PC House Right Issue

http://www.cse.lk/cmt/upload_cse_announcements/5341363256428_.pdf

Ratio 1 share for every 2 shares held

Issue Price 3/= per share

No of Shares to be issued 114,466,667

To fund the working capital

This would go to stated capital. Last time we discussed this, the site got more hits!

This is shit. Rishan messing up every thing.

Fantastic. IPO at RS 11 , Share at Rs 3.9 . Now they want more money from shareholders bringing the share price down further. In this environment we shouldn;t be too surised if PCH hits Rs 3.

Gaja wrote:Ratio 1 share for every 2 shares held

Issue Price 3/= per share

No of Shares to be issued 114,466,667

To fund the working capital

slstock wrote:Fantastic. IPO at RS 11 , Share at Rs 3.9 . Now they want more money from shareholders bringing the share price down further. In this environment we shouldn;t be too surised if PCH hits Rs 3.

Gaja wrote:Ratio 1 share for every 2 shares held

Issue Price 3/= per share

No of Shares to be issued 114,466,667

To fund the working capital

If the Working capital requirement is the major issue, i think they should have a serious look on the Inventories and Trade Receivables.

Am looking forward the 2012/2013 results to see the Impairment implication

Yes they have bigger issues at hand. Taking more money is putting a plaster to the issues at hand.

What a time to go for a rights. Could not they have gone for right issue when share price was at Rs 6 . Atleast they could have got a better right price.

Reg share price : Unless Rishan tries to push this to make rights attractive ( even if he does it can be short lived. How long can he push it up? ) the share price fate looks downhill.

As we do not give buy, sell, ; hold here I will try to put it this way. " If I am a shareholder I will be on my toes to protect whatever capital I have" . IF this goes up ...... ;-)


I remember a famous guy from another forum saying PCH can hit Rs 100 in a few years.

Gaja wrote:

slstock wrote:Fantastic. IPO at RS 11 , Share at Rs 3.9 . Now they want more money from shareholders bringing the share price down further. In this environment we shouldn;t be too surised if PCH hits Rs 3.

Gaja wrote:Ratio 1 share for every 2 shares held

Issue Price 3/= per share

No of Shares to be issued 114,466,667

To fund the working capital

If the Working capital requirement is the major issue, i think they should have a serious look on the Inventories and Trade Receivables.

Am looking forward the 2012/2013 results to see the Impairment implication

As this rights announcement comes on 14th, How could PC house directors can shed their shares on 7th, just 7 days before?? Looks so unethical....

Does the standard provision of 2 weeks no-transaction period for directors prior to announcement lapsed?

Read this link, how investors are cheated by these type of companies and promoters.
http://forum.srilankaequity.com/t26503-the-stock-market-and-its-dark-secret?highlight=stock

Jana1 wrote:As this rights announcement comes on 14th, How could PC house directors can shed their shares on 7th, just 7 days before?? Looks so unethical....

Does the standard provision of 2 weeks no-transaction period for directors prior to announcement lapsed?

Someone should highlight that to the SEC, but as usual would be a waste of time and a waste of a mail.

Unfortunately CSE is mainly a Junk Yard for Craps to postphone their bankruptcy.....

Thank god i have only few shares and i will not subscribe for the rights issue. And thanks for everyone in the forum who warned not to burn the fingers by buying PCH. Either the bunch of directors doesnt know when to go for a rights issue or they are simply trying to suck some more money before the company go for a six.

Whitebull wrote:Unfortunately CSE is mainly a Junk Yard for Craps to postphone their bankruptcy.....

Exactly! I have to say CSE lacks quality companies and honest business men.
Not to promote anything, but to give an example of what I feel a safe to investment is　↓

Purpose of right - simply w/c funding???
They should at least tell exactly what they plan to do with the money. (at least they can fool someone)

Dileepa wrote:
Exactly! I have to say CSE lacks quality companies and honest business men.
Not to promote anything, but to give an example of what I feel a safe to investment is　↓

Yes NEST is a good one.
There are some more counters to be considered.

Redbulls wrote:

Dileepa wrote:
Exactly! I have to say CSE lacks quality companies and honest business men.
Not to promote anything, but to give an example of what I feel a safe to investment is　↓

Yes NEST is a good one.
There are some more counters to be considered.

It is a highly efficient company with minimum capital, well run with little retained profits used for reinvestment!

They had revenues of approx Rs29B in 2012 on sales of household brands such as Nestomalt, Maggi etc. and profits before tax of Rs3.5B and PAT of Rs3B.

In effect it pays out its whole net profit as a dividend and 91% of the shares are owned by Nestle SA the parent, with 19 other shareholders owning 4%.

Whilst the Company has a NBV of about Rs5B in fixed assets, its total share capital and reserves is only Rs3.8B which includes this year’s profits!

CSE.SAS wrote:

Redbulls wrote:

Dileepa wrote:
Exactly! I have to say CSE lacks quality companies and honest business men.
Not to promote anything, but to give an example of what I feel a safe to investment is　↓

Yes NEST is a good one.
There are some more counters to be considered.

It is a highly efficient company with minimum capital, well run with little retained profits used for reinvestment!

They had revenues of approx Rs29B in 2012 on sales of household brands such as Nestomalt, Maggi etc. and profits before tax of Rs3.5B and PAT of Rs3B.

In effect it pays out its whole net profit as a dividend and 91% of the shares are owned by Nestle SA the parent, with 19 other shareholders owning 4%.

Whilst the Company has a NBV of about Rs5B in fixed assets, its total share capital and reserves is only Rs3.8B which includes this year’s profits!

As Warren Buffet once said, Great Companies do not necessarily make great stocks. If you look at NEST, its trading at over 30 times earnings, over 20 times Book Value and at a 3 % Dividend Yield. But no doubt - Great Company.

But then again, we should not be talking about great companies on a PC House thread !

Why they (PCH) have decided to face this kind of embarrassment by going for a rights issue to collect 343 million when they have,

A) 1,230 million in Inventories and
B) 1,040 million to receive from outside parties.

C) They have to pay just 160 million to outsiders.

D) Furthermore, they have 350 million in retained earnings !
( Rainmaker's favorite !)



A) and B) = mayday mayday ... --- ... ... --- ...
C) = No friends no rescue
D) = summa
I really feel sorry for everybody including young husband and wife.

Will this rights issue really solve the problem? I guess not.

And as Whitebull pointed out, this is just a small way of postponing their bankruptcy

harine putha,now sell sell sell
get out..

]

The quarterly data summarised.

I was rather surprised. I was under the impression that PCH was building up inventories and receivables rather rapidly.

But last quarter of 2012 was the turning point, where probably the revenue decreased and the stock ended up in inventory.

things that I note
1) Borrowings has mostly been short term, which seems to have been rolling over for many periods.
2) Virtually no payables

Do these mean that anyone, lenders and suppliers, are not willing to give them credit?

3)They have been working with low amounts of cash.
4)Although revenue is decreasing the gross margin has improved. But the loss of gross profit is hurting the bottom line mainly due to the high finance cost, which is now more than 10% of the revenue.

I feel if the new money is used to pay off some debt, they might have a chance to turn around. Provided the WC is adequate and the business is managed efficiently. The management, well, ... up to them.

Another thing is if these inventory is actually worth this much? or is it just obsolete stock being carried forward? And are all these receivables recoverable?

ultimately rish & granny will have to buy the rights.

hope pch hits 2.00

sureshot wrote:ultimately rish & granny will have to buy the rights.

hope pch hits 2.00

sureshot will this be the future for mr and mrs baloney as well?

inefficient management begging for more money from shareholders.

More than 50% of issue shares under margin account as at 31-12-2012



More Info :- PCH Interim Financial Statements as at 31-12-2012

Chinwi wrote:Why they (PCH) have decided to face this kind of embarrassment by going for a rights issue to collect 343 million when they have,

A) 1,230 million in Inventories and
B) 1,040 million to receive from outside parties.

C) They have to pay just 160 million to outsiders.

D) Furthermore, they have 350 million in retained earnings !
( Rainmaker's favorite !)



A) and B) = mayday mayday ... --- ... ... --- ...
C) = No friends no rescue
D) = summa
I really feel sorry for everybody including young husband and wife.

Friend the this is the same i feel, see i commented above

If the Working capital requirement is the major issue, i think they should have a serious look on the Inventories and Trade Receivables.

Am looking forward the 2012/2013 results to see the Impairment implication