REEF Warrant 18 continuious buying interest

sapumal · 1 REEF Warrant 18 continuious buying interest Sat Dec 31, 2011 12:11 am

sapumal

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Reef warrant 18 is highly attractive at current price. Look at reef warrant 17. It was traded near 35 at the last day and last traded price was 32.90

Now Reef NAV is about 30 and with current expansion this will go beyond 35 within next quarter
Private placement from Citrus hikkaduwa and listing of Kalpitiya and Waskaduwa (Already over subscribed and profit will be added to Dec reports.)

1. Gain from IPOs = 138Mn
2. Gain from est Hikkaduwa subsidary = 72Mn ( refer the 11 sep 30 company balance sheet : Property, Plant and Equipment
and compare with the subsidiary est (Oct 1st) announcement)
3. Gain from Hikkaduwa if PP is good = 109Mn

Total profits = 320Mn

With the extended period of 9months Reef warrant 18 has more value. This will go above 40 and perhaps with a good rally this can go even beyond 50.

Reef warrant 18 top 20 warrant holders holdings

2011 March 31 : 69.53%
2011 June 30 : 75.63% (+6.1%) - between Rs25.00- 22.70
2011 Sept 30 : 80.48% (+4.9%) - between Rs32.00 - 17.30

Top holders

1.PAN ASIA BANKING CORP/EMAGEWISE (PVT) LTD 10,196,120 (32.41%)
2.SEYLAN BANK PLC/THARANA GANGUL THORADENIYA 4,822,400 (15.33%)
3. PAN ASIA BANKING CORP/MR.A S R SILVA 3,704,252 (11.77%)
4. SEYLAN BANK PLC/ W D N H PERERA 1,134,441 (3.61%)
5 HSBC INTERNATIONAL NOMINEES LTD-SSBT DEUSTCHE BA 793,900 (2.52%)

Good Luck

soileconomy · 2 Re: REEF Warrant 18 continuious buying interest Sat Dec 31, 2011 5:51 am

soileconomy

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What about the conversion prices of theses warrants ?

ct.trader · 3 Re: REEF Warrant 18 continuious buying interest Sat Dec 31, 2011 7:27 am

ct.trader

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Puzzling why people still chase after warrants. Hasn't anyone learnt their lessons after the disasters with SEMB.W0016, GREG.W001 and GREG.W002, SMLL.W0020, CLPL.W0012 , the list goes on and on.

And of course there was REEF.W0017 which brought plenty of losses to warrant holders as well. Subscribers to warrants are losing Rs 20 per share at the moment.

sapumal · 4 Re: REEF Warrant 18 continuious buying interest Sat Dec 31, 2011 3:52 pm

sapumal

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soileconomy wrote:What about the conversion prices of theses warrants ?

W17 - Rs30 - 2011 Oct
W18 - Rs30 - 2012 June
W19 - Rs40 - 2015(?)

But Reef is a medium term/long term investment. If you refer the quarter reports you can find that retailers are exiting from REEF and institutions(LGL, RCL) are consolidating. Also PCH/Rishan has bought 1Mn shares. Go to reef, only if you can having the holding power. It will give you a good return. REEF shows good income streams

These profits are still not added to the financial statements

1. Creating Hikkaduwa and PP + listing 2 subs - 320Mn

2. Selling 20% of the CLND = currently 932Mn. But දිලිත will sold them after reclaiming the land (9 acre) they physically not possessed but legally possessed. If they got a land from UDA(under defense secretary), CLND will got a revaluation gain of 12Bn(@8mn per perch). CLND can be fairly valued @100. Kalpitiya will have a 2.7bn gain.

3. Leasing 50 villas - profit = 937Mn

********* Regular incomes *******
profit from subsidy hotels
management fees of subsidiaries
profit sharing from villas
profit from Citrus Aqua