@ SLSTOCK, my top ten picks in no particular order of importance are as follows :
1. BUKI (Rs. 750) – owns approx 63 % of GoodHope Asia Holdings and 45 % of Carsons. GoodHope Asia is a world class, fully integrated Palm Oil company in the food sector. Buki is trading at under 10 times earnings and 65 % of adjusted NAV. Its palm oil sector business is overseas and will not be affected by Sri-Lankan macro issues. We can expect 30 % CAGR in profits in the future due to their plantation maturity profile and demand / supply fundamentals of Palm Oil pricing. Please also refer previous posts in regard to Buki and their websites www.goodhopeasia.com
2. CINV / GUAR - Trading at approx 60 % their NAV with a strong exposure to BUKI (63 % of their portfolio value), JKH, COMM BANK. Rest of portfolio comprises blue chips such as NEST, CARGILLS, EXPO, DURDANS, ASIRI, TOKYO, PLC, AITKEN SPENSE HOTELS, etc.
more info on thread :http://forum.srilankaequity.com/t17433-exchange-rate-and-palm-oil-prices-impact-cars-buki?highlight=buki
3. CIT/CFI - great exposure to the CFLB Group. Owns approx 25 % of CFLB which in turn owns COLO, EBCREASY, LANKEM , KOTA, ETC. Trading at approx 50 % of their NAV. Pls also refer thread :http://forum.srilankaequity.com/t19060-this-is-what-i-know-about-cflb-what-do-you-know-share?highlight=cflb
4. NDB – trading at 5-6 times trailing earnings.
5. RENUKA CITY HOTELS (RENU) - Trading at approx Rs 200 / share, RENU has Rs 175 Cash, Rs 175 equity portfolio comprising of 1 : 1 DFCC, COMM Bank,NTB & JKH & a Property / Hotel business which is profitable. NAV between Rs 400-450 and share price around Rs. 200. Value proposition is hard to beat.
6. Richard Peiris (RICH) - A diversified conglomerate penny stock (in your own words ?!) with exposure to plantations (NAMU, KGAL), Property, Retail and Manufacturing. Trading under 5 times trailing earnings. Perhaps out of favour due to excess liquidity created by 15 : 1 split last year. Low P/E stocks could give you a decent dividend yield too. Also NAMU has good exposure to Palm Oil and KGAL leader in Rubber.
7. DOCKYARD (DOCK) – Cash rich company with strong balance sheet. Trading at 7-8 times trailing earnings with ship buidling / repair order book full upto 2014/2015. Strong Japanese management ownership and technical knowhow. Well poised to benefit from Sri-Lanka’s port developments / shipping hub / oil discovery future.
8. LMF – A play on DIST ! However way you look at it, LMF owns 12.85 % or approx 38 mill shares in DIST on its own issued shares of 40 Million. So, almost 1 : 1 value on DIST at 35-40 % discount to DIST price. LMF will act as a in the money call option on DIST which is trading at approx 6-7 times trailing earnings. Now, Melstacorp, a 100 % subsidiary of DIST will have to make a mandatory offer to purchase LMF shares. Thus, LMF, which currently owns 12.85 % of MELSTACORP via DIST will be owned by Melstacorp. This cross holding loop will in effect create infinity value to LMF.and lets not forget about LMF Dairy business and Farms, Largest milk powder packing plant is south east asia etc. If you consider look-through earnings through DIST, LMF EPS is over Rs. 20 so trading under 5 times earnings. If you mark to market DIST Shares, LMF trading at 50 % NAV.
9. DIMO – Engineering giant, with valuable TATA (& Merc) Agency. The BATTA is selling like hotcakes. Trading at 2 times trailing earnings & maybe trading at 5 times forward earnings ?
10. PLC – subsidiary of Peoples Bank. Trading at 3-4 times trailing earnings and good dividend yield. Future business will be impacted due to current macro issues but state patronage in their leasing business will cushion them somewhat. Best of peers in the leasing space consisting of LOLC & CFIN.
Some other shares worth looking into for the future are : CFIN, CEYLON COLD STORES, CIC (NV), HEMAS, EXPO, VONE, RHL, ALLI, CT HOLDINGS, DIALOG and HNB (NV).
In the speculative share category, the following shares have many reasons to appreciate in the future : HUNTERS, GREG, ECL, LVEN, BFL, LIOC, MORI (NV).