Thilak Out Dhamika In ? ... Meeting was very positive ..

but CARDER ids the best of all ....

I too believe someone who knows the matter will create positive at least to make some active situation

dhanurrox wrote:who has management skills and bussiness knowledge and practical experience is much better than a person who knows nothing and only knows to regulate.

Agreed

dhanurrox wrote:who has management skills and bussiness knowledge and practical experience is much better than a person who knows nothing and only knows to regulate.

Agreed but the appionment should be a benifit for all parties not for a group of people

seek wrote:

dhanurrox wrote:who has management skills and bussiness knowledge and practical experience is much better than a person who knows nothing and only knows to regulate.

Agreed but the appionment should be a benifit for all parties not for a group of people

Present appoint is not benefiting anyone

To Boost the market we need

they should nominate DR. Harsha as new Director

dhanurrox wrote:who has management skills and bussiness knowledge and practical experience is much better than a person who knows nothing and only knows to regulate.

GOOD POINT!

I still don't know why there are people who are approving SEC actions. It's sad. REGULATING does not mean introducing ad hoc rules. REGULATORS should listen to market stakeholders and introduce regulations with adequate time to adjust. Consultation should be there, not arrogance. We had some regulators in the past who said market is overvalued, while promoting the CSE for rural folk.

Let's set a side manipulating talk and regulations on market participants. What's SEC's main responsibility? Ensuring good governance of listed entities, the companies that market participants are interacting with? Simply THE CORPORATE BLUNDERS. Our regulators have completely forgotten their JOB.

dhanurrox wrote:

seek wrote:

dhanurrox wrote:who has management skills and bussiness knowledge and practical experience is much better than a person who knows nothing and only knows to regulate.

Agreed but the appointment should be a benefit for all parties not for a group of people

Present appoint is not benefiting anyone

I too feel Dhamika perera will be plus point for market and better than Thilak in any case ..Thilak is a extremist thinker and for CSE what he thinks is Regulations and as he is a extremist he will go to the extreme of regulations ..this is not good for anything ..

Middle path is the best thing DP will be good choice ....

hariesha wrote:We had some regulators in the past who said market is overvalued, while promoting the CSE for rural folk.

Very good point.Those people are realy responsible for trapping these rural folks.(Please do not tell that anyone does not force them to buy shares.)

sanju351 wrote:

Dileepa wrote:

sanju351 wrote:History repasts ...
Mr.Thilak Karunarathna will step down and pay the way to Mr.Dhamika Perera to go to the hot seat ..

Investigations and insults to TOP GUNS LIKE Mr.Dilith Jayaweera & Nimal Perea to be withdrawn with immediate effect ..

This is disastrous, thinking about getting out of CSE if this is true.

mmm you have to pack thngs and get ready then ..before that tell us what Mr Karaunaraththna has done good to CSE ?

It is pathetic to see how people get blind by money.
I do not know what Mr Karaunaraththna has done.
But remember, regulators are not there to push the market up.
They are there to regulate the market as the name implies.
It is not the regulators job to push up the market for you to take a profit.
I think regulators are doing their job OK.
It is up to the government to take measures to stabilize the economy and improve investors confident.

Do you honestly believe such an engaged person like DJ/NP will do the job of the regulator
without considering personnel benefits. We know what this duo have done in the past.
----------------------------------------------------------------------------------------------------------
In 2000, against the advice of the Monetary Board of the Central Bank
Samurdhi Authority purchased 14.89% shares of Pan Asia Bank at a cost of Rs. 119,625,000/=
buying 8,250,000 shares at a premium of Rs. 2 each when there was no market value for Pan Asia Bank.
At the time bank had incurred loss of Rs. 234,000,000 in the year 2000.
Bribery and Corruption Commission filed allegations to Minister S. B. Dissanayake
of depositing Rs. 200 million belonging to Samurdhi Authority in Pan Asia Bank illegally.
----------------------------------------------------------------------------------------------------------
Quoted below from his own words for your reference:

N Perera wrote:I was instrumental in acquiring a major stake in Pan Asia Bank by Samurdhi. I was very close to Minister S B Dissanayake.
I moved to Pan Asia Bank as a marketing person. I met Dhammika through a mutual friend as he was interested in taking a stake in Pan Asia Bank.

With that kind of "management skills and business knowledge and practical experience", ha ha the market will be sky rocketed
I don't think the President is stupid enough to do this change.
If Mr Karaunaraththna steps down as Mrs Indrani Sugathadasa did,
I'm pretty sure the market will fall down further more.

Dileepa wrote:

sanju351 wrote:

Dileepa wrote:

sanju351 wrote:History repasts ...
Mr.Thilak Karunarathna will step down and pay the way to Mr.Dhamika Perera to go to the hot seat ..

Investigations and insults to TOP GUNS LIKE Mr.Dilith Jayaweera & Nimal Perea to be withdrawn with immediate effect ..

This is disastrous, thinking about getting out of CSE if this is true.

mmm you have to pack thngs and get ready then ..before that tell us what Mr Karaunaraththna has done good to CSE ?

It is pathetic to see how people get blind by money.
I do not know what Mr Karaunaraththna has done.
But remember, regulators are not there to push the market up.
They are there to regulate the market as the name implies.
It is not the regulators job to push up the market for you to take a profit.
I think regulators are doing their job OK.
It is up to the government to take measures to stabilize the economy and improve investors confident.

Do you honestly believe such an engaged person like DJ/NP will do the job of the regulator
without considering personnel benefits. We know what this duo have done in the past.
----------------------------------------------------------------------------------------------------------
In 2000, against the advice of the Monetary Board of the Central Bank
Samurdhi Authority purchased 14.89% shares of Pan Asia Bank at a cost of Rs. 119,625,000/=
buying 8,250,000 shares at a premium of Rs. 2 each when there was no market value for Pan Asia Bank.
At the time bank had incurred loss of Rs. 234,000,000 in the year 2000.
Bribery and Corruption Commission filed allegations to Minister S. B. Dissanayake
of depositing Rs. 200 million belonging to Samurdhi Authority in Pan Asia Bank illegally.
----------------------------------------------------------------------------------------------------------
Quoted below from his own words for your reference:

N Perera wrote:I was instrumental in acquiring a major stake in Pan Asia Bank by Samurdhi. I was very close to Minister S B Dissanayake.
I moved to Pan Asia Bank as a marketing person. I met Dhammika through a mutual friend as he was interested in taking a stake in Pan Asia Bank.

With that kind of "management skills and business knowledge and practical experience", ha ha the market will be sky rocketed
I don't think the President is stupid enough to do this change.
If Mr Karaunaraththna steps down as Mrs Indrani Sugathadasa did,
I'm pretty sure the market will fall down further more.

Thanks Dileepa for your impartial analysis.

sureshot wrote:but CARDER ids the best of all ....

Cader was the worst because of him only last year a few people who pushed up crap shares like LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL got banned from SEC.As a result of CADER all those guys in LOFC top 15 shareholders got in to market with introductions that shot up share prices. Cader had vested interests with them.

IT IS WELL KNOWN THAT PRICE BAND was introduced in August 2010 to help one broker firm that had no minimum capital except a security mortgage of a land to finance its clients risks. Some industry people know that Cader's nephew works there as a stock broker. The place had only four major clients Rishan of PCH, Navara Harsha, Perpetual Capital and LOLC.

Many in the market new Cader had diverse interests and investments made within bond king's associates.

And as a result cader was sent home by giving a sitting job at finance ministry and later cader quit the place.

Thanks Mettasena for some info.


But we should now note that most of the share mentioned in Mettasena list ( LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL) have corrected in value, some by 60-70%, and some trading below Nav and PE of 10.

Also I note some attractive penny stocks in the some list trading on decent valuations and can gain short term profit in a small run.

slstock wrote:Thanks Mettasena for some info.


But we should now note that most of the share mentioned in Mettasena list ( LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL) have corrected in value, some by 60-70%, and some trading below Nav and PE of 10.

Also I note some attractive penny stocks in the some list trading on decent valuations and can gain short term profit in a small run.

No argument on some were over valued...But the Question is How he says these are CRAP...???

RIO wrote:

slstock wrote:Thanks Mettasena for some info.


But we should now note that most of the share mentioned in Mettasena list ( LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL) have corrected in value, some by 60-70%, and some trading below Nav and PE of 10.

Also I note some attractive penny stocks in the some list trading on decent valuations and can gain short term profit in a small run.

No argument on some were over valued...But the Question is How he says these are CRAP...???

I think mettasena's point is proved from following article: I just found this on internet.

Link:
http://test.asiantribune.com/news/2011/07/05/sri-lanka-lolc-gained-over-600-profit-through-selling-lolc-finance-stake-156-private

http://asiantribune.com/news/2011/06/15/sri-lanka-epf-buys-richard-pieris-and-dimo-devasurendra-and-thurston-investments

http://srilankastockpicks.blogspot.com/2011/07/nanda-investments-to-trade-next.html

http://csenewsupdates.blogspot.com/2011/07/nanda-private-investors-happiest-lot-in.html


Sri Lanka: LOLC gained over 600% profit through selling LOLC Finance stake to 156 private Investors

Colombo, 06 July, (Asiantribune.com):
A joined business establishment with Japanese financial giant Orix Corporation, Sri Lanka’s Lanka Orix Leasing Company (LOLC) led by Business figures Rohini Nanayakkara and Ishara Nanayakkara duo had received over 600% capital gain through disposing its 10% stake of Lanka Orix Finance Company (LOFC) to nearly 156 private investors in April to May this year, financials of the company outline.

Accordingly, as per the Introductory Document of Lanka Orix Leasing Company (LOLC) released to Colombo Stock Exchange it states that LOLC subsidiary LOFC that had an initial stated Capital of Rs. 1 billion with 100 million ordinary voting shares that was then increased to 200 million shares on 11 October 2010 by issuing another 100 million shares to LOLC at Rs.10 per share from a rights issue had then subdivided company’s existing share for 14 shares on 5 April 2011 increasing share capital to 2.8 billion voting shares.

Company had then sold 10% or nearly 280 million ordinary voting shares to nearly 156 private investors at Rs.5 per share on 28 April 2011 and on 26 May 2011.

“This shows that LOLC’s initial investment is now nearly 71 cents per share in the rights issue that was concluded in October last year and LOLC has gained over Rs.4.28 per share or 600% capital gain from selling 10% stake to private investors” a top capital market analyst said.

He went on to say that as the ‘Introductory Price’ of Lanka Orix Finance Company (LOLC) is not yet been indicated and the private investors will further gain more capital at the expense of poor retailers at Colombo Bourse in the event of share prices soar by a higher percentage.

“Recently all companies that came to Colombo trading floor by Introductory Method shot up over 49% on the first day of trading perhaps even without getting caught to regulators price band that was introduced to discipline Sri Lanka’s capital market” he said.

According to filling by Colombo Stock Exchange, yet to be listed in the ‘Diri Savi’ Board of Colombo Bourse via an Introduction, Lanka Orix Finance (LOFC) will be the company with the highest number of issued share capital in the Banking and Finance sector surpassing 826.49 million issued voting share capital of SMB Leasing PLC (SEMB), and will be the second largest listed company with a higher number of issued share capital after Dialog (DIAL) which has nearly 8 billion voting shares in issue.

While the Introductory or the Reference price of the LOFC share is yet to be informed to the Colombo Bourse when it start trading on 7 July, market sources say that the parent entity of the company LOLC had raised nearly Rs.1.4 billion through a private sell down of 280 million shares or a 10% stake to 156 investors gaining over Rs.1.2 billion or a little over 614% against LOLC’s initial investment in the company just after six months time.

“Any investor can clearly understand that when LOLC sells only a 10% stake or 280 million shares at Rs.5 per share LOLC has already collected its initial investment of Rs.1 billion for subscribing 50% of LOFC’s rights in October 2010 added with 20% interest gain totaling to Rs.1.2 billion after six months in May 2011” another stock market analyst said.

However it is anticipated LOFC will start trading at Rs.5 per share on the ‘Introductory Day’.

The Introductory Document of the company outlines that LOFC on 11 October 2010 allotted a further 100,000,000 Voting Ordinary Shares at a price of Rs. 10/- per share to Lanka ORIX Leasing Company PLC by way of a Rights Issue, thereby resulting in an increase in the Stated Capital to Rs. 2 billion and increasing share capital of the company to 200 million. The it further says that LOFC on 5h April 2011 subdivided 1 existing issued and fully paid Voting Ordinary Share into 14 Voting Ordinary Shares, resulting in the existing 200 million issued and fully paid Voting Ordinary Shares of the Company being increased to 2.8 billion voting ordinary shares without affecting any increase to the Stated Capital of the Company.

It further says while the private sell down of 10% stake had taken at Rs.5 per share, as at the date of the Introductory Document, the Stated Capital of the Company is Sri Lankan still Rs.2 billion divided into 2.8 billion fully paid Voting Ordinary Shares which denotes that each share is still valued at nearly 71 cents.

Lanka ORIX Finance Company Limited (LOFC) formerly known as LOLC Finance Company Limited was incorporated in December 2001 as a wholly owned subsidiary of Lanka ORIX Leasing Company PLC (LOLC). After the commencement of commercial operations on 05 June 2003; and in order to maintain a clear distinction in the eyes of the public and customers between the name of the company (LOLC Finance Company Limited) and the abbreviated name of the Holding Company (LOLC) the Company’s name was changed on 11 July 2003 to Lanka ORIX Finance Company Limited (LOFC). As at January 2011 the Company operated through a network of 53 outlets, segregated into two broad categories namely Branches and Savings Centers. The Company has 43 fully fledged branches strategically located in commercial hubs throughout the Island nation. Sri Lanka has a total of 36 Registered Finance Companies (RFC) and 21 Specialized Leasing Companies (SLC) concentrating in the Small & Medium Enterprise (SME) and Micro Sectors in the economy operating through a network of 534 branches and 317 other outlets.

The total assets of RFCs & SLCs amount to Rs.350 billion as at 30 September 2010. LOFC accounted for 7% of the assets of RFCs as at 31 March 2010 according to the introductory document. Total lending by RFCs & SLCs amounted to Rs 240 billion as at 30 September 2010 with public deposits of RFCs reaching Rs.137 billion, 9% of which was at LOFC as per financials.

Industry sources say that LOFC has a public deposit base of nearly Rs.20 billion to date whilst the financials of LOLC group for 2010 notes that group’s public deposits under management were at Rs.11.76 billion as at 30 June 2010.

Meanwhile Colombo Bourse’s market sources, analysts and several international and local investors have raised concerns over the Kattar Aloysius’ family led Free Lanka Group, Ishara Nanayakkara led LOLC Group, and Sri Lanka’s ‘King of Bonds’ Ajith Devasurendra led Taprobane and Browns Group which are both Chaired by Rohini Nanayakkara has been listing many of the same groups’ inter companies, subsidiaries just after completing a private sell-down of shares in less than a year.

Since Sri Lanka’s capital market watchdog got a new official, Malik Cader as the Director General of the Securities and Exchange Commission with effect from 2 November 2010, Sri Lanka’s Rohini Nanayakkara led subsidiaries and associates including Hydro Power Free Lanka (HPFL), Free Lanka Capital Holdings (FLCH), has already been listed whilst Brown Investments, Lanka Orix Finance, Agstar Fertilizers, Sierra Constructions is yet to be listed in ColombBourse after an IPO or through ‘Introduction’ after a Private Placement.

LOLC,Browns,Taprobane and Perpetual Capital led Kattar Aloysius’ grandson Arjun Aloysius fame had also been bullish in Sri Lanka’s capital market since the regulator put a 10% price band to control high rise Sri Lankan stocks whilst Sri Lanka’s Central Bank’s Monetary Board managed country’s largest pension fund Employees Provident Fund (EPF) that is under the purview of Central Bank Governor Ajith Nivard Cabraal, had been actively following several major quantity buyouts of listed companies by Arjun Aloysius led Perpetual Capital and Browns fame since early this year that came in to light after EPF bought major stakes of Laugfs Gas (LGL) and Grain Elevators (GRAN). EPF recently bought stakes in Richard Pieris from Ajith Devasurendra while on 1 July island nation’s savings giant National Savings Bank (NSB) bought 1% stake of Browns (BRWN) from Harsha N. De Silva and related parties. Recently the first apparel to trade in Colombo Bourse in 2011 Orient Garments (OGL) was also listed by way of an introduction in which Harsha N. De Silva is the fourth largest shareholder with a 4.05% stake. And on the first day OGL share prices which had an introduction price of Rs.23 shot up to Rs.40 and the major shareholders dumped a considerable stake to other retailers and other high net worth investors according to market data.

At a time when Sri Lanka’s tourism is booming, in another development Sri Lankan stock market investors had been surprised by a new Hotel Development project coming up in tourism booming Pasikudah beach valued at an investment of nearly Rs.220 million or US $ 2 million that is yet to be constructed which is called to be a project owned by a top regulator of Sri Lanka’s capital market watchdog. “It is said this Leisure project coming up at Pasikudah is owned by a capital market watchdog official while some say it is owned by a top architect in the country who is related to regulatory official” a stock market analyst said.

On the contrary Securities and Exchange Commission Director General Malik Cader in lately published annual report stresses that in July 2010, prices of Colombo’s certain stocks began to rise considerably - not owing to fundamental factors but almost due to sheer speculation and ‘overheating’ in the market.

Subsequently Malik Cader says in his annual review that such price volatility that existed the market in July 2010 necessitated regulator to impose a 10%, up or down price band on all listed securities.

The move came after imposing a trading halts in respect of securities of Listed Companies including Environmental Resources Investments (ERI) warrants (GREG), Dankotuwa Porcelain (DPL), Blue Diamonds (BLUE) and Touchwood Investments (TOUCH) that showed an undue price increase which was over 30% or further above during the market days of 29 and 30 July 2010 and 2 August 2010, provided the trade volume was more than 1000.

Later market watch dog lifted the price band on all listed securities and the imposition of the 10% price band to listed securities falling within a special formula (based on price volatility and the volume traded adjusted to public holding) on a daily rollover basis for the preceding review period of 5 market days and for connected matters subject to certain specified exceptions.

However since then several stocks including some illiquid shares that hardly attract retailers and parcel buyers were the highest gainers during the many days including Kalamazoo Systems (KZOO), J.L. Morison Sons & Jones (Ceylon) PLC (MORI), Hunters & Company Limited (HUNT), Ceylon breweries PLC (BREW), HDFC Bank, Central Finance (CFIN), Miramar Beach (MIRA), Nation Lanka (CSF), and Alufab PLC (ALUF) with registered finance companies that were listed by ‘Introduction’ including Multi Finance (MFL), Chilaw Finance (CFL), Bimputh Lanka Investments (BLI) and Swarnamahal Financial Services (SFS) had shot up over in the range of 11.5% to over 48% without getting caught to regulators 10% price band according to market data.

Sri Lankan regulator has also directed to mandate all stock broking companies to obtain not less than 50% of the settlement value upfront in the form of realized funds from all investors who purchased securities which were subject to the price band mentioned above.

Annual report also note that during the year 2010 Sri Lanka’s regulator had cautioned a stock broking company with regard to a complaint made by a client in respect of the manner in which trades have been carried out in the client’s account whilst another stock broking company was directed to obtain clearance from a client in respect of a letter of demand issued by the client for approximately Rs. 89 million.

“The licence was renewed only after we received documentary evidence confirming that the client had released the stockbroker from all liability in respect of the letter of demand.” The annual review of the regulator outlines.

While Malik Cader in his annual review outlines that prior to imposing the price band from January 1 to August 4 (2010), the All Share Price Index (ASPI) grew by 54% and the daily average turnover stood at Rs. 2.0 billion, current market capitalization of Colombo Bourse has dipped to Rs.2,355.5 billion and year to date performance is 3.1% after almost reaching 7 months in 2011.

However towards the end of year 2010 despite the price band, the ASPI grew at an encouraging 96% and the daily average turnover was Rs.2.9 billion.

Meanwhile Malik Cader in his annual review that the regulatory measures taken in a timely manner reflected the vigilance and effective monitoring and thereby helped to enhance the level of investor confidence whilst adding further liquidity to the market.

- Asian Tribune -

Lanka Orix Finance to start trading from today

Lanka Orix Finance (LOFC) will commence trading today with a reference price of Rs.5 per share via an ‘Intorduction’ at Sri Lanka’s capital market in Colombo.

The Introductory Document of Lanka Orix Finance released to Stock Exchange point out that, LOLC subsidiary LOFC that had an initial stated Capital of Rs. 1 billion with 100 million ordinary voting shares was increased to 200 million shares on 11 October 2010, issuing another 100 million shares to LOLC at Rs.10 per share from a rights issue.


According to the document of LOFC it says being the fifteenth largest shareholder of the company, Attorney General Mohan Peiris has invested nearly Rs.5 million in 1 million shares of LOFC on 26 May 2011, whilst his wife Priyanthi Peiris being the 16 largest shareholder of the company, had further invested a sum of Rs.5 million in 1 million shares of LOFC on 26 May.

Among the other top 15 private investors India Focus Cardinal Fund with 100 million shares (3.57%), Saakya Capital (Pvt) Limited with 65.552 million shares (2.14%), Infinity Capital (Pvt) Limited with 60 million shares (2.14%) and Rurev Capital Private Limited with 5 million shares (0.17%).

The top individual investors of LOFC includes Arjun Aloyius with 3 million shares (0.17%), Shanker Somasundaram with 3 million shares (0.17%), Dinal Wijemanne with 3 million shares (0.17%), Kamantha Amarasekara with 2 million shares (0.07%), Dr.Rohitha De Silva with 2 million shares (0.07%), Dirk Flamer-Caldera with 2 million shares (0.07%), Aritha Wikramanayake with 2 million shares (0.07%), Romesh Atapattu, Dr.Maiya Gunasekera, Sudath Lansakkara each having 1 million shares (0.03%).

Later, it had subdivided existing shares (each share to 14 shares) on 5 April 2011, increasing the share capital to 2.8 billion voting shares. There after LOFC had then sold 10% or nearly 280 million ordinary voting shares to around 156 private investors at Rs.5 per share between 28 April 2011 to 26 May 2011.

It is highlighted by several Sri Lankan capital market analysts that introductory Document further indicate that LOLC’s initial investment in Lanka Orix Finance is now valued at nearly 71 cents per share in the rights issue that was concluded in October last year, and LOLC has gained over Rs.4.28 per share or 600% capital gain from selling 10% stake to private investors.

- Asian Tribune -

Sri Lanka EPF buys Richard Pieris and DIMO from Devasurendra and Thurston Investments

Colombo, 15 June, (Asiantribune.com):
Sri Lanka’s Central Bank’s Monetary Board run Employees Provident Fund (EPF) bought a large parcel of one of country’s highly valued stocks listed in Colombo Bourse. Accordingly, EPF bought 520,966 shares of Diesel and Motor Engineering Company PLC (DIMO) at a price of Rs.1,416 per share, and further 23,029 million shares of country’s household popular name Arpico owned Richard Pieris & Company PLC (RICH) in two crossings.

According to market sources from the capital market in Sri Lanka, King of Bonds and Taprobane Holdings Chairman Ajith Devasurendra had sold his Richard Pieris & Company PLC stake to Sri Lanka’s pension fund EPF, whilst Perpetual Capital’s Arjun Aloysius’ Grandfather Kattar Aloysius owned Thurston Investments had sold their stake in DIMO to EPF.

As at 31 March 2011, Employees Provident Fund (EPF) was the third largest shareholder of DIMO having a 10.33% stake with 899,100 shares, whilst EPF also had 99.18 million shares of Richard Pieris (RICH)

Since January this year, Sri Lanka’s largest Social Security fund EPF managed by Monetary Board of Central Bank under the guidance of Central Bank Governor Ajith Nivard Cabraal had been buying several stakes of listed companies in the island nation held by either Arjun Aloysius led Perpetual Capital or stakes held by Ajith Devasurendra according to market sources.

It was also evident in May 2011 that Employees provident Fund (EPF) and the Laugfs Gas (LGL) have emerged among top seven shareholders of Ceylon Grain Elevators (GRAN), replacing Perpetual Capital Ltd and Perpetual Asset Management Ltd, in the latest quarterly financials of the company. Subsequently as per financials, several shareholders such as Aviva NDB Insurance, Symphony Capital and Ajith Devasurendra had disappeared from the top 20 shareholders list of GRAN whilst back in 11 February 2011 it was reported that Perpetual Capital, an investment fund, has bought 10.3% stake in Grain Elevators belonging to Singapore’s Prima Group on February 10, a move that reflected bullishness in the food and beverage sector of the country.

On the contrary EPF has stepped up buying further into Sri Lanka’s premier blue chip John Keells Holdings (JKH) at recent times by picking up a bulk of the 2.36 million shares of JKH which traded for Rs. 656 million whilst on March this year after collecting over one million JKH shares. EPF also bought 1 million Royal Ceramics shares for Rs. 150 million on the Mid March. On April this year with a bullish outlook in equity investments, the Employees Provident Fund (EPF) picked up 1 million shares of Aitken Spence (SPEN) for Rs. 165.5 million whilst the seller was Carson Cumberbatch Group (CARS).

Sri Lanka’s largest social security fund EPF that has working population’s savings exceeding Rs.900 billion had been aggressively investing in Sri Lanka’s capital market since May last year when it began investing in Colombo’s five start hotel Galadari becoming the largest institutional shareholder of the company. Thereafter EPF had been actively buying large stakes in premier licensed commercial bank’s of the island nation and EPF is the sixth largest shareholder in Seylan Bank PLC (SEYB) having 5.16%, seventh largest shareholder of DFCC Bank having 4.76%, second largest shareholder of Sampath Bank (SAMP) having 8.25% and second largest shareholder of HNB having over 7% and has over 9% of Commercial Bank of Ceylon (COMB).

- Asian Tribune -

Nanda Investments to trade next Wednesday

Another registered finance company, Nanda Investments and Finance Ltd (NIFL) will be permitted to start trading on stock exchange from next Wednesday.

In a filing Colombo Stock Exchange (CSE) said that the assigned security code is NIFL and 100,716,730 voting shares of the company will be listed as an Introduction, and will commence trading from 20 July 2011.

The financials outline that in December 2010, NIFL had issued 6,070,500 ordinary voting shares to raise Rs. 80,344,750 by means of a private placement targeting both the existing shareholders and potential new investors. With the new share issue, the stated share capital of NIFL has reached Rs. 125,857,930 from Rs.45,513,180.

According to NIFL’s introductory document released to CSE, during the period 20 November 2009 to 27 December 2010, the company has completed 6 private placements prior to a share split. In the last private placement, the company had offered 3,049,000 shares at Rs.10 per share to Chairman Anuras Mallawarachchi and related parties whilst another 3,021,500 million shares had been offered to Dinal Wijemanne at Rs.16.50 per share.

The Company had then sub-divided one existing issued and fully paid ordinary voting share into 10 ordinary voting shares on March 31, 2011, resulting in the existing 10,071,673 issued and fully paid ordinary voting shares of the Company being increased to 100,716,730 ordinary voting shares without affecting the Stated Capital of the Company. Subsequently, as per share capital, the value of a share now stands at Rs.1.25 whilst the reference price for introduction of NIFL’s share is yet to be announced to CSE.

After the subdivision, the largest shareholders of Nanda Investment are Dinal Wijemanne with a 30% stake (with 30.215 million shares), Chairman of NIFL, L. A. Mallawarachchi with a 16.9% stake (17 million shares) and Nanda Motors (Pvt) Limited with a 14.6% stake (14.75 million shares).

As at 28 February 201, the1 Company’s interest income is Rs.43 million and net profit Rs.17.39 million. Company’s Earnings Per Share (EPS) is valued at 37 cents and Net Asset Per Share is valued at Rs.4.53. The Company has a public deposits portfolio worth Rs.35.5 million as at 28 February 2011.

source - www.dailymirror.lk

Nanda private investors, happiest lot in the bourse
Posted in | at 8:50 AM


The private placement parties of Nanda Investments & Finance Limited (NIFL) emerged the happiest in a lackluster Colombo bourse yesterday, as the share price of the newly listed company went through the roof, appreciating over 1500 percent.

On the opening day (July 20), the market saw a meteoric rise of the NIFL share to the Rs.18 levels, though only 100 shares were traded. But yesterday, the share rocketed further up to Rs.27.90 and 825, while 100 shares changed hands.

NIFL was first formed over 50 years ago as a family owned company by Sirisena Mallawarachchi, who was popularly known as ‘Nanda Mudalali, who was also the owner of Nanda Motors. Presently his son Lalith Mallawarachchi functions as the Executive Chairman of the firm.

Before becoming a public company by way of a share Introduction as per regulatory requirement, NIFL had given away its shares to parties to raise regulatory Minimum Core Capital for the company.

The shares were issued to the members of the Mallawarchchi family who function as directors of the company as well as to outside parties at values ‘fair and reasonable to the company and to all existing shareholders of it’, as per the ‘Introductory’ document published with the Colombo Stock Exchange.

The Rs.80 million worth of NIFL share was offered to the company’s directors and private parties at Rs.10 and Rs.16.50 respectively. Then, the share was split on 1:10 ratio making effective cost of shares Rs.1 and Rs.2.

As per the ‘Introductory document’, the single largest shareholder of the NIFL is Taprobane Securities CEO Dinal Wijemanne, who bought his shares during the private placement deal at Rs.16.50 in December 2010.

The second leading shareholder is Lalith Mallawarachchi who holds 16.9% or 17 million shares.

Although sellers of the shares were not immediately known, it was more than obvious that those who bought the share at Rs.1 and 2 at private placements were selling, making a killing.

As at February 2011, NIFL’s ‘s book value per share was Rs 4.50 with a fully diluted annualised EPS of 19 cents for FY11E.

source - www.dailymirror.lk

StockGuru wrote:

RIO wrote:

slstock wrote:Thanks Mettasena for some info.


But we should now note that most of the share mentioned in Mettasena list ( LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL) have corrected in value, some by 60-70%, and some trading below Nav and PE of 10.

Also I note some attractive penny stocks in the some list trading on decent valuations and can gain short term profit in a small run.

No argument on some were over valued...But the Question is How he says these are CRAP...???

I think mettasena's point is proved from following article: I just found this on internet.
source - www.dailymirror.lk

StockGuru....Thanks for your attempt to provide some info to prove Mettasenas statement...But Unfortunately none of those Links or Articles have any info to prove that LOLC, HDFC, CFIN & BRWN are CRAP....!

Mr. Mettasena...I'm waiting for your reply with facts to Prove the above Companies are CRAP....

RIO wrote:

StockGuru wrote:

RIO wrote:

slstock wrote:Thanks Mettasena for some info.


But we should now note that most of the share mentioned in Mettasena list ( LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL) have corrected in value, some by 60-70%, and some trading below Nav and PE of 10.

Also I note some attractive penny stocks in the some list trading on decent valuations and can gain short term profit in a small run.

No argument on some were over valued...But the Question is How he says these are CRAP...???

I think mettasena's point is proved from following article: I just found this on internet.
source - www.dailymirror.lk

StockGuru....Thanks for your attempt to provide some info to prove Mettasenas statement...But Unfortunately none of those Links or Articles have any info to prove that LOLC, HDFC, CFIN & BRWN are CRAP....!

Mr. Mettasena...I'm waiting for your reply with facts to Prove the above Companies are CRAP....

Rio Read them carefully it tells how people in BRWN,HDFC,PCH,PCP,IDL,LOLC,LOFC, Director Boards did some deals while if you go through market data history maybe at stocksyn and reading market reports these articles will prove how those shares shot up and suddenly came down and monitor the quarter reports some of these companies were holding internal shares and sold at a premium and then came down again owners changed and dumped.

Rio you seems very small in analysis to understand just like the the bird rio in movie... learn more...just a small eye opener..'crap' means sometimes they shot up for reasons that only a few people wanted show they are highly valued and later they came down. I believe that is what mettasena wud have also meant. IF SEC monitor the people who sold and bought LOFC at 22.5,18 nanda finance at 18 and Brown at 345 and LGL 53.5 and 68.5 and IDL from 13 to 199 it shows a small cartel who did it and they dumped shares to some small investors. but what happened they got stuck after TFC deal was exposed and canceled by chief executive of the country.

last year SEC held a inside trading seminar with two major investors but one top lawyer who was a former SEC member talked about 'Pump and Dump' everybody thought he was refering to a advertiser turned investor pumping and dumping shares. But the real truth was that top lawyer wickramanayke was refering to this cartel of LOLC related people.

However now after getting stuck in the midst of game deals i heard that LOLC is trying to reposition their ownership and brand whilst the top wheeler dealer is trying to exit from his stock market investments by selling them to LOLC.

And this 'Wheeler Dealer' seems to have recently disposed his stake at diriya investments for a Rs.660 million and remaining Rs.660 million he will receive a year later in 2013. And some people told me that 'Wheeler Dealer' is trying to escape from Sri Lanka and trying to establish him in other country.

I saw it in a website too...

By the way some people however thinks 'Wheeler Dealer' is trying to go back to invest in bonds but the truth is he is trying to go out from Sri Lanka.

Rio i can explain you a job to understand how these things happened and to light your thoughts how these shares became 'Crap' as a result of 'Crap things did by Crap People'..the ideal job wud have been to work as a vacuum cleaner or a floor sweeper or lunch packet delivery assistant at 8, Gothami Road building...then you wud have realized how inside trading happened in August 2010 to 2011 and you have listened to some good stories that how people thought HDFC wud go up to Rs.5000 and LGL will go up to Rs.75 and OGL wud go up to Rs.28 and how a middle east joint venture broking firm head executed a 500,000 buy order at Rs.21.50 per share under his personal account just hours before Orient Garments transaction was concluded on Monday, 1 August 2011.and how central finance went up to Rs.1400 and how free lanka capital reached Rs.5 and LOFC went up to Rs.22.5...and may be how the new chairman of seylan bank a person who was called to london courts for oil hedging an attorney became a banker without banking qualifications.

StockGuru wrote:Rio i can explain ...........

Stock Guru, I feel sorry for you... trying hard to safeguard Mettasena and wonder why he...Mettasena is not replying & you do it for him...!
Guru...read carefully...
"only last year a few people who pushed up crap shares like LOFC,LOLC,HPFL,TFC,HDFC,BHR,SINS,SING,CFIN,BRWN,LGL,NIFL got banned from SEC."

The highlighted : what he is saying is "Pushed Up CRAP" ...so there ..those shares were CRAP before the push up...!

Then again, coz of a Director or a stake holder sell at high or low...how a Company stock becomes CRAP....?
[example...if you sell your stocks at a much higher price through a crossing should all of us consider that particular company is CRAP...?]

Then here...if a holding company Pump & Dump its subsidiaries...then how the Holding Company becomes CRAP..
[ the sub could be a crap & not worth that price..but from what you call Pump & Dump ..has the Holding company occurred any Losses to its assets or Accounts/Profits...etc etc..?]

Brother I'm not referring to subs or Pump & dumped stocks...I'm referring only to LOLC, BRWN, CFIN, HDFC...[Mettasena has mentioned those ]
01. when did the CFIN Directors disposed their CFIN stocks.. [during 2010 ]pls give the prices & Qunt & the Names of the Directors ?
02. when did the LOLC Directors disposed their LOLC stocks.. [during 2010 ]pls give the prices & Qunt & the Names of the Directors ?
03. when did the HDFC Directors disposed their HDFC stocks.. [during 2010 ]pls give the prices & Qunt & the Names of the Directors ?
04. when did the BRWN Directors disposed their BRWN stocks.. [during 2010 ]pls give the prices & Qunt & the Names of the Directors ?

has any of those above mentioned companies occurred Losses during 2009/2010/2011......?

StockGuru wrote:the ideal job wud have been to work as a vacuum cleaner or a floor sweeper or lunch packet delivery assistant at 8, Gothami Road building...then you wud have realized how inside trading happened in August 2010 to 2011 and you have listened to some good stories that how people thought HDFC wud go up to Rs.5000 and LGL will go up to Rs.75 and OGL wud go up to Rs.28 and how a middle east joint venture broking firm head executed a 500,000 buy order at Rs.21.50 per share under his personal account just hours before Orient Garments transaction was concluded this Monday, 1 August.and how central finance went up to Rs.1400 and how free lanka capital reached Rs.5 and LOFC went up to Rs.22.5...and may be how the new chairman of seylan bank a person who was called to london courts for oil hedging an attorney became a banker without banking qualifications.

So u mean u've been there doing all these jobs just to get to know these.. Joking mate

I'm not trying to argue.. But CFIN, HDFC, BRWN are out of the scope of CRAP in my books.. They might've gone a bit over but have been corrected now.. And they were low priced before pushing up bit again pushin up a share of a company that has command a good business is worthwhile other than pushing up shares like BLUE, GREG, RGEM, PCP, PCH which has an uncertain business in today's world. The companies mettasena mentioned as "CRAP" however conduct their business properly..

In every company insider dealing can happen.. Why? cuz SEC doesn't impose bans on dealing securities of their own companies for company directors unlike in other developed markets
There are stories of aunties and their boy friends who are responsible for share price movements know?

Say, if I'm a director of the company and the person "X" wants to buy my shares at a premium, what's wrong in I capitalize on the deal? Just becuz I sell my shares, will my company be CRAP???
I may have striked a controversial deal, but it doesn't mean the company is crap.
What crap is; selling a stake for a gain in a company already labeled "CRAP" like what had happen in PCH when Rishan sold a stake to NP Those are crappy deals..

smallville.....


Both gone missing...nah...!

BRWN ever since cooray family sold their stake to deva and LOLC all underinvoiced shipments, custom payments evaded, risky accounting that's why Rajan Asirwatham quit. Free lanka amibilitiya maturata galoya treescam .HDFC Chairman governor's sister who was before in dud lankaputhra Development Bank two people got in to the boards from LOLC and perpetual since they cudn't sell at 5000 per share. Aloysius's grandson got stuck with what his grandfather gave to play in the stock market in 2011.BRWN,LOLC,HDFC have build brands so people are miscarried by branding have a 360 degree analysis.

For me they were fundamentally strong but later came crap..

Don't know what mettasena exactly said.

Stockguru,

Appreciate the insights you provide.. however, there's something missing in your clarification.. We need evidence to clearly evaluate the aforesaid mate otherwise its like gossip..
so all these companiy heads have done ontroversial deals? eh?

I checked LOLC financials;

Cash and cash equivalents - 4.4 Bil
Security investments - 13.9 Bil
Rentals Receivable - 40.1 Bil
Advances & other Loans - 39.94 Bil

Interest bearing loans and borrowings 6 2 . 4 Bil in 2012 as compared to 46.78 Bil last year.
This is due to extensive acquisitions, but how to recover these?
Even Retained earnings are at 16.7 Bil.
They get other income by sale of 10% of subsidiaries, Lanka Orix Finance and Commercial Leasing & Finance Co, amounting to Rs.3.8bn and 4.1bn

But look at the positives, NAV is 40.84, the last trading price is 38.90.
PBV - 0.95X
Still undervalued compared to the NAV. However they're seriously in debts now due to acquisitions.. Pay off period may be a far fetched one..

Its not only Aloysius's grandson in toruble, some of our HNWIs are in debts in billions..
However, regardless of their positions, companies could run sepertely profitable know?

Good disucssion BTW..

what i say is that simple example..how did companies get value...because of wat its employees do because of what the owner do.at the end of the day if i have a business because of my decisions only the business will grow or collapse.

it is valid for every individual who runs a business.

and any business.

we talk about value of shares none of us talk about value of human capital. at the end of the because of human capital only any business collapse or succeed.

I f I was I.C. Nanayakkara because of my decisions and my other directors decisions only the company will succeed. Fwhether the share value represent a land value,sales turnover value and administrative cost it all depends on humans who are involved in it.

Simple Logic..

StockGuru wrote:......we talk about value of shares none of us talk about value of human capital. at the end of the because of human capital only any business collapse or succeed...

Re Human Capital.....
LOLC is having the Best Board any company will dream of having withing...


Read this thread you will get more info re LOLC...!
http://forum.srilankaequity.com/t20133-lolc-gets-control-of-browns-for-rs-132-b?highlight=lolc




Disclaimer...I do not hold any LOLC, BRWN or HDFC stakes at present

Value of human capital is no doubt an asset to any organisation.. why some big organizations look positiv thinking in their potential hires? Why do they carry out head hunting? Its all becuz even sometimes miracles are possible with correct kinda ppl and theirabilities

We actually need to discuss this on anothe thread...

Stock guru, if you have some knowledge on that subject, I urge you start a new thead on it.. I'm sure there are plenty of members who would love to hear something specially that we've not discussed in years (as my memory serves)

Yes this discussion is going on the wrong thread. Please start another.

smallville wrote:Value of human capital is no doubt an asset to any organisation.. why some big organizations look positiv thinking in their potential hires? Why do they carry out head hunting? Its all becuz even sometimes miracles are possible with correct kinda ppl and theirabilities

We actually need to discuss this on anothe thread...

Stock guru, if you have some knowledge on that subject, I urge you start a new thead on it.. I'm sure there are plenty of members who would love to hear something specially that we've not discussed in years (as my memory serves)

Dileepa wrote:

sanju351 wrote:

Dileepa wrote:

sanju351 wrote:History repasts ...
Mr.Thilak Karunarathna will step down and pay the way to Mr.Dhamika Perera to go to the hot seat ..

Investigations and insults to TOP GUNS LIKE Mr.Dilith Jayaweera & Nimal Perea to be withdrawn with immediate effect ..

This is disastrous, thinking about getting out of CSE if this is true.

mmm you have to pack thngs and get ready then ..before that tell us what Mr Karaunaraththna has done good to CSE ?

It is pathetic to see how people get blind by money.
I do not know what Mr Karaunaraththna has done.
But remember, regulators are not there to push the market up.
They are there to regulate the market as the name implies.
It is not the regulators job to push up the market for you to take a profit.
I think regulators are doing their job OK.
It is up to the government to take measures to stabilize the economy and improve investors confident.

Do you honestly believe such an engaged person like DJ/NP will do the job of the regulator
without considering personnel benefits. We know what this duo have done in the past.
----------------------------------------------------------------------------------------------------------
In 2000, against the advice of the Monetary Board of the Central Bank
Samurdhi Authority purchased 14.89% shares of Pan Asia Bank at a cost of Rs. 119,625,000/=
buying 8,250,000 shares at a premium of Rs. 2 each when there was no market value for Pan Asia Bank.
At the time bank had incurred loss of Rs. 234,000,000 in the year 2000.
Bribery and Corruption Commission filed allegations to Minister S. B. Dissanayake
of depositing Rs. 200 million belonging to Samurdhi Authority in Pan Asia Bank illegally.
----------------------------------------------------------------------------------------------------------
Quoted below from his own words for your reference:

N Perera wrote:I was instrumental in acquiring a major stake in Pan Asia Bank by Samurdhi. I was very close to Minister S B Dissanayake.
I moved to Pan Asia Bank as a marketing person. I met Dhammika through a mutual friend as he was interested in taking a stake in Pan Asia Bank.

With that kind of "management skills and business knowledge and practical experience", ha ha the market will be sky rocketed
I don't think the President is stupid enough to do this change.
If Mr Karaunaraththna steps down as Mrs Indrani Sugathadasa did,
I'm pretty sure the market will fall down further more.

Cheers !!!!!
ad-hoc rules by SEC is a point to make, other than that its not SEC's job to make sure investors make gains. People only think baout their personal gains, they have forgotten that they have assumed "risks" when they invest, which included present market condition.