Ill explain again, but im not justifying it trading a few cents above N

COMB & HNB have a high free float of X shares compared to MAL. SEMB has a very high amount of X shares thereby making it very liquid.
Therefore MAL.X is of a very illuquid nature. Look at the order book, there are only a few to be bought or sold.

Take a look at the rights issue. N holders will get both N shares as well as X shares.
X holders too will get the SAME proportion of both N shares and X shares.
when the rights was announced N was trading above X. But why would one have to buy N if the same shares will be given to the X holders at the same price? Therefore in a rights point of view, the demand grew for X compared to N. But like most of the rights issues so far, selling pressure increased for MAL when rights issue was announced. This brought the price closer to one another.
Look how very small quantities are being traded with X. The movement of that with such small quantities wont really reflect the value.
In a market where rights are bought for exorbitant prices, this is much better.

CJ · 12 Re: Magics of MAL Thu Jun 30, 2011 9:59 am

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anurabw wrote:Now Mal.N @ 7.70.

Is it good share to buy MAL?

MAL is a fundamental strong stock.Its current PE ration is about 3.Plantation Sector PE is about 7.MAL is going to leisure Sector.That is why they are issuing right issue.MAL is in down trend now.Still not pick up.RSI is not turn back.Bollinger Band shows the down trend.However it is trading in low volumes.Wage prices hike will have an impact on plantation sector.But considering fact of r increase of price levels and supply short fall in world rubber market will give better results.So wait till the price is turning back and then go long.MAL is good for medium term investment.

CSE Today · 13 Re: Magics of MAL Thu Jun 30, 2011 9:23 pm

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npp wrote:ok so Ill explain again, but im not justifying it trading a few cents above N

COMB & HNB have a high free float of X shares compared to MAL. SEMB has a very high amount of X shares thereby making it very liquid.
Therefore MAL.X is of a very illuquid nature. Look at the order book, there are only a few to be bought or sold.

Take a look at the rights issue. N holders will get both N shares as well as X shares.
X holders too will get the SAME proportion of both N shares and X shares.
when the rights was announced N was trading above X. But why would one have to buy N if the same shares will be given to the X holders at the same price? Therefore in a rights point of view, the demand grew for X compared to N. But like most of the rights issues so far, selling pressure increased for MAL when rights issue was announced. This brought the price closer to one another.
Look how very small quantities are being traded with X. The movement of that with such small quantities wont really reflect the value.
In a market where rights are bought for exorbitant prices, this is much better.

Now can you pls explain today s price movement with your above theory...!

MAL N High 7.90 Colse 7.90
MAL X High 7.80 Close 7.50

Fresher · 14 Re: Magics of MAL Thu Jun 30, 2011 9:30 pm

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CSE Today wrote:
Now can you pls explain today s price movement with your above theory...!

MAL N High 7.90 Colse 7.90
MAL X High 7.80 Close 7.50

explain what? why X closed lower than N?

No. of shares traded - N: 187,200 (91% buying); X: 11,000 (100% selling)

Last edited by npp on Thu Jun 30, 2011 9:31 pm; edited 1 time in total (Reason for editing : compacting post)

mark · 15 Re: Magics of MAL Thu Jun 30, 2011 10:40 pm

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CSE Today wrote:

mark wrote:

CSE Today wrote:Anyone noticed yesterdays trading of Malwatta Plantations...?
MAL N 7.90
MAL X 8.00
Miracle of Asia....!

prices will be depend on supply and demand,liquidity matters,thats all

Mark , what is the point buying X higher than N when both are entitled for same equelant Dividends...but X not having the priviladge of Voting at any AGM/EGM...and even with 50% of X you cant appoint a single director to the board...! The Greatest of N...is when ever a take over or Merger offer comes then no value for X...So either its liquidity is not a point for upper price mark than N...also how could there be a demand for x than N...which has less privileges...??

If we are to believe your D & S...Pls explain why SEMB x/HNB x/COMB x are still 50% bellow N (in all cases X is having a good demand than N)

I would like to name this x above N situation as an Abnormal

do you really think that retailers are worrying about their voting powers?.heheee,no mate,they dont care.......prices will depend on demand and supply,its AL econ ne

aladdin · 16 Re: Magics of MAL Fri Jul 01, 2011 1:13 am

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Yes price depends on the demand and supply. It seems X is at a inelastic situation and the N is at an elastic situation. This explains X and N movement along with its QTY exchanged.