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SOFTLOGIC HOLDING- The Pathetic IPO and Listed Company

+7
Futurebillionaire
gamaya
sriranga
manula
wiser
traderathome
wallstreetguy
11 posters

Go down  Message [Page 1 of 1]

wallstreetguy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

As I have become more financially literate, we intend to learn new things, knowlege is defenitely power.

I was just going through the financials of the top DIV sectors and SHL seems to be the most pathetic
Im one of the IPO victims, having SHL shares worth 100k at 29. Which worths now on 44k. Still heavily dissapointed.
Im actually not dissapointed from this market crashing down or free fall moments. I would understand and have a peice of mind, since this is correction and it will recover . None of coudnt avoid buying shares and attractive prices and expect this blood bath. But this seems al rite to me. It because we couldnt predict.

But what hurts more is this bloody IPO. It was my last IPO i touched, and sadly I have burnt my fingers, and Im sure many of you have too.
the main reason was because, we were dumb and illiterate, following a blind herd which bought us to this state. It was cleary our fault, I myself gambled on this shit stock. Now having much better expericne and much more and better knowledge, looking at this IPO stabs my heart for not reading the prospectus deeply and just following some mad dogs word.

Till now, this company current ratio is below 1, Debt ratio is high, basically this company at the moment has less assets to back its liabilities, and its still over valued at 12.9


What I request from the new comers and the existing members, before investing in anything, investing in knowledge, invest in studying new things, this is your valuable asset.

I strongly recommend people to attend the CCM course conducted by SEC. Its one of the best things they have done, by trying to educate, and they are pretty much very good at what they do, including teaching. It will be an eye opener to everyone. The main reason for our market to be like this is because 99% of people have money but not financial literate or literate at all. The 1% are the smart people and money who have spent by investing in knowledge.

Back to softlogic, I still wonder what I should be doing, dump the stock, or just hold on to it. Because averaging is not a option for this stock. This is junk for now. nor i dont like losing money! Losing big , no not at all.

I hope SHL and its managemnt come up with a great strategy to cover up its debts and creat a better strong cash flow. The business in outer picture looks prettywith branded companies, hospitals etc, but their balance sheet is a dark hole for me.

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

I think you need to average it to the closest market value and sell off at the immediate instance of BE or little higher of cost.selling at loss will affect your portfolio.you have got nothing to loose. Very Happy

wiser

wiser
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Fundamental approch also sometimes provide incorrect information, leading to costly decisions on investing in shares, when companies with the help of creative or innovative accounting and accounting cosmetics disguise real earnings.

manula


Vice President - Equity Analytics
Vice President - Equity Analytics

wiser wrote:Fundamental approch also sometimes provide incorrect information, leading to costly decisions on investing in shares, when companies with the help of creative or innovative accounting and accounting cosmetics disguise real earnings.

not due to incorrect information... if i am correct they have given free or reduce price shares to some company/investors... in this forum it was discussed and many has advice not to buy from the IPO.

sriranga

sriranga
Co-Admin

What I request from the new comers and the existing members, before investing in anything, investing in knowledge, invest in studying new things, this is your valuable asset.

The main reason for our market to be like this is because 99% of people have money but not financial literate or literate at all. The 1% are the smart people and money who have spent by investing in knowledge.

Fact.
Hope TAH's idea may help to come out from the mess.
Thanks TAH.

http://sharemarket-srilanka.blogspot.co.uk/

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Those days SEC promotional campaign was in full swing urging common people to put money on stock market. And there comes an IPO widely advertised as the platinum conglomerate. And there is the broker hype. many brokers recommend. So lot of common people including pensioners put money on this. I hope this goes well with Mr Pathirage's concsience in his retirement.

Futurebillionaire


Stock Trader

I have to disagree with wallstreetguys assumptions. Upon close inspection of SHL's financials it is easily noticeable that the reason behind the bad debt ratios and the situation of the balance sheet is due to consolidation of the financial statements. If u inspect the financial statements of each company under the group individually you will realise that SHL is actually performing very well. Even the cashflows of each subsidiary is at a safe position. Therefore it is wrong to make such comments based on consolidated results. The high gearing ratio is due to the consolidation of the financial sector. As you all should know, it is normal for a company in the finance sector to have a high gearing ratio. Therefore consolidation causes the overall group's gearing to increase. Frankly I believe this company is pretty undervalued at the moment. But that's just my theory and I don't expect anyone to follow me.

Chamindah


Stock Trader

Hi,
This is my first post. I too have burnt my fingers with this share (20,000 shares). The cardinal mistake. I made was that, at the time of subscribing I I was under the impression that shares allocated under the private placements were locked for a period of 1 year. If knew the real scenario, I would not have applied.

It appears that I have no other options but to hold SHL as a long term investment.
Do you all see any other option?

sirimevan

sirimevan
Manager - Equity Analytics
Manager - Equity Analytics

there private placement value was Rs7.20/-
Im waiting to buy when it comes to 7.50/-
Hope you cuodl recover your cash asap,

upuldi

upuldi
Senior Equity Analytic
Senior Equity Analytic

traderathome wrote:I think you need to average it to the closest market value and sell off at the immediate instance of BE or little higher of cost.selling at loss will affect your portfolio.you have got nothing to loose. Very Happy

never average in a bear market......

wallstreetguy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

i read the financials this quarter. SHL reminded me of FB IPO. It crashed like SOFTLOGIC. But investors took action against FB for misguiding with inflated prices. Well i know its a bit stupid, because its clearly the investors fall for not analysing the prospectus thoroughly, but taking actions also sends a messages to big corporates sending you cant mess around like that!

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

wallstreetguy wrote:i read the financials this quarter. SHL reminded me of FB IPO. It crashed like SOFTLOGIC. But investors took action against FB for misguiding with inflated prices. Well i know its a bit stupid, because its clearly the investors fall for not analysing the prospectus thoroughly, but taking actions also sends a messages to big corporates sending you cant mess around like that!

We are in Wonder of Asia.
% paid no one in the top do not care about these things mate.

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