ALLI 1 for 2 Bonus issue.Price up

Rajaraam · 1 ALLI 1 for 2 Bonus issue.Price up Thu Jul 28, 2011 9:46 am

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Equity Stars : 6043
Reputation : 113
Join date : 2011-07-01

Alliance Finance announced 1 for 2 Bonus issue. Good move. Price up to 1100/-This is one of the best finance companies in SL. EPS is 114/- and they declaired a good dividend too.

Rajitha · 2 Re: ALLI 1 for 2 Bonus issue.Price up Thu Jul 28, 2011 10:02 am

Rajitha

Assistant Vice President - Equity Analytics

Posts : 793
Equity Stars : 6798
Reputation : 57
Join date : 2011-01-27

Well this is a share I highly recommended when this was trading around rs 900 and below few months ago! IT shot and and it is now giving another chance for the people who did not sell back then with great dividend and capitalization of reserve!

DK · 3 Re: ALLI 1 for 2 Bonus issue.Price up Thu Jul 28, 2011 10:17 am

DK

Manager - Equity Analytics

Posts : 166
Equity Stars : 5059
Reputation : 26
Join date : 2011-02-14

Might be a stupid question , but how can they value the new share at 10/= per share when the EPS is 114? Even the navps is 500+ as per last quarter.

Rajaraam · 4 Re: ALLI 1 for 2 Bonus issue.Price up Thu Jul 28, 2011 10:23 am

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Equity Stars : 6043
Reputation : 113
Join date : 2011-07-01

DK, That is the value that they keep records in the book as their original shares. NAV and market values are different.

DK · 5 Re: ALLI 1 for 2 Bonus issue.Price up Thu Jul 28, 2011 10:28 am

DK

Manager - Equity Analytics

Posts : 166
Equity Stars : 5059
Reputation : 26
Join date : 2011-02-14

That's what we used to refer as Par right? But didnt CSE put up a rule (quite a few years back) that you cannot value bonus shares at par? I remember there been somehting like this on DFCC bonus issue as well, have to dig up that thread. Apparently there was a hole in the law as DFCC was incorporated by a parliament act or something.

Rajaraam · 6 Re: ALLI 1 for 2 Bonus issue.Price up Thu Jul 28, 2011 11:27 am

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Equity Stars : 6043
Reputation : 113
Join date : 2011-07-01

DK wrote:That's what we used to refer as Par right? But didnt CSE put up a rule (quite a few years back) that you cannot value bonus shares at par? I remember there been somehting like this on DFCC bonus issue as well, have to dig up that thread. Apparently there was a hole in the law as DFCC was incorporated by a parliament act or something.

Yes, you are correct. But "lankawe neethiwala ona tharam hill thiyenawane ringanna ne.