LDEV Rights: more attractive than many IPO's

Hey guys what do you think?? I have 7500 rights I am thinking to convert them rather than selling them at current price. Less than 3 rupees no. way ....

LDEV was trading at 32 to 33 levels few days back even during the most red days it was down to about 31 I think....

If we get the rights converted and hold them for few months we will be able to get at least 10% gain...

Even if you don't have rights now, if you can get some rights below 2 I think it will be a good investment..

Regarding Expo Lanka.....

blue chips got it about 6 rupees and they are selling it to us at 14 rupees ... Oh no??


What do you guys think... Can few of the guys analyse the fundamentals of the two company...

Look closely at the WAPO chart and then decide what you want to do

tubal wrote:Look closely at the WAPO chart and then decide what you want to do

WAPO is highly speculative share.... Even with WAPO if you have played smart you may have gained some....

But I want to compare Expo lanka and LDEV... your comments appreciated.

ipoguru wrote:

tubal wrote:Look closely at the WAPO chart and then decide what you want to do

WAPO is highly speculative share.... Even with WAPO if you have played smart you may have gained some....

But I want to compare Expo lanka and LDEV... your comments appreciated.

and LDEV isn't a speculative share? On what basis do you say that?

tubal wrote:

ipoguru wrote:

tubal wrote:Look closely at the WAPO chart and then decide what you want to do

WAPO is highly speculative share.... Even with WAPO if you have played smart you may have gained some....

But I want to compare Expo lanka and LDEV... your comments appreciated.

and LDEV isn't a speculative share? On what basis do you say that?

some of these billion plus rights issues deserve to fail. given the history of the CFLB/LCEY management when it comes to continous rights issues LDEV got what it deserved ( a company with a market cap of 200 million trying/managing to raise 2.4 BILLION shows the kind of investors we have in the market).

Having said that, LDEV at Rs 25 ceases to be a speculative share since in theory (and assuming all rights are converted) they have asset/cash backing of 25 (P/BV of 1) WAPO at 200 levels continue to be spec since they only have an asset/cash backing of 30-40 (P/BV of 5).

Of course at 30 levels it starts becoming speculative again

LDEV

Nature of Business
Manufacture and sale of Readymix concrete and Provision of water proofing and industrial flooring to building.

They are going to acquire following shares with the money

Lankem plantations Ltd 41,417,276 shares (Is this listed in CSE what is the code)
Kotagala plantations Ltd 6 million shares (KOTA)

Each share is purchased at a price of 25 rupees and rest of money kept for further developments.

So they are into good business constructions is increasing in the country and plantations are doing good.

By the way KOTA is trading at 155 levels .... Any guys who knows lankem plantation LTD...

innam wrote:

tubal wrote:

ipoguru wrote:

tubal wrote:Look closely at the WAPO chart and then decide what you want to do

WAPO is highly speculative share.... Even with WAPO if you have played smart you may have gained some....

But I want to compare Expo lanka and LDEV... your comments appreciated.

and LDEV isn't a speculative share? On what basis do you say that?

some of these billion plus rights issues deserve to fail. given the history of the CFLB/LCEY management when it comes to continous rights issues LDEV got what it deserved ( a company with a market cap of 200 million trying/managing to raise 2.4 BILLION shows the kind of investors we have in the market).

Having said that, LDEV at Rs 25 ceases to be a speculative share since in theory (and assuming all rights are converted) they have asset/cash backing of 25 (P/BV of 1) WAPO at 200 levels continue to be spec since they only have an asset/cash backing of 30-40 (P/BV of 5).

Of course at 30 levels it starts becoming speculative again :twisted:

They are going to buy part of their own company with this money (that means the family needs some money Is it....)
Any way buying new company is better than just raising money.... What we need to analyse is what they are buying is worth for the money.....

Selling at current levels give me a loss I bought at 85
:x :x That's why I was thinking to get rights converted will it give me further loss ???

ipoguru wrote:LDEV

Nature of Business
Manufacture and sale of Readymix concrete and Provision of water proofing and industrial flooring to building.

They are going to acquire following shares with the money

Lankem plantations Ltd 41,417,276 shares (Is this listed in CSE what is the code)
Kotagala plantations Ltd 6 million shares (KOTA)

Each share is purchased at a price of 25 rupees and rest of money kept for further developments.

So they are into good business constructions is increasing in the country and plantations are doing good.

By the way KOTA is trading at 155 levels .... Any guys who knows lankem plantation LTD...

Your post is misleading they are not acquiring shares of Lankem Plantations and KOTA.....they are buying 41 million shares of Agarapathana plantations from Lankem and 6 million shares of Agarapathana plantations from KOTA.

http://www.cse.lk/cmt/uploadAnnounceFiles/5851299655983_446.pdf

innam wrote:

ipoguru wrote:LDEV

Nature of Business
Manufacture and sale of Readymix concrete and Provision of water proofing and industrial flooring to building.

They are going to acquire following shares with the money

Lankem plantations Ltd 41,417,276 shares (Is this listed in CSE what is the code)
Kotagala plantations Ltd 6 million shares (KOTA)

Each share is purchased at a price of 25 rupees and rest of money kept for further developments.

So they are into good business constructions is increasing in the country and plantations are doing good.

By the way KOTA is trading at 155 levels .... Any guys who knows lankem plantation LTD...

Your post is misleading they are not acquiring shares of Lankem Plantations and KOTA.....they are buying 41 million shares of Agarapathana plantations from Lankem and 6 million shares of Agarapathana plantations from KOTA.

http://www.cse.lk/cmt/uploadAnnounceFiles/5851299655983_446.pdf

May be I misunderstood the sellers are Lankem plantations Ltd Kotagala plantation ltd and what they are buying is Agarapathana Plantation Ltd ..... Thanks for pointing out...

The most important questions how we can find what they are buying is worth for the money....

ipoguru wrote:
The most important questions how we can find what they are buying is worth for the money....

hmmm maybe management will help you out and put out a press release about the magical future prospects from the tea plantations or at the very least data about the yearly profits from Agarapathana.

when EAST had a 3 for 1 rights issue they put out a release about an Asset Revaluation just before the rights issue closed. let's see if any "carrots" are shown to LDEV shareholders next week.

ipoguru wrote:

tubal wrote:Look closely at the WAPO chart and then decide what you want to do

WAPO is highly speculative share.... Even with WAPO if you have played smart you may have gained some....

But I want to compare Expo lanka and LDEV... your comments appreciated.

If I can sell the rights at 3 it I will breakeven....

When I check WAPO rights trading chart I could see that initially rights went at very low price and after lot of rights sold at low price they took up the rights price at the closing.... This may be to keep their share price at a high value.... Does this mean if I can be patient till may be 11th or 12 I will be able to sell at 3 rupees.

Its a game isn't it

I did bit of research of Agarapathana plantation Ltd....

This is what posted in their website..

Lankem Tea & Rubber Plantations Limited has about 6000 hectares of Tea in production in the Western High grown region (2300 hectares in Kotagala under Kotagala Plantations and 3700 hectares in the Agras Valley under Agarapatana Plantations). Agarapatana Plantations has a further 2900 hectares of Tea in bearing in the Uva High grown region, whilst Kotagala Plantations has a further 250 hectares of Tea in the Low grown Kalutara district.

So agarapathana plantation have 6600 hectares of tea. That is 16,308 acres of Tea..
At what price would you buy a Acre of tea plantation ... Let me put it as 200,000 rupees. Will you buy a tea acre for 200,000 rupees . yes I guess...
So the minimum value of plantation should be 3,261,720,000 rupees.
(They must have vehicles, Tea factories,offices ect )

61.88% of this will be 2,018,352,336 rupees....

They are buying this using 47,417,276*25 (1,185,431,900 rupees) ....

Pretty cheap isn't it ...

:lol: :lol:

I just understood that this may not be correct .... Their debts and other commitments needs to be considered.....

I am liking this.... Analysis I mean...

Experience guys can you guys guide me how to do a better analysis....

I am going to buy Whole LDEV company one day.... :lol: :lol:

tubal wrote:Look closely at the WAPO chart and then decide what you want to do

well said........look SING chart also............
the problem with LDEV rights was too much proportion,so too much high liquidity......
if not the lodgment of rights will be less like in MARA,HASU scenarios,and may have a run in short time and will incur disaster losses to peak buyers who bought blindly......

ipoguru wrote:Hey guys what do you think?? I have 7500 rights I am thinking to convert them rather than selling them at current price. Less than 3 rupees no. way ....

LDEV was trading at 32 to 33 levels few days back even during the most red days it was down to about 31 I think....

If we get the rights converted and hold them for few months we will be able to get at least 10% gain...

Even if you don't have rights now, if you can get some rights below 2 I think it will be a good investment..

Regarding Expo Lanka.....

blue chips got it about 6 rupees and they are selling it to us at 14 rupees ... Oh no??


What do you guys think... Can few of the guys analyse the fundamentals of the two company...

i dont think so with 15 to 1 rights issue there is a huge dilution .best thing for you to do is to sell your rights & ASK FOR ADDITIONAL SHARES.you will definitely get additional