CSD - The hidden gem

My reasons for selecting CSD as one of the best shares in the CSE:

- Debt-Equity ratio is an excellent 0.1%

- An outstanding Price to Book value of 0.34

- A 50+ perch land at Union Place to be included in CSD’s portfolio and the construction of a 10 storey office complex on said land

- Additions: CSD is hoping to come up with extra value additions to their existing Seylan Tower premises

- Income increase: Rentals expected to go up after refurbishments

- Electricity cost reduction program: CSD has tied up with Access Solar Systems for bringing up innovative solar energy system in order to reduce electricity consumption of Seylan Towers by approx 30%.

- Absolutely no connection to the former regime - Kotelawala etc have nothing to do with this company - new shareholders and directors.

- 2 largest shareholders (other than the Bank) are JB Cocoshell and Dhammika Perera: two intelligent investors.

All Time High: 23.90
Current Price: Rs 10 (with a NAV of almost 29 - under-valued)
Target Price within 12 months*: Rs 14 (40% growth)

Disclaimer: please do your own research before making a decision. I am only stating my opinion. Dont let people tell you what to buy/sell - do your own analysis. I am not giving advice or making a recommendation - just stating my personal opinion based on facts. Thank You.

*Given that market conditions remain stable

I like the last point. 02 Intellingent investors

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

DP ?? really.

Balanced_Views wrote:

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Balanced_Views wrote:

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Ohh.. You mean PC house???

Jana1 wrote:

Balanced_Views wrote:

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Ohh.. You mean PC house???

JB Cocoshell has billions and billions of ruppees in the market and exposed a tiny portion of their portfolio to PCH as a courtesy since they probably thought IPO's did well - and now everyone thinks that it was some major investment they made and judge them by that!

It wasnt even 1% of their portfolio and for every bad decision you claim they made, I can show 100 good ones!

This is like calling Sangakkara a horrible batsman cos he gets out once for 5 runs!

malanp wrote:

Balanced_Views wrote:

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

So basically Net Assets = Rs 1 billion
PBV = 0.34

Buy the company, stop the company to prevent further losses from eroding into net assets - and then sell all the assets! Big profit. Sorted.

Im not sure if that is the plan, but if it is: its good for the Dr

But I wouldnt recommend anyone to buy PCH

Balanced_Views wrote:

malanp wrote:

Balanced_Views wrote:

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

So basically Net Assets = Rs 1 billion
PBV = 0.34

Buy the company, stop the company to prevent further losses from eroding into net assets - and then sell all the assets! Big profit. Sorted.

Im not sure if that is the plan, but if it is: its good for the Dr

But I wouldnt recommend anyone to buy PCH

Sumthng interesting... Assest stripping he never did, even though he does, Do u think 10% holding is enough and institutional funding like EPF will allow???

I reckon u to take inventory off as it may be obsoleted...Den calculate

Jana1 wrote:

Balanced_Views wrote:

malanp wrote:

Balanced_Views wrote:

Hawk Eye wrote:I like the last point. 02 Intellingent investors

Yes its very important see what sort of investors get into a share - For example, JB Cocoshell normally collects good shares with good fundamentals.

Last week very intelligent investor Dr.Senthilverl collected PCH, so according to this theory people should collect PCH now.

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

So basically Net Assets = Rs 1 billion
PBV = 0.34

Buy the company, stop the company to prevent further losses from eroding into net assets - and then sell all the assets! Big profit. Sorted.

Im not sure if that is the plan, but if it is: its good for the Dr

But I wouldnt recommend anyone to buy PCH

Sumthng interesting... Assest stripping he never did, even though he does, Do u think 10% holding is enough and institutional funding like EPF will allow???

I reckon u to take inventory off as it may be obsoleted...Den calculate

I have taken inventory off :)Ive only counted Property etc - check the Q Report on CSE website please

Yeah 10% is insufficient but he might buy more or have an agreement that they will dissolve

Hawk Eye wrote:I like the last point. 02 Intellingent investors

There are many other excellent reasons to invest as well - the best share in my opinion!

Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

You hit the nail. Million time correct.

stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

Not true - most shareholders are long term anyway

I have stated facts - not rumors and baseless comments

csd may be hidden gem but no one seem to interest it for long time now. that is the problem. one time it went up to 19 but came back to 10.

Redbulls wrote:

stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

You hit the nail. Million time correct.

 

econ wrote:csd may be hidden gem but no one seem to interest it for long time now. that is the problem. one time it went up to 19 but came back to 10.

CSD can become a real gem if They can kick off the SEYB from the tower and instead set up a Casino  

casinos everywhere. wow,Colombo will look like Lasvegas

WildBear wrote:

econ wrote:csd may be hidden gem but no one seem to interest it for long time now. that is the problem. one time it went up to 19 but came back to 10.

CSD can become a real gem if They can kick off the SEYB from the tower and instead set up a Casino  

Well turnover WoW is relatively high these days - I think it'll reach 14 soon - technicals support this

stockup&down wrote:

Redbulls wrote:

stocks hunter wrote:Be careful. major portion of this hidden gem is with Capital trust a/c s. at any time they will unload these for u.

You hit the nail. Million time correct.

 

If you want to believe speculative nonsense which is based on silly lies, you can listen to certain people. If you want to believe opinion based on facts (which I believe is what this brilliant forum is all about) you can listen to people who give such opinions.

Do your own research. Capital Trust doesnt have the majority of this - its held with Seylan, JB Coco (who trade through JB) and Dhammika Perera (who is a long term investor) and I think the 4th largest is held by another fund management company - they wont unload it in a irresponsible manner. I hear that LSL collects quantities of this for its clients and its well known in the market that its highly under-valued. People are holding on to see it go up.

So now this "Balanced_Views" opened up an acc yesterday to talk abt CSD and its all "Biased_views" but not "Balanced_Views". I dont see any CONS to invest other than the ones in declaimer line.. All are positive facts.. So now u mean to say this is the GEM????
If so I think D. Perera would've been the major share holder (if he's that intelligent than us)  

Balanced_Views wrote:

JB Cocoshell has billions and billions of ruppees in the market and exposed a tiny portion of their portfolio to PCH as a courtesy since they probably thought IPO's did well - and now everyone thinks that it was some major investment they made and judge them by that!

So u mean to say that veterans in this field even do mistakes?

Balanced_Views wrote:

Dr may be doing a classic case of asset stripping. To buy over a company that is performing poorly, shut it down and sell all of its assets. Have you seen the value of the property, plant and equipment in their last quarter balance sheet? Rs 1 billion. Total assets at Rs 4 billion and liabilities only 3 billion or so. Market capitalization (given that its Rs 1.40 a share) = Rs 350 million.

You may have a point there but looking at Dr. Senthil's past decisions, recent ones went wrong.. His involvement in The Finance at high made his money fall in half and he's just a director.. Besides, Dr. will have to collect more and more PCH to take the ownership... But lookin at their inventory, as some said, it could be obsoleted.. Not worthy..
Then again, are we that sure on their valuation of property taking into the picture the reputation PCH has on ppl's mind?

Balanced_Views wrote:
If you want to believe speculative nonsense which is based on silly lies, you can listen to certain people. If you want to believe opinion based on facts (which I believe is what this brilliant forum is all about) you can listen to people who give such opinions.

Do your own research. Capital Trust doesnt have the majority of this - its held with Seylan, JB Coco (who trade through JB) and Dhammika Perera (who is a long term investor) and I think the 4th largest is held by another fund management company - they wont unload it in a irresponsible manner. I hear that LSL collects quantities of this for its clients and its well known in the market that its highly under-valued. People are holding on to see it go up.

Capital Trust as I can remember the broker hut which dragged this share from 11 to 18 in last run.. Ultimately Sold after June 2011 and of course bought back later (should I say cheap?).. Since its not ethical to talk about these I refrain from further commenting.. But buyers be aware..
No broker hut needs to have a majority to up a share.. they can do it with the help of few major clients, all they have to do is just spread the correct words   



Ohh.. I'm not saying Balanced_Views is from CT... Nor this CSD is a bad share.. In fact CSD is good but not a GEM.. THey dont have much to talk about as revenue generators or multipliers in coming years so that investors rally on this.. Only thing is its trading at more than half its NAV.. I thought this as an advantage earlier but I guess since they cannot make their income increase in big portions, its justifiable.. May be that's why Mr. D Perera is also silent..

Boss is sensitive so I will edit the post.

On the other hand, one person at Asiri said that this man will be the richest man in the cemetery. God Udeshi it took me some time to find out why they say these things

1  Seylan Bank PLC - 51.83 %
   76,688,880


2  Mr Perera Kulappuarachchige Don Dammika -5.78 %
    8,546,640


3  J B Cocoshell (Pvt) Ltd - 1.95 %
  2,886,921

rainmaker wrote:Boss is sensitive so I will edit the post.

On the other hand, one person at Asiri said that this man will be the richest man in the cemetery. God Udeshi it took me some time to find out why they say these things

Most of the times your posts didn't make any sense or not in the position to understand...Not sure why??

which man will be richest?? Why God Udeshi? Is he god becz of his age?? (I guess u r talking about Asha Phillipi Udeshi).

People try to be smart by saying part of the story...

Jana1 wrote:

rainmaker wrote:Boss is sensitive so I will edit the post.

On the other hand, one person at Asiri said that this man will be the richest man in the cemetery. God Udeshi it took me some time to find out why they say these things

Most of the times your posts didn't make any sense or not in the position to understand...Not sure why??

which man will be richest?? Why God Udeshi? Is he god becz of his age?? (I guess u r talking about Asha Phillipi Udeshi).

People try to be smart by saying part of the story...

M M Udeshi (deceased) is the richest man in the cemetery

DP is an informal fund manager. He has been around during the UNP time and was close to MahaRaja. Do you remember Paskaralingam?