CFVF hidden Gem!!

pererahsc · 1 CFVF hidden Gem!! Sat Mar 12, 2011 9:49 pm

pererahsc

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Any reason for sudden movement in this share. Dividend announcement is on the way or could it be one of the Perera's collecting in bulk quantities.

This is surely one of the undervalued share!!
Could we see a rally for CFVF from Monday onwards....

Open for discussion!!!

Rajitha · 2 Re: CFVF hidden Gem!! Sat Mar 12, 2011 10:20 pm

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Its not a hidden gem but a GEM almost 80% of the trading community knows! The problem with the share is there are always people to dump hundreds of thousands of shares when the share moves even Rs1. This is true to almost all Shafter family shares (exam JINS) and gets traded way bellow its sector PE values!
Most of the time because of its huge earnings it will give huge dividends maybe more than half its share price and then its price will move a bit! But unfortunately that did not happen this time so it seems share price won't budge a lot!

optimistic · 3 Re: CFVF hidden Gem!! Sat Mar 12, 2011 11:10 pm

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Rajitha wrote:Its not a hidden gem but a GEM almost 80% of the trading community knows! The problem with the share is there are always people to dump hundreds of thousands of shares when the share moves even Rs1. This is true to almost all Shafter family shares (exam JINS) and gets traded way bellow its sector PE values!
Most of the time because of its huge earnings it will give huge dividends maybe more than half its share price and then its price will move a bit! But unfortunately that did not happen this time so it seems share price won't budge a lot!

Rajitha, I was planning to enter CFVF and hold it long term. Are these price levels safe to get on board or do you think waiting till the 31st of march would give me a bargain price? will appreciate your reply.

kuk83 · 4 Re: CFVF hidden Gem!! Sat Mar 12, 2011 11:38 pm

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Rajitha wrote:Its not a hidden gem but a GEM almost 80% of the trading community knows! The problem with the share is there are always people to dump hundreds of thousands of shares when the share moves even Rs1. This is true to almost all Shafter family shares (exam JINS) and gets traded way bellow its sector PE values!
Most of the time because of its huge earnings it will give huge dividends maybe more than half its share price and then its price will move a bit! But unfortunately that did not happen this time so it seems share price won't budge a lot!

Whole Shafter family shares now more attractive.Even they ll not declare a dividend i think it is not a problem, becoz they ll reinvest and eventually it ll be more benefit.BTW dont forget CSEC they also have very attractive earning.Even though recent right issue cause to dilute earning each right brought 10LKR to the company.

Rajitha · 5 Re: CFVF hidden Gem!! Sat Mar 12, 2011 11:45 pm

Rajitha

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optimistic wrote:

Rajitha, I was planning to enter CFVF and hold it long term. Are these price levels safe to get on board or do you think waiting till the 31st of march would give me a bargain price? will appreciate your reply.

Well I can't predict the market with a even 90% accurately but IMO it might be better to wait another 2 weeks or so maybe to enter! Just FYI though there won't be any huge credit clearing going on at the end of the month!(All my brokers have 0 credit clearing to do for the end of the month. All the credit they had gets renewed when they sold stuff in past 3-4 months) Only the panic retailers selling there shares expecting it is what will most probably happen!
To tell my situation I had 4000 shares of this and sold 2000 and holding 2000 as its still very attractive even without the dividend. Same thing with JINS btw. Although I sold all my CSEC lots + the shares I got from my rights as needed to clear some credit.

econ · 6 Re: CFVF hidden Gem!! Sun Mar 13, 2011 3:17 pm

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CFVF is undervalued but there are reasons for that.
their profit margins has decreased lot in last year.
so need time to recover.

Slstock · 7 Re: CFVF hidden Gem!! Sun Mar 13, 2011 3:53 pm

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econ wrote:CFVF is undervalued but there are reasons for that.
their profit margins has decreased lot in last year.
so need time to recover.

Econ, agreed on the above fact. But the fact remains the current prices of CFVF is considerably undervalued to sector.
Why should the loss of relative growth justify the current prices is the question. Even if one takes off the other income I guess this share will have Rs3 annulized EPS alteast. So I think it should be worth atleast over rs 30 isn;t it?

Don;t know what shafters are upto. Which of their companies will give a dividend is the mystery.

JINS last year gave 2 dividends . So far none have been given. Many expected CFVF to give something but who knows.