Undervalued shares?

Hi Guys,

I have been observing the market and was able to identify an undervalued share.
OSEA is a share which is currently traded below its NAV. A company which has some of its Buildings in prime locations in Colombo has untapped potential. Further, given there being rumors that the company is awaiting massive cash inflows due to certain transaction in the pipeline.

Also, i have noticed that CSEC is a good buy because of the value derived due to the performance of CFVF, which is another Diamond of a share. The capital gains it will realize due to CFVF is massive in numbers. Expecting a thumping dividend from both the Parent CSEC and CFVF. Further, backing of the major shareholder, Janashakthi insurance, is another positive aspect.

What do you guys think? Experts and other opinions are appreciated.

Ohhh happy to see a wolf roaming the CSE.

Anyways you have some good solid research done on some good fundamental stocks which have been very viral around the forum these days.

A thumping dividend from CSEC may be questionable. However i have all my bets on CFVF for a high dividend yield and an amazing capital gain.

I assume with Janashakthi buying Bartleet finance, CFVF may have alot of indirect benefits since as you have mentioned Janashakthi is backing CFVF.

Make the best out of these valuable stocks.
Happy Trading!!!

The Banda wrote:Ohhh happy to see a wolf roaming the CSE.

Anyways you have some good solid research done on some good fundamental stocks which have been very viral around the forum these days.

A thumping dividend from CSEC may be questionable. However i have all my bets on CFVF for a high dividend yield and an amazing capital gain.

I assume with Janashakthi buying Bartleet finance, CFVF may have alot of indirect benefits since as you have mentioned Janashakthi is backing CFVF.

Make the best out of these valuable stocks.
Happy Trading!!!

All the indirect benefits you have mentioned will finally have an impact on the parent, CSEC as well. Even though, parent is only a holding company, majority of the profits of CFVF will flow to the parent as per accounting treatments.

Also, OSEA has enormous potential which has not given due notice by the investors. Soon enough it will show its true potential

In the present market condition
most shares are appreciated.
Only few trading below NAV.
A Stock to trading below NAV has to have a reason.
Thats why they are not moving.

We have think of growth stocks.
future winners in this current condition.
what stocks will benefit from present low interest rates, bonds , treasury bills, low oil prices , low cost of production,
increase demands etc.

we have to speculate what stocks will have good september
quarter reports.
That s the key to find undervalued stocks.
Other thing is follow the trend.

Wolf_of_Wallstreet wrote:Hi Guys,

I have been observing the market and was able to identify an undervalued share.
OSEA is a share which is currently traded below its NAV. A company which has some of its Buildings in prime locations in Colombo has untapped potential. Further, given there being rumors that the company is awaiting massive cash inflows due to certain transaction in the pipeline.

Also, i have noticed that CSEC is a good buy because of the value derived due to the performance of CFVF, which is another Diamond of a share. The capital gains it will realize due to CFVF is massive in numbers. Expecting a thumping dividend from both the Parent CSEC and CFVF. Further, backing of the major shareholder, Janashakthi insurance, is another positive aspect.

What do you guys think? Experts and other opinions are appreciated.

The only road block for OSEA is this governments policy on restraining Foreign Ownership. This is affecting the March forward. If the dual citizenship works, which i am not aware of the latest changes, then we will see lots of Canadian, UK and Paris based Tamils will pitch this sector. Thats my thinking.. and if a Government change occurs.. this will be great news for sure.

i dont know about many shares....

HHL
OSEA
LIOC
TJL
VPEL

SHARK,
"governments policy on restraining Foreign Ownership has some impact on their projects like Havelock city." Is that you are trying to say. I wanna clarify further.

Yes ...... I dont know whether there will be change of Hearts after the Elections.

Shark,
You have mentioned VPEL on your list. Can you explain why you selected it ?

Keep an eye on SDB after the X-right. X-right share will fall a little bit and from the present level and pick up. You will have a good return on your investment. You need to be careful about the overall market sentiments too. SDB is yet to announce the dates.

ruwa wrote:Shark,
You have mentioned VPEL on your list. Can you explain why you selected it ?

As per my simple valuations can go towards 7+ with LT 10-9Rs.
Good colection or Entry would be 6.10-6Rs

Shark,
If you dont mind can you please elaborate your simple valuations for the benefit of all forum members

EPS .80 Annualised as per AP Broker. current PE 7.7 which is Lowest excluding LIOC in the same sector. Dividend Yield is better @8% CMP 6.10-6.00

SHARK aka TAH wrote:EPS .80 Annualised as per AP Broker. current PE 7.7 which is Lowest excluding LIOC in the same sector. Dividend Yield is better @8% CMP 6.10-6.00

Yes. Good pick based on the numbers.

But for this stock there not as much interest. I also don't know the reason.

Surely a good stock.

RPPA wrote:

SHARK aka TAH wrote:EPS .80 Annualised as per AP Broker. current PE 7.7 which is Lowest excluding LIOC in the same sector. Dividend Yield is better @8% CMP 6.10-6.00

Yes. Good pick based on the numbers.

But for this stock there not as much interest. I also don't know the reason.

Surely a good stock.

I think, main problem is people are losing their interest when there is too much manipulation occurs.
even last year they gave good profits and went 6.80 if I am remember well. but end up again @ 5.90-06.00 just before the Div. and after div, it picked up again to 6.80.

Even I too trust in this stock. I purchased around 500,000 shares of it and have locked it up for the future. I want to slowly accumulate funds and make it 1 million and then forget about it for a couple of years. The CEB budget slash of 99% coupled with the new projects and rising demand for energy, has me feeling quite bullish for this stock .

Look @ VPEL ASIY... Paying Good Dividends...

the problem with ASIY the selling... why cant they finalise a deal with private party to divest, instead selling in the Market

GroundedKestrel wrote:Even I too trust in this stock. I purchased around 500,000 shares of it and have locked it up for the future. I want to slowly accumulate funds and make it 1 million and then forget about it for a couple of years. The CEB budget slash of 99% coupled with the new projects and rising demand for energy, has me feeling quite bullish for this stock .

Agreed GK

SHARK aka TAH wrote:

GroundedKestrel wrote:Even I too trust in this stock. I purchased around 500,000 shares of it and have locked it up for the future. I want to slowly accumulate funds and make it 1 million and then forget about it for a couple of years. The CEB budget slash of 99% coupled with the new projects and rising demand for energy, has me feeling quite bullish for this stock .

Agreed GK

1M shares on VPEL only????,
I think you better go and work there as a director  or help them build another power generation projects.
My view is, no point invest your RS 6million rupees on a share like VPEL only.
Just buy VPEL close to dividend then you get capital + div.

there are better shares than VPEL in the market. If you had bought LIOC @ 45, today you have div= 1lakh + capital gain 1 lakh? and still moving up.

Having 60 million in hand, if you aim for lively stocks. not dead ones. you can make the money double easily
dont agree with me, something to think about.

SLEF is powerful know

Another 15 Minutes to go for the Opening Bell

SHARK aka TAH wrote:SLEF is powerful know

we need to make it more and more powerful and strong. because this is the only place for average investors to get elakiri information from.
We will work as a team to achieve common objective of sharing information with harmony. but if some one see or feel something, please raise it so we can address the issues.

Octopus wrote:

SHARK aka TAH wrote:

GroundedKestrel wrote:Even I too trust in this stock. I purchased around 500,000 shares of it and have locked it up for the future. I want to slowly accumulate funds and make it 1 million and then forget about it for a couple of years. The CEB budget slash of 99% coupled with the new projects and rising demand for energy, has me feeling quite bullish for this stock .

Agreed GK

1M shares on VPEL only????,
I think you better go and work there as a director  or help them build another power generation projects.
My view is, no point invest your RS 6million rupees on a share like VPEL only.
Just buy VPEL close to dividend then you get capital + div.

there are better shares than VPEL in the market. If you had bought LIOC @ 45, today you have div= 1lakh + capital gain 1 lakh? and still moving up.

Having 60 million in hand, if you aim for lively stocks. not dead ones. you can make the money double easily
dont agree with me, something to think about.

Agreed with Octopus, there is a simple saying 'Don't put all your eggs in one basket'. I don't know whether this is only one of your investments. Do you want to enter GroundedKestrel name in top 20 shareholders??????

Thank you everyone for your genuine feedback. I want to clarify a few things though, I have only 500,000 shares thus far so hardly 60 lakhs. As a practice, I like penny stocks. While LIOC might be good, everyone is going after it and sooner or later the bubble will burst or the share might not live up to expectations. I keep away from shares where the spot light is shone.

Fairtrade: With regard to the capital market, yes this is it. I have diversified the rest into agriculture and rural land.

I don't think that VPEL is dead Octopus. However did you come into that conclusion? I like concentration over diversification to be honest. It is high risk, I agree but the rewards are as lucrative. I like shares like CFLB, VONE, BFL (those days) etc.

every ones strategy is different and depend on many things. You have diversified.Good.
I am more like a trader.
If you have more money,The bitter truth is you are the boss (If you aim for penny stocks), dirty to say the word but You can manipulate. You are empowered. because you have lot of money.

Having cash 6 mil in hand and waiting for your opportunity is your strategy.
on the other hand, Mine is attack. Being a trader and a long time investor is totally different things.

Good luck on your VPEL

Also, I think practically that DP has the money and capabilities to take this into a whole new level. Acquisition of Free Lanka Power? Construction of a new mini hydropower plant together with a Swedish company? expansion into other renewable sources of power (currently testing wind in Balangoda) coupled with the world and govts becoming more environmentally aware, energy hub policies, carbon credits coming into play, growing electricity demand, favourable political climate, having permits already.

I am not playing the short game. Trying to thrive on each and every bull run. I am in it for the long haul

Need I say more?