RCL - 31.12.2011

Genting wrote:

chamith wrote:

DP owns nearly 80% or more of VONE. You think he will risk nearly 20billion to make small personal gains ?

If he owns 80%, does he have to worry about share price of VONE?

Would you like when the shares you brought go down?
Simple as that

chamith wrote:
Would you like when the shares you brought go down?
Simple as that

True, he bought RCL, SAMP etc shares. Using those he created VONE shares.
My point is, as long as he is not hoping to exit, he will not worry about the market price. Especially at a time like this.

When things become green and when he want's to sell part of his stake, the share will sky rocket!

illuminati wrote:As you have finally admitted that you are waiting to get out of the mess once the market improves hence I understand your frustration and anxiety whenever someone expresses bearish sentiments.

Dude, did I talk abt me? Ur English writing is good but u have a problem with the reading it seems.. I stand for the crowd @ large who were stuck buying reasonable prices but sighing due to market condition not getting improved.. Since I'm too bearish abt the market movements I dont mind ur being bearish, I only stand against u for dispersing negativity without evidence..

illuminati wrote:
Why do you say the market is not in good shape? As I see it the market is heading in the right direction predicted by a few people in this forum.

If the market is heading in right direction why the hell u always talk abt getting counters lower than now?? If market is to go up, shares prices will also increase know.. I dont understand ur contradictory arguments.. Dont be an agent of any negativity community..
U cant give reasons as to why ur bearish while I give reasons why I'm bearish..This could make u a joker in the forum..

Honestly ur hate is towards the moderators and crowd who talked abt chicken and plantations.. WHY???? may be u've bought and couldn't sell or u missed the bus..
As I said, if anything was said by me or other mods as the way u see it called promotions, or even by other members, those were backed up with the technical or fundamental reasoning than saying "this will go up/down", "you can get this counter low in a month,etc.."
Even at that point u might see its promotional but majority done see it cuz there were points given for the members to read and understand.. But if they have a problem understanding what they read, can we help????

chamith wrote:smallville,

no point of arguing. They will understand one day when experienced enough. If a company continues to grow, then there is nothing to worry about the price that trades.
we can not expect all the construction projects to use RCL's products. But there will be an increment in the demand somewhat. [Thats a reasonable assumption than assuming increasing tourists will eat all BFL's chicken. lol]

True true.. However hard someont tried these ppl never want to understand the point..

As u can see this is the reason why most of the seniors are not posting or replying comemtns these days..

ATTITUDE is EVERYTHING!!!

Let the idiots drive for awhile as we take a break, in a month's time forum will have to be shutdown with the bombarded criticism..

RCL will grow. No question about that. Business will be good. There will be profits on paper. But all the profits will go to the major shareholders. Other investors will get nothing unless they become traders. One of the important things in value investing is good investor friendly management. Otherwise no point in investing. Book profits doesn't mean anything unless they grow your wealth.

How low can we become to say some business tycoon is so great knowing that because he took ownership of a government business virtually for nothing while the rest of the citizens work day and night and take loans in their whole life time to build a house and buy a car in legal means, or because a tycoon pointed guns and threatens the director board and the journalists to take control of the businesses, or because somebody became successful by running a gambling center, or somebody became successful in creating artificial rallies and stealing money from the foolish investors and build hotels.

This is the reason why Sri Lanka is still in this state. If somebody is successful there are lot of people to make up stories and criticize him. Its all about the attitude.

I really dont understand your paper profit concept. If its just paper profit how can that paper profit go to the major shareholder? If its just only 'paper profit'?

Its obvious that major shareholders get the most dividend. Thats why they are called major shareholders who have invested than others. I dont think any company in this would give more dividend to small shareholders because they are small and dont have much money as major shareholders. lol

hasi17 wrote:RCL will grow. No question about that. Business will be good. There will be profits on paper. But all the profits will go to the major shareholders. Other investors will get nothing unless they become traders. One of the important things in value investing is good investor friendly management. Otherwise no point in investing. Book profits doesn't mean anything unless they grow your wealth.

How low can we become to say some business tycoon is so great knowing that because he took ownership of a government business virtually for nothing while the rest of the citizens work day and night and take loans in their whole life time to build a house and buy a car in legal means, or because a tycoon pointed guns and threatens the director board and the journalists to take control of the businesses, or because somebody became successful by running a gambling center, or somebody became successful in creating artificial rallies and stealing money from the foolish investors and build hotels.

Look back and analyse RCL before it acqired by KDDP, then look at 3 years back from now, look at current situation you might see this is not just "Growth". This is "Massive Growth", you might witness it again in another few years time (I might be right or wrong but look at their future expansion plans) There are many sectors related to construction/property development sector other than 5 star hotels which are set to boom probably from 2013. I don't think every one can import tiles from Europe or USA because local tile production is protected by huge import duties where local manufactures enjoy clear benefit, that's the secret behind success of local tile manufactures like LWL/TILE and RCL over the past years.

I believe they thrived very well and got through the difficult period especially during the burst of property bubble in 2007-2009 and by 2012 they have become real mature companies(Both LWL/TILE and RCL) and coming years are just a cake walk.

WildBear wrote:
Look back and analyse RCL before it acqired by KDDP, then look at 3 years back from now, look at current situation you might see this is not just "Growth". This is "Massive Growth", you might witness it again in another few years time (I might be right or wrong but look at their future expansion plans) There are many sectors related to construction/property development sector other than 5 star hotels which are set to boom probably from 2013. I don't think every one can import tiles from Europe or USA because local tile production is protected by huge import duties where local manufactures enjoy clear benefit, that's the secret behind success of local tile manufactures like LWL/TILE and RCL over the past years.

I believe they thrived very well and got through the difficult period especially during the burst of property bubble in 2007-2009 and by 2012 they have become real mature companies(Both LWL/TILE and RCL) and coming years are just a cake walk.

Look back and analyze any company good or complete junk 3 years back, you will see not just growth but massive growth. Their assets went up. Let alone whatever happened with the core business everybody traded stocks like every company was an investment trust. Don't thank the directors of the companies for that performance, thank the President and the defense secretary who finished the war 100%. And also thank the Sri Lankan investors who went on a buying spree with too much flowing and impractical optimism.

Importing tiles are impractical, unless it's a special case like granite from a famous region. So it could be assumed all the tiles are locally manufactured already. But bathware usually are imported because they have brand quality. Always confident about tomorrow, just like bull run from next January and then in January next February and so on.

Growth , massive growth or exponential growth , Casino king will take all the profit to his home by buying his building from profit or investing on some of his 100% owned share @108 when its net assets is @34 (Amana by haycrap)

smallville wrote:

chamith wrote:smallville,

no point of arguing. They will understand one day when experienced enough. If a company continues to grow, then there is nothing to worry about the price that trades.
we can not expect all the construction projects to use RCL's products. But there will be an increment in the demand somewhat. [Thats a reasonable assumption than assuming increasing tourists will eat all BFL's chicken. lol]

True true.. However hard someont tried these ppl never want to understand the point..

As u can see this is the reason why most of the seniors are not posting or replying comemtns these days..

ATTITUDE is EVERYTHING!!!

Let the idiots drive for awhile as we take a break, in a month's time forum will have to be shutdown with the bombarded criticism..

The last para is the most sensible thing I have heard from this forum. There will be no more bogus TA or manipulations and many innocents will be spared at least during this break. If possible try to extend this period for which we will be eternally grateful.

RCL on track with forecasts!

"Royal Ceramics could be high turnover and robust earnings
generating counter which has ample opportunity to further gain
from the booming construction sector in the island. With the
protectionist policies the government has placed on the local tile
sector industries, RCL with its premium quality tiles and sanitary
ware will have effortless penetration power in the local context. In
addition this too will give RCL the momentum to shine in global
ceramic market."

More at:

http://colombostockwatch.com/2011/09/royal-ceramics-lanka-interim-update/

Cheers!

illuminati wrote:
The last para is the most sensible thing I have heard from this forum. There will be no more bogus TA or manipulations and many innocents will be spared at least during this break. If possible try to extend this period for which we will be eternally grateful.

Dude u keep coming back as an angry snake..

U can keep talking abt buying RCL @ 100 and other counters cheap by letting down the forum members.. So GOOD LUCK with your BASELESS BEAR PHASE PROMOTION..

At one point ppl will realize u dont have any base for your predictions and then we can have the last laugh at you..

Well I have no BEEF with you and frankly I have other fish to fry so u can go fly a kite till then

hasi17 wrote:

WildBear wrote:
Look back and analyse RCL before it acqired by KDDP, then look at 3 years back from now, look at current situation you might see this is not just "Growth". This is "Massive Growth", you might witness it again in another few years time (I might be right or wrong but look at their future expansion plans) There are many sectors related to construction/property development sector other than 5 star hotels which are set to boom probably from 2013. I don't think every one can import tiles from Europe or USA because local tile production is protected by huge import duties where local manufactures enjoy clear benefit, that's the secret behind success of local tile manufactures like LWL/TILE and RCL over the past years.

I believe they thrived very well and got through the difficult period especially during the burst of property bubble in 2007-2009 and by 2012 they have become real mature companies(Both LWL/TILE and RCL) and coming years are just a cake walk.

Look back and analyze any company good or complete junk 3 years back, you will see not just growth but massive growth. Their assets went up. Let alone whatever happened with the core business everybody traded stocks like every company was an investment trust. Don't thank the directors of the companies for that performance, thank the President and the defense secretary who finished the war 100%. And also thank the Sri Lankan investors who went on a buying spree with too much flowing and impractical optimism.

Importing tiles are impractical, unless it's a special case like granite from a famous region. So it could be assumed all the tiles are locally manufactured already. But bathware usually are imported because they have brand quality. Always confident about tomorrow, just like bull run from next January and then in January next February and so on.

I do not understand what you are trying to say. But I think you might agree with the following

1.All the companies didn't grow after ending the war Eg. BLUE,TESS,MULL,ACME,Many property stocks,GREG, etc
2.President or Defense secretary can't create demand for tile or bath ware
3.Even if investors went on a buying spree, RCL is still undervalued. with 2012E it will be massively undervalued.
4.There are many tile manufactures but RCL has the dominant market position LWL/TILE being the second
5.When we analyze a stock it would be always prudent to analyze past earnings,current situation including market position of their product, future prospects and future demand for their products, track record of the management etc
6. If you come across with good/better/best stocks apart from RCL you can always share the information with the forum.
7.If the recorded profits are only paper profits they can't buy subsidiaries like paint companies or Diversified companies like HAYL using paper profits, as it need real money.
8. Casino is not illegal in Sri Lanka, and government promoting many gambling giants like Sun City.

I made a comment on the lbo site's RCL post saying their core business of tiles revenue grew only 3% but the moderators have rejected the comment.

http://research.srilankaequity.com/t220-capital-trust-royal-ceramics-rcl-3rd-quarter-financial-update

RCL is a very good company.

Yes good if you're one of the major share holders.

illuminati wrote:

Monster wrote:Company has produced Rs 595 million as net profit during the period, which is around 20% improvement compared to the previous quarter and 45% improvement compared to the same period a year ago. RCL is currently trading just below PE 8. RCL should worth at least 170/- by considering PE ration 10.

Company chairman Mr A.M. Weerasinghe has disposed around 650,000 shares during the period. His stake has dropped from 8.33% to 7.75%.

In a bear market it is not uncommon to see good counters trading below 5 PER. As such RCL may further drop to around 100 or more within this year.

As you predicted, RCL has reached to almost Rs 100/-. Today it's traded at Rs 103/-. Another one or two red days would bring down RCL to Rs 100/-