THE COLOMBO FORT LAND & BUILDING PLC (CFLB.N0000)

KingMaker2020 wrote:This share keeps fluctuating but does not pass above 13..
Sell or hold?

RJ1010 wrote:

KingMaker2020 wrote:This share keeps fluctuating but does not pass above 13..
Sell or hold?

Let the directors finish playing their games. What price did you enter? Assuming you entered at 13..... average if price falls to 10.50... this happened several times over last few weeks. If you can then hold this for 1yr price will be going up towards 17 as per the technicals and fundamentals. You can see this is a comprehensive post put on TEC forum and linked in a post above. Don’t be in a hurry to sell at a loss. I hold 20k shares bought at 13.

cseguide wrote:Why i am saying CFLB is a hidden gem
·         40 billion turnover company
·         They have about 40 subsidiaries belong to CFLB
·         It's land bank in heart of Colombo
·         investment in Quoted  and  non Quoted Companies
 
2019
"High-interest rates, high taxes, subdued demand as a result of low consumer spending, and weak commodity prices have all had an impact on the performance of the Group." Chairman saying in 2019 Annual report.
2020
But in this year.(2020) Interest rate reduced to all time low.
·         interest expenses  will reduce sharply resulting higher profit in this year
·         Vat reduced and consumer spending recovering higher income from all sectors.
 
In 2019
" The steep decline in tea prices witnessed at the Colombo Auction as well as continued weakness in the global
the market for Natural Rubber has seen both the Group’s Plantation companies run at a significant loss."
In 2020
Good Tea and Rubber prices both have a greater impact on their plantation losses to reduce and come to come profitability
 
 
They have about 40 subsidiaries belong to CFLB (page 83 of annual report 2019) Some had greater run recently reflecting their share price to increase due to either reducing their losses or recording healthy profits
I am only  giving few of them here.

Subsidiary	Effective holding by CFLB	2019 march price	2020 oct. 2 price	PRICE CHANGE %
CWM	38%	36	45.00	25%
KOTA	61%	5	8.10	62%
LDEV	47.3%	2.2	5.60	154%
LITE	31%	9	17.10	90%
COLO	65%	50	80.00	60%
YORK	50%	60	110.00	83%
MARA		1.20	2.30	91%
Average growth %				80%

 

	2019 march price	2020 oct. 2 price	PRICE CHANGE %
CFLB	Rs 9.50	Rs 13.90	46

 
Comparing the above figure we can clearly see that the price increase of its subsidiaries are not reflected in CFLB share price. some of its subsidiaries have increased there prices over 80% ( LDEV 154%, LITE 90%). Therefore we can see that CFLB share price has a clear upward revision to come to its fair value. Not only that subsidiaries like COLO are still greatly undervalued compare to their peers like CINV and GUAR.
 
Sunquick Lanka (Private) Limited
C.W. Makie PLC has a 49% interest in Sunquick Lanka (Private) Limited, a joint  venture formed for the purpose of manufacturing, processing, and marketing Co-Ro’s products in the form of concentrates and ready to drink (RTD) products marketed under the’Sunquick’ brand.
 
NAV of CFLB 22.73 (on June 2020). Is a 40 billion turnover company and just trading its shares for 13.90 Rs.  compare to 2-3 billion some companies trading their shares in similar range. In addition to all these, it has a great company to cope with the current agriculture-related businesses. It is LANKEM CEYLON PLC. it has considerable share in agric product segments like agrochemicals and plantations.
Other two strength of this company include its land bank in the heart of Colombo and suburbs and the investment portfolio of quoted and non quoted companies.  page 77- page 99 of Annual report 2019)
some of its well-known brands
KOTAGALA
LANKEM
LAXAPANA
SUNQUICK
AGARAPATHANA
C.W. MACKIE
YORK ARCADE
E.B. CREASY & COMPANY PLC

hiransilva23 wrote:cflb have recorded losses in last quaters.can we expect a positive thing in coming quaters?

judecroos wrote:

hiransilva23 wrote:cflb have recorded losses in last quaters.can we expect a positive thing in coming quaters?

It should be positive because CFLB is a  diversified company.