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PCH IS A MEDIUM AND LONG TERM STOCK

+19
madu1977
econ
hafzeek123
Gaja
Stockmate
monash
limestone
hasi84
senish
Meta Trader
godswen
mono
tubal
dulandesilva
sunandaf
salt
rmnihad
Rocky
NEWSTOCK
23 posters

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1PCH IS A MEDIUM AND LONG TERM STOCK Empty PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 1:41 pm

NEWSTOCK


Stock Trader

Important developments: As per quarterly reports AS AT31/12/2010

New intelligent players including two foreign names have become some of the major shareholders during last quarter. They can accumulate further.

Three Top government institutions are major shareholders of this company

Dr SENTHILVERL has increased his share percentage massively. Who knows he can go above 10% or 20%/ Just like HOPL, TYRE, CWM,, HOPL, ECL and SEMB in the past. . He like tech companies.

Long-term debt has come down massively from Rs, 209,525,000 to Rs. 34,850,000.- What a massive improvement?Finance expert Mr Mangala Boyagoda is doing find job there. First step in the rebuilding the company to the next level. They are reshaping their finance intelligently

Bank overdraft has reduced dramatically.

Current asset has increased significantly. Positive working capital. Current asset equal to twice the current liabilities. Company will not go bankrupt.

NB: WARREN BUFFETT DOES NOT LIKE DEBT

Warren Buffett does not like debt and does not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable

Now let us talk about some other new hidden stocks in CSE.


http://print.dailymirror.lk/index.php/news/front-image/27772-trilingual-high-tech-sri-lanka.html

President outlines his vision and mission for new era

President Mahinda Rajapaksa in his address to the nation yesterday after taking oaths for his second term said the country must move towards a future generation that was trilingual.

He said he hoped to raise the level of computer literacy to 75 per cent and make the future generation true heroes of technology in the modern world with the names of Sri Lankans topping the list in the fields of science and technology. The president said our generation could achieve this victory by making our country the knowledge hub we intend it to be.


http://www.sundayobserver.lk/2010/11/21/pol05.asp

We are also in the process of developing economic hubs, naval hubs, space, a knowledge society and IT literacy rates at school level

http://www.treasury.gov.lk/docs/pressrelease/pressrelease-ibm-20100811.pdf

Information Technology vital for Economic Growth

Deputy Minister of Finance & Planning Dr. Sarath Amunugama

With the end of the thirty year cancerous war, Sri Lanka is emerging towards a rapid growth in all sectors and the contribution to stimulate the strategies, adopted by the government to achieve her targets, the information technology could accomplish a massive service said Senior Advisor and the Hon. Deputy Minister of Finance and Planning Dr. Sarath Amunugama.

http://www.xe.com/news/2010-11-19%2005:32:00.0/1534409.htm?c=1&t

However, the government is expected to announce some
concessions for outside investment in the agriculture, tourism,
ports, fisheries, information technology, and business process
outsourcing sectors.

http://www.moneyreport.lk/fullstory.php?nid=201007241248538362

Sri Lanka's PC House will become more profitable after IPO:experts

Group bottom line expected to grow 20 percent year-on-year, despite declining margins

NDB is projecting a forward PE ratio of 10.23 times earnings in 20011, 8.72 times in 2012, and 7.48 times in 2013.
"
If you take a P/E ratio of 15 but the growth would be about 20 percent so the P/G to growth (PEG) ratio is much less than one," Senaka Kakiriwaragodage, assistant vice president at NDB Investment Bank told LBR.
"
I think that for a tech company which is supposed to take a boom in the next few years that will be a very attractive valuation

Business Diversification

PC House group is the one of the main dealers in Sri Lanka for Dell computers. The other is Softlogic Computers which is also planning an IPO.
Institutional sales account for about 55 percent of total hardware revenue, while the rest is split between retail, spare parts, upgrades and printing toner sales

However the firm says hardware sales are booming and is expected to grow exponentially in the next few years which would expand its present large customer base further to mitigate business risks such as supply and demand shocks.
"We are not depending on one single customer or maybe only for few customers, we are into many segments like corporate sector, public sector and retail business, which is broken into rural and the city sales," Rishan said.
Product wise also we have a portfolio of maybe 30 to 35 products of distribution so we will not be affected if there's any turbulence in supply, we have mitigated that risks also."

Greenwich Lanka Limited an IT physical infrastructure, systems integration and business application company was bought over by PC House in 2007.
The firm says its relatively new BPO (business process outsourcing) and KPO (knowledge process outsourcing) business units would increase future margins while existing hardware business sales are expected to grow substantially.
Its BPO business unit, Procifinity Limited has already signed a contract with the department of registrations to digitally document certificates as part of the government e-governance initiative.

The group is planning a 100 seat BPO operation in Jaffna, to provide accounting and back office services to the international market.

About 300 million rupees of fresh capital raised form the IPO will go to Procifinity Limited which is 90 percent owned by the PC House
Outsourcing data centers which is something relatively new in Sri Lankan which we believe will happen in a big way here," Sarath Wickramanayake, Director at PC House said.

2PCH IS A MEDIUM AND LONG TERM STOCK Empty PCH from a different Angle Fri Feb 04, 2011 2:04 pm

Rocky

Rocky
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

NEWSTOCK,

In photography, view points and angles are critical in getting a better exposure of the object.
Same goes with understanding a company.

Your approach to this dicey share / company is very innovative.
You have managed to convey the idea that the Lords / Gods to be are condescendingly taking a close interest in the PCH and that the confidence of the common layman / laywoman will grow.

If that happens, I will definitely buy shares in the company despite all negative comments made by me in my previuos posts.

Is this analysis correct?

Please revert.


3PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:18 pm

rmnihad


Equity Analytic
Equity Analytic

Newstock,
You have analyzed thoroughly in terms of future prospects. Even if PCH caught to Manipulations and it's shares are overvalued, the facts you mention are still valid. P/E and PEG are not only the tools to value a company. Net Cash flow to shareholders and Net Asset to S/H also can give some insight of share value. If your analysis come true for PCH it is definitely grow in medium & long term. But those all depend on the facts how will PCH managed and how does will it grasp the opportunities that will be created by economy and GOVT polocies.

Hope for Best

4PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:29 pm

NEWSTOCK


Stock Trader

As at 31/12/2009 their non-current interest bearing loan: Rs: 209,525,000
As at 31/12/2010: their non-current interest-bearing loan: Rs.34, 850, 000

Total current asset: Rs.1,631,193,000
Total current liabilities’: Rs.836,142,000

I noticed intelligent players used to say if you are long-term player buy at a discount and at a bargain price. He said do not chase stocks like short term and momentum players. They want to buy today and want to dump tomorrow to another person. They want to see double their stock within a week

Market weaknesses are opportunities he said.

5PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:31 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

This is none other than same MarketWatch in a different name

6PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:36 pm

sunandaf


Stock Trader

Hi NIZAM clown

7PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:39 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

Dont be misled by so called PEG ratio (which is not commonly used).

http://en.wikipedia.org/wiki/PEG_ratio No

8PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:43 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

Building inventory in an envirnment where stocks become absolute quickly is a real issue. This is what happned to Hayleys MGT and its CEO has outsted by its major shareholder - Hayleys as a result.

9PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:48 pm

NEWSTOCK


Stock Trader

Peter Lynch like this peg ratio. He knows how to use peg ratio to select five bagger, ten bagger and more than 20 baggers companies in advance.

Warrant buffet does not like debt.

10PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:50 pm

dulandesilva


Equity Analytic
Equity Analytic

Hi Nizam,

One important lesson you thought us all is to 'DO NOT FOLLOW THE CROWD AND HAVE CLEAR GOALS'.

Well we are sticking to it and nice to have you back in the camp.

Happy trading!

11PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:50 pm

Rocky

Rocky
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

salt wrote:Building inventory in an envirnment where stocks become absolute quickly is a real issue. This is what happned to Hayleys MGT and its CEO has outsted by its major shareholder - Hayleys as a result.

What you mean is "Building inventory in an envirnment where stocks become obsolete quickly is a real issue?



Last edited by hybrid_OS on Fri Feb 04, 2011 2:59 pm; edited 1 time in total

12PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:52 pm

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics

Just when we thought the show was over this pops up. Please stop, my ribs are hurting. I haven't laughed so much in ages.

13PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:55 pm

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

Can people stop posting this asinine garbage. people are tired of it. No matter how hard you or anyone else tries put marmalade on this the 'toast is charred'. get over it, and live with it.

14PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 2:58 pm

godswen

godswen
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mono wrote:Can people stop posting this asinine garbage. people are tired of it. No matter how hard you or anyone else tries put marmalade on this the 'toast is charred'. get over it, and live with it.

Mono ur avatar is to wide and some of ur texts cannot be seen!

15PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:00 pm

sunandaf


Stock Trader

Every detail you have mentioned here is acceptable.But the share is very much overvalued now(according to the Q3 report).I think we have to wait and study at least 2 or 3 quaters to see the performance of PCH and whether they on the track.this is not the time to take a RISK.

16PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:01 pm

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

godswen wrote:
mono wrote:Can people stop posting this asinine garbage. people are tired of it. No matter how hard you or anyone else tries put marmalade on this the 'toast is charred'. get over it, and live with it.

Mono ur avatar is to wide and some of ur texts cannot be seen!

really! i can see everything perfectly.

I guess i'll have to chop up domo-kun a bit Razz

17PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:02 pm

Rocky

Rocky
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mono wrote:Can people stop posting this asinine garbage. people are tired of it. No matter how hard you or anyone else tries put marmalade on this the 'toast is charred'. get over it, and live with it.

You must not have been to a BBQ for some time.
I like it well done.

18PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:06 pm

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

hybrid_OS wrote:
mono wrote:Can people stop posting this asinine garbage. people are tired of it. No matter how hard you or anyone else tries put marmalade on this the 'toast is charred'. get over it, and live with it.

You must not have been to a BBQ for some time.
I like it well done.

Eh!

I've never met someone who eats charred toast. I've also never been to a BBQ which has toast so i might be missing out on something special. :p

19PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:09 pm

sunandaf


Stock Trader

mono

this is just the biginning.

20PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:11 pm

godswen

godswen
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

sunandaf wrote:mono

this is just the biginning.

affraid

21PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:12 pm

Rocky

Rocky
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Eh!

I've never met someone who eats charred toast. I've also never been to a BBQ which has toast so i might be missing out on something special. :p[/quote]

I do my own recipes. When I go to a BBQ, I burn what I want, not the host!
I like 'em smoked well to get the taste of real wild life.

22PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:20 pm

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

One more thing. I'm not an accountant or a balance sheet person but it seems to me that the borrowings under current liabilities has gone up from 411Mn to 620Mn, between September 2010 & December 2010. can someone with more knowledge than me comment on this.

and the loan term loans were already set off by the last September report, so there is nothing new about it here

Sept financial report
http://www.cse.lk/cmt/upload_report_file/961_1288611054126.pdf

Dec financial report
http://www.cse.lk/cmt/upload_report_file/961_1296733192441.pdf

23PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:22 pm

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

hybrid_OS wrote:
I do my own recipes. When I go to a BBQ, I burn what I want, not the host!
I like 'em smoked well to get the taste of real wild life.

Real men like the taste of blood with their meat. Rolling Eyes

24PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:27 pm

dulandesilva


Equity Analytic
Equity Analytic

As we all know PCH was a loss making company and also had some major legal issues sometime back. A organization cannot jump out of those concerns in a quarter or two. It will take time. PCH quarterly report shows that they are on the right track since they are concern in reducing the Debt which has reduce the revenue and also the EPS.

I also agree that PCH overvalued at this stage when considering the existing financials but I dont think PCH being bankrupt soon. But if we consider the future earnings this is a bagger.

Different players use different valuation techniques. Therefore PCH has a long term value. We also have to bear in mind that Softlogic IPO will be in March.

Happy trading!!!

25PCH IS A MEDIUM AND LONG TERM STOCK Empty Re: PCH IS A MEDIUM AND LONG TERM STOCK Fri Feb 04, 2011 3:39 pm

Rocky

Rocky
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mono wrote:
hybrid_OS wrote:
I do my own recipes. When I go to a BBQ, I burn what I want, not the host!
I like 'em smoked well to get the taste of real wild life.

Real men like the taste of blood with their meat. Rolling Eyes


Yes! This hybrid is smart and generally does his hunting once each week and smokes em well and uses them for the rest of the week or so. He wears a "Crocodile Shirt" -

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