Shares that can give near 100% returns in 2012

I believe investing decision making in CSE is much easy now. We can identify lot of no growth sectors and companies.

But if we can identify the real gems, which can make a real difference and make us win, then this effort is for that.

I would like to share my summary compilation on PARQ. Open for discussion.

http://research.srilankaequity.com/t312-shares-that-can-give-near-100-returns-in-2012#360

What do you think would be the no growth sectors or companies?

RFCs, HPWR, High energy based manufacturers, motor, etc

Thanks Hariesha.

My bets are plantation companies and export lead companies.Plantation sector had to face severe problems last financial year due to they had to settle arrears wages and grativity. Now that is over. Most importantly now reveneu of all plantation companies have gone up due to Rupee deppriciation. Hence I expect performance of the companies in plantation sector would deffinetely enhanced.

Exporting companies too will be benefitted with recent Rupee depriciation. I hope everybody can understand that revenue of such companies in the next Quaters would be higher than that of last Quarters. However the increased revenue and profits are depend on the level of Value addition of the products exporting. Hence Local raw material based pructs will be benefitted fully and less value added products such as garments,electronics products,ship buildings and repairs, chemical based products etc. will also be benefitted depending on their value addition levels.

Thirdly I believe rupee depriciation would help hotel sector to enhance their performance as room rent is fixed in US $ terms. All hotels would be benefitted with recent rupee depriciation.

So best sectors according to my view are;

.......Plantation companies
.......Expoing companies and
.......Hotels

Rajaraam wrote:My bets are plantation companies and export lead companies.Plantation sector had to face severe problems last financial year due to they had to settle arrears wages and grativity. Now that is over. Most importantly now reveneu of all plantation companies have gone up due to Rupee deppriciation. Hence I expect performance of the companies in plantation sector would deffinetely enhanced.

Exporting companies too will be benefitted with recent Rupee depriciation. I hope everybody can understand that revenue of such companies in the next Quaters would be higher than that of last Quarters. However the increased revenue and profits are depend on the level of Value addition of the products exporting. Hence Local raw material based pructs will be benefitted fully and less value added products such as garments,electronics products,ship buildings and repairs, chemical based products etc. will also be benefitted depending on their value addition levels.

Thirdly I believe rupee depriciation would help hotel sector to enhance their performance as room rent is fixed in US $ terms. All hotels would be benefitted with recent rupee depriciation.

So best sectors according to my view are;

.......Plantation companies
.......Expoing companies and
.......Hotels

Totally agree with you, i too have the same opinion.

What would be your picks on those 3 categories?

few of my picks would be
FLCH
TJL
RENU?

ccsentha wrote:few of my picks would be
FLCH
TJL
RENU?

My picks are the same ccsentha.

kam2011 wrote:

ccsentha wrote:few of my picks would be
FLCH
TJL
RENU?

My picks are the same ccsentha.

Actually if there is a mentality shift and a proper bull run, I can see dozens of shares tat can gain over 100%.
Due to promotion issues I will not mention just by name without any details.

ccsentha wrote:few of my picks would be
FLCH
TJL
RENU?

Value of only investment portfolio of RENU is worth more than 200/- (Apart from it's hotel operation). However, unfortunately the share price is Rs 190/-. I feel, RENU is a good at this price.

Monster wrote:

ccsentha wrote:few of my picks would be
FLCH
TJL
RENU?

Value of only investment portfolio of RENU is worth more than 200/- (Apart from it's hotel operation). However, unfortunately the share price is Rs 190/-. I feel, RENU is a good at this price.

Looking at the profits or the value of the assets of some companies is like looking at the well laden coconut trees in the garden which you own a small share. Even when you own some shares in some of these companies, really you own nothing. You will have to watch as the Pereras, Rajaratnams, Renukas bring the bullock cart, pluck the coconuts, fill the carts and take them out of to sell and get the money to their private use. The minority shareholders would get a kollopuwak if they are lucky.

I wonder even 10% return from now upto dec-2012 is attractive. 100% return is a day dream...........

Y every1 missed RHL? I think it contains Motor and export (coconut and value added items). It sounds good as a diversified firm...

Rajaraam wrote:My bets are plantation companies and export lead companies.Plantation sector had to face severe problems last financial year due to they had to settle arrears wages and grativity. Now that is over. Most importantly now reveneu of all plantation companies have gone up due to Rupee deppriciation. Hence I expect performance of the companies in plantation sector would deffinetely enhanced.

Exporting companies too will be benefitted with recent Rupee depriciation. I hope everybody can understand that revenue of such companies in the next Quaters would be higher than that of last Quarters. However the increased revenue and profits are depend on the level of Value addition of the products exporting. Hence Local raw material based pructs will be benefitted fully and less value added products such as garments,electronics products,ship buildings and repairs, chemical based products etc. will also be benefitted depending on their value addition levels.

Thirdly I believe rupee depriciation would help hotel sector to enhance their performance as room rent is fixed in US $ terms. All hotels would be benefitted with recent rupee depriciation.

So best sectors according to my view are;

.......Plantation companies
.......Expoing companies and
.......Hotels

Dont forget the next wage hike as per the collective agreement. That will be the end of the plantation sector.

illuminati wrote:

Rajaraam wrote:My bets are plantation companies and export lead companies.Plantation sector had to face severe problems last financial year due to they had to settle arrears wages and grativity. Now that is over. Most importantly now reveneu of all plantation companies have gone up due to Rupee deppriciation. Hence I expect performance of the companies in plantation sector would deffinetely enhanced.

Exporting companies too will be benefitted with recent Rupee depriciation. I hope everybody can understand that revenue of such companies in the next Quaters would be higher than that of last Quarters. However the increased revenue and profits are depend on the level of Value addition of the products exporting. Hence Local raw material based pructs will be benefitted fully and less value added products such as garments,electronics products,ship buildings and repairs, chemical based products etc. will also be benefitted depending on their value addition levels.

Thirdly I believe rupee depriciation would help hotel sector to enhance their performance as room rent is fixed in US $ terms. All hotels would be benefitted with recent rupee depriciation.

So best sectors according to my view are;

.......Plantation companies
.......Expoing companies and
.......Hotels

Dont forget the next wage hike as per the collective agreement. That will be the end of the plantation sector.

You have a good point illu, What is the timeframe for next wage hike?

Jana1 wrote:Y every1 missed RHL? I think it contains Motor and export (coconut and value added items). It sounds good as a diversified firm...

RHL was the last counter I sold in my PF and 1st to collect. The company has been transferring from an investment fund to a diversified company.
This is the only counter I'm collecting at the moment as a long term investment.
However I'm not expecting good results in Q4 2011( Admin cost would be significant due to acquisition of Richlife and short term investments would n't sound good) & also in Q1 2012 ( Right issue cost & continuous expansion of the company).

I presume any collecting process has to be a very slow moving one.

Jana1 wrote:Y every1 missed RHL? I think it contains Motor and export (coconut and value added items). It sounds good as a diversified firm...

Jana1, I know RHL exports coconut value added items and recently acquired RichLife. But I never knew they are in to motor sector too. Can you explain it more, if you don't mind.

Monster wrote:

Jana1 wrote:Y every1 missed RHL? I think it contains Motor and export (coconut and value added items). It sounds good as a diversified firm...

Jana1, I know RHL exports coconut value added items and recently acquired RichLife. But I never knew they are in to motor sector too. Can you explain it more, if you don't mind.

From the following link
http://www.cse.lk/cmt/upload_report_file/821_1314962406870.pdf

Thanks Sriranga...

Monster wrote:

ccsentha wrote:few of my picks would be
FLCH
TJL
RENU?

Value of only investment portfolio of RENU is worth more than 200/- (Apart from it's hotel operation). However, unfortunately the share price is Rs 190/-. I feel, RENU is a good at this price.

FLCH -Iam not sure about other than its only Rs 1.80per share.EPS is LPS of 0.05.Have taken into account the auditors note with regard to contingent liabilities.

With regard to TJL, I quote from Chairmans Review
Net profit in the third quarter before provision for this exchange loss was Rs 230 million, more than the cumulative net profit of Rs. 222mn recorded for the preceding six months. Cumulative net profit for the nine months, at Rs 452 million before exchange losses, reflected a marginal drop of 2% over the corresponding period of the previous financial year, while cumulative net profit after exchange losses was down 11% YoY to Rs 409 million for the nine months reviewed. Unquote

How will this affect the rupee devaluation this year 15% or so.

Anyone aware how this is worked out.
They have operating lease commitments to the BOI or GOSL,if i am not mistaken they are paid in USD.

I'M BETTING ON CITW AND CITK.Buy in the price range 8-9.You'll be able to enjoy later.