CIT any Information?

Backstage · 1 CIT any Information? Tue Apr 26, 2011 4:01 pm

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Hi all,
Though I am new here, I have been visiting and learning much from you all, a big thank you.
I have been advised to sell my cflb after the split and to buy into cit !
The cit data on the cse site does not look attractive.
Any info welcome.
Thanks

specialist · 2 Re: CIT any Information? Tue Apr 26, 2011 4:17 pm

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Yes it is best to sell the CFLB shares after the split because the prices would move up...

Backstage · 3 Re: CIT any Information? Tue Apr 26, 2011 4:24 pm

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specialist wrote:Yes it is best to sell the CFLB shares after the split because the prices would move up...

What about the shift to cit ?

specialist · 4 Re: CIT any Information? Tue Apr 26, 2011 5:45 pm

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Yes it is Worth at the current Price level.

Backstage · 5 Re: CIT any Information? Tue Apr 26, 2011 5:51 pm

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specialist wrote:Yes it is Worth at the current Price level.

Thanks, I am wondering why there is such a lack of information re: cit ???

Antonym · 6 Re: CIT any Information? Tue Apr 26, 2011 6:36 pm

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@Backstage: Take a look at CIT's December 2010 financial statements on the CSE website... The stated 'Net assets per share' is Rs 22.30 - does not look attractive, right?

But, wait! Have you looked at the Notes on the last page: "Cost of quoted shares as at 31st December 2010 was Rs 118 million against the market value of Rs 1,622 million." (Figures rounded off by me.)

Do the math - What's the actual Net assets per share on December 31st? Rs 296 or thereabouts? (Look up CIT's Annual Report 2009-10 and see CIT's portfolio; I'm guessing that their NAV should be at least Rs 325 - 330 now.)

Not attractive? Smile

Antonym · 7 Re: CIT any Information? Tue Apr 26, 2011 6:40 pm

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This is not a recommendation to buy - that's for you to decide.
I just wanted to indicate that information is available if you are willing to search for it...

innam · 8 Re: CIT any Information? Tue Apr 26, 2011 6:45 pm

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Antonym wrote:
But, wait! Have you looked at the Notes on the last page: "Cost of quoted shares as at 31st December 2010 was Rs 118 million against the market value of Rs 1,622 million." (Figures rounded off by me.)

Do the math - What's the actual Net assets per share on December 31st? Rs 296 or thereabouts? (Look up CIT's Annual Report 2009-10 and see CIT's portfolio; I'm guessing that their NAV should be at least Rs 325 - 330 now.)

Just to add, and to make sure no one gets too mislead- most of CIT's NAV increase comes about due to their ownership of 5 million CFLB shares.....given that CFLB is a group company with cross shareholdings in CIT as well, there is a reasonable doubt as to whether CIT will ever sell of their CFLB shares. The value may only be unlocked in the event someone takes over CFLB.

Backstage · 9 Re: CIT any Information? Tue Apr 26, 2011 7:07 pm

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Antonym wrote:This is not a recommendation to buy - that's for you to decide.
I just wanted to indicate that information is available if you are willing to search for it...

Points noted, will try to do my homework, I am sort of new and feeling my way around,still learning how to read a financial report. Thanks.

Backstage · 10 Re: CIT any Information? Tue Apr 26, 2011 7:10 pm

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innam wrote:

Antonym wrote:
But, wait! Have you looked at the Notes on the last page: "Cost of quoted shares as at 31st December 2010 was Rs 118 million against the market value of Rs 1,622 million." (Figures rounded off by me.)

Do the math - What's the actual Net assets per share on December 31st? Rs 296 or thereabouts? (Look up CIT's Annual Report 2009-10 and see CIT's portfolio; I'm guessing that their NAV should be at least Rs 325 - 330 now.)

Just to add, and to make sure no one gets too mislead- most of CIT's NAV increase comes about due to their ownership of 5 million CFLB shares.....given that CFLB is a group company with cross shareholdings in CIT as well, there is a reasonable doubt as to whether CIT will ever sell of their CFLB shares. The value may only be unlocked in the event someone takes over CFLB.

My source gave the impression that cit would be a major beneficiary after the split.