LOLC.... Valuation...

laka · 1 LOLC.... Valuation... Sat Jun 11, 2011 9:03 pm

laka

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Most of our members have positive thinking on LOLC... But isn't it overvalued than other financial stocks such as PABC,SAMP,NDB

LOLC's last qtr EPS(With Non recurring) 1.26.... so annualised is 5.04...

PE should be 21.82

Wt do u think ??

Evil or Very Mad

invest-abc · 2 Re: LOLC.... Valuation... Sat Jun 11, 2011 11:07 pm

invest-abc

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laka wrote:Most of our members have positive thinking on LOLC... But isn't it overvalued than other financial stocks such as PABC,SAMP,NDB

LOLC's last qtr EPS(With Non recurring) 1.26.... so annualised is 5.04...

PE should be 21.82

Wt do u think ??

Well in simple terms I don't think you can compare LOLC with the shares you have mentioned. LOLC has ventured in to other areas of business other than the Finance sector. So I don't think it's right to compare LOLC with SAMP,NDB etc

kam2011 · 3 Re: LOLC.... Valuation... Sat Jun 11, 2011 11:18 pm

kam2011

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I too agree with invest-abc. LOLC should compare with CENTRAL FINANCE,LB finance,ALLIANCE FINANCE,CDB etc, I think LOLC's peformance has improved well. But in terms of PE best finnan company is CDB which has the lowest PE of 7.

Chinwi · 4 Re: LOLC.... Valuation... Sat Jun 11, 2011 11:58 pm

Chinwi

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LOLC is fortified with all the armory to have a PER over 20 at this moment of time.
It is a good example for a high PER stock due to its future potential.

Slstock · 5 Re: LOLC.... Valuation... Sun Jun 12, 2011 6:48 am

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laka wrote:Most of our members have positive thinking on LOLC... But isn't it overvalued than other financial stocks such as PABC,SAMP,NDB

LOLC's last qtr EPS(With Non recurring) 1.26.... so annualised is 5.04...

PE should be 21.82

Wt do u think ??

Some investors pay premium on growth shares. There are value shares and growth shares. LOLC is growth shares and is now in the diversified sector not only in Bank and Finance.

laka · 6 Re: LOLC.... Valuation... Sun Jun 12, 2011 11:47 am

laka

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Thanks for all replies...but

1) LOLC is still in BFI sector in cse (not yet transferred to diversified sec)
2)Under 20 PER(Rs110), no potential to go up in recent future....

optimistic · 7 Re: LOLC.... Valuation... Sun Jun 12, 2011 12:00 pm

optimistic

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Kam2011,

CDB can not be the best stock in the BFI sector. it may be undervalued and may have not caught the attention of the investors. but it certainly doesnt mean that its the best due to low PE ratio. In their earnings march quarter, they have reported other income which was a considerable portion of their earning last quarter. most likely this type of capital gains can not be expected from companies every quarter. what we should concentrate on is the earnings companies make by doing their core businesses.

by the way, it wasnt me who gave you the negative rep.

Slstock · 8 Re: LOLC.... Valuation... Sun Jun 12, 2011 3:08 pm

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laka wrote:Thanks for all replies...but

1) LOLC is still in BFI sector in cse (not yet transferred to diversified sec)
2)Under 20 PER(Rs110), no potential to go up in recent future....

It not the sector which this is in that matters but the investor sentiment and recognition. Right now the sentiments is not strong. LOLC will have its time again

1) Below is what said before which I am restating as it applies here

Some of us collected it at higher prices as we believe in it long term. When going for long term , short term price fluctuations are over looked. Much like putting fixed deposit and forgetting about it until it matures.

As you are also concerned about the best price and short term volatility it can go down a further if the market continues with this bear trend. But this dropping heavily futher is not justifiable. But then again this is CSE as it already broke several other resistances.

Also Watch out their hotel deal operator would be finalized soon. If the news hit positive and hard you know what to expect. Else here and there we can see smaller/short runs in the shorter term when over sold until this recovers

2) Also below will give you a better picture

http://www.thesundayleader.lk/2011/06/12/lolc-now-diversified-conglomerate/