Why ppl are trading on CITW

Equity Suda · 1 Why ppl are trading on CITW Fri Nov 20, 2015 10:22 am

Equity Suda

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Can't understand why ppl are trading on CITW. Right is useless when share trading at less than 10. But still ppl are going behind the share.....Are they expecting a manipulation?

Chinwi · 2 Re: Why ppl are trading on CITW Fri Nov 20, 2015 12:49 pm

Chinwi

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80% held by main shareholders including Vallibel One and most are linked or held with loans to Dhammika Pereras companies.

Sometimes he will subscribe 100% rights @ 10/- and take the ownership of this big nice valuable hotel.

Even no ownership change, inflow of 10/- per right (Rs. 770 million) will increase share value.

I don't think other shareholders will pay @ 10/- when the share is available @ 6.50 in the market.

So people suspect they issued 10/- rights with some sort of understanding with some party or investor, most probably KDDP.

Chinwi · 3 Re: Why ppl are trading on CITW Fri Nov 20, 2015 1:10 pm

Chinwi

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If that happens I think you can guess what in line next...

possibility to trigger the code;
mandatory offer @ 10/-
retailers can take it over 10 /- in the market

Everything will be clear with post right announcements

GameUP1030 · 4 Re: Why ppl are trading on CITW Fri Nov 20, 2015 1:42 pm

GameUP1030

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Chinwi wrote:If that happens I think you can guess what in line next...

possibility to trigger the code;
mandatory offer @ 10/-
retailers can take it over 10 /- in the market

Everything will be clear with post right announcements

stuck @SFL but need to move with this Embarassed

Joe007 · 5 Re: Why ppl are trading on CITW Fri Nov 20, 2015 3:36 pm

Joe007

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I believe that this is not a wise investment. Even after exercising the warrants their EPS will be negative but will be reduced heavily.
The total debt is very high specially interest bearing loan is around Rs 1926m. They only get maximum of Rs 778m from if all warrants exercised.

This is a good opportunity to buy a large stake or takeover only.

If all the warrants exercised, the net asset value will be increased to around Rs 8.34 from Rs 7.51 with negative EPS.

In this case there are other companies better than CITW such as GHLL,KHL, AHUN, AHPL.........

If anyone is holding the shares, this is the right time to get rid of them and you can get them very cheaper than now after the December report is published.

To me it is completely waste of investment.
This is my opinion only.