Amana Takaful right issue

pth · 1 Amana Takaful right issue Sun Apr 17, 2011 7:09 pm

pth

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Dear friends
I'm new to the market and i'm planning to buy some ATL shares after the right issue.
what will be the good price.
and will it hit 4/= near future
i think it will trade around same price level even after right issue
need some help!
please correct me if i am wrong.
thanx all

uditha9 · 2 Re: Amana Takaful right issue Sun Apr 17, 2011 7:32 pm

uditha9

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that depends on general market condition & also whether large amount of additional shares were given.also since its 1for1 rights issue large number of new shares coming into the market .it will take some time to move up.unless there is a big buyer like like in the case of csf

pth · 3 Re: Amana Takaful right issue Sun Apr 17, 2011 8:37 pm

pth

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thanx uditha9
then i think it will be longtime investment rather than medium time
they got the banking license from cb. is that effect to increase the share value?

Akalanka · 4 Re: Amana Takaful right issue Sun Apr 17, 2011 9:38 pm

Akalanka

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I am also new to the market , but was stucked up with ATL for about 4 months so have some brief idea ....

According to ATL they are going to raise 500Mn capital by this right issue and it will lead to double there share capital. And they are going to invest them mainly on life and general insurance.

And they are having a plan to spread there service broadly in the north western ares which sounds increased profitable market for them self , which can affect the share price..

But the ATL rights were sold from onwards 0.20 to .90 so the total cost of a new ordinary share will be around 1.70 to 2.40 for those buyers.

Those who had bought ATL on 24/01 on its highest price recently recorded (4.50) may have brought down the average cost by rights trading

So i think that this share will not hit 4.00 in the near future.
but do have a high potential. So when the new shares are appearing in the market if can collect at low price hope that will be nice. . .

these are my personal ideas and i may be wrong, if so plz correct me cuz I am also stunned with ATL...

Smile

raa · 5 Re: Amana Takaful right issue Mon Apr 18, 2011 10:34 am

raa

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ATL may move up under two conditions - General Finance run or news regarding developments with its banking licenses.

Ideally, there is long term value in the stock with the developments with the banking license but it is important to note that getting the license alone does not mean new revenues or improved bottom lines. It will take some time to reap the benefits of new ventures so unless your investment horizon is suitably long term, do not buy on this news.

Simply glancing at the company fundamentals, the conclusion is that they are a revenue generating business that's making a loss. Negative EPS over the last 1 year, however strong revenue growth and they show a gross profit which is important to ensure the business can continue running. Someone else, a little more savvy will have to give you a proper run through and valuations perspective on the company as I am incompetent that way. My point I was trying to make is that, even in a finance run, the share might not hit 4.50 because as I recall, there was a high net worth individual either collecting or dumping quantities of the share so unless similar circumstances repeat themselves, the share will not reach 4.50 anytime soon. Gradually, over time, yes.

There are a lot of blanks in this reply, so I'm hoping someone else might be able to validate what i'm saying.

P.S: I am sitting on a little bit of this stock myself.