Comb, Samp, JKH in Foreign outflow!

peacockman · 1 Comb, Samp, JKH in Foreign outflow! Mon Jun 29, 2015 2:57 pm

peacockman

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Comb, Samp, JKH in Foreign outflow!

Foreign outflows continued to dominate the markets due to the current political instability in the country, with the Stock Market suffering a total net foreign outflow of Rs 2.8 billion (US$ 26.27 million) last week.

The Colombo Stock Market in the five weeks that have lapsed since 25 May, has suffered a net foreign outflow of Rs. 3.7 billion ($ 27.68 million).

This brings a total of Rs 36.6 billion ($ 273.49 million) worth of net foreign outflows that the markets have suffered in the two review periods.

If this follows, JKH may go down after 3rd July.
What are you thinking Guys?

VALUEPICK · 2 Re: Comb, Samp, JKH in Foreign outflow! Sat Jan 30, 2016 3:02 pm

VALUEPICK

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Now it has reached around Rs.150-154.

Yes. They had some outflow. It could be some reasons such as to raise funds to meet some commitments etc. When compare with total amount which hold foreign investors including foreign institutional investors in listed companies, outflow is very small amount. One has to calculate numbers of shares foreigners are keeping in many companies such as NEST, CINS, JKH,COMB,SPEN,SAMP,CINS,HNB,GRAN,TAFL and other various small, mid and large companies multiply by current market value, then you will realize.

In my opinion JKH has already factored to short term bad news. My lower target for JKH was around Rs.150 and it reached recently. I believe we should see some support at this level. Quarterly EPS has come down little bit when compare with corresponding last year. In some period quarterly earning can go up or down due to one event which will not happen again. Sometimes it may move toward 160 during next four weeks while having volatility.

Can companies maintain earnings almost every quarter and every year?

It is impossible. There are short term issues in global markets such as currency and interest rate fluctuations and some other factors as well. Long term investors will eye mid and long term shareholder value.

Value investors should do study on long term shareholder value creation, future earnings, warrants conversions and other factors before buying any shares. Growth investors will pay premium for stocks and they will pay even stocks having P/E ratio over 15. Speculators and momentum traders will go with trend.

Please do more research before buying and selling stocks. For example recently some sold some great winning stocks and they are buying short term momentum stocks. They will miss some of the biggest move in stocks.