LDEV Aftermath?

RichDad · 1 LDEV Aftermath? Tue Jun 14, 2011 10:31 pm

RichDad

Manager - Equity Analytics

Posts : 184
Equity Stars : 5236
Reputation : 42
Join date : 2011-05-27
Location : Colombo

Dear Members, Do you have any idea of LDEV? Any reason for this post right issue behavior? Any news?
Thank you

Last edited by milanka on Wed Jun 15, 2011 11:00 pm; edited 1 time in total (Reason for editing : Removed .... from heading)

wgsaman · 2 Re: LDEV Aftermath? Wed Jun 15, 2011 8:12 am

wgsaman

Senior Manager - Equity Analytics

Posts : 348
Equity Stars : 5431
Reputation : 48
Join date : 2011-05-20
Age : 33

i have no idea

Chinwi · 3 Re: LDEV Aftermath? Wed Jun 15, 2011 9:19 am

Chinwi

Associate Director - Equity Analytics

Posts : 3097
Equity Stars : 9155
Reputation : 418
Join date : 2010-06-08
Location : Asia

Why ? This is what we expected . they gave many rights (15 ?) for 1 we had. Now oversupply of shares .
The winners were who sold them @ 80s before right issue now they can buy 4 shares for each one they sold.

Shareholders paid 25/- for a right. Now you can buy @ 21/- , good if you can buy and hold.

I think it is bargain to buy,
Not like a share traded in the market for high and you buy low where the money goes to traders.

Here, money (25/-) is with the company and we buy it at low.

RichDad · 4 Re: LDEV Aftermath? Wed Jun 15, 2011 3:16 pm

RichDad

Manager - Equity Analytics

Posts : 184
Equity Stars : 5236
Reputation : 42
Join date : 2011-05-27
Location : Colombo

Thanks a lot Chinwi for the explanation. I held 1000 LDEV before the right issue. And paid 25/- for 8800 shares.

I have made a wrong decision!

Sampath.Jayawardhana · 5 Re: LDEV Aftermath? Wed Jun 15, 2011 3:19 pm

Sampath.Jayawardhana

Stock Analytic

Posts : 15
Equity Stars : 4965
Reputation : -1
Join date : 2011-05-01

This company is at a loss. If u don't believe me, call them and ask. I got rid of my lot early.

Sampath.Jayawardhana · 6 Re: LDEV Aftermath? Wed Jun 15, 2011 3:21 pm

Sampath.Jayawardhana

Stock Analytic

Posts : 15
Equity Stars : 4965
Reputation : -1
Join date : 2011-05-01

most who had rights have not subscribed.

innam · 7 Re: LDEV Aftermath? Wed Jun 15, 2011 3:31 pm

innam

Manager - Equity Analytics

Posts : 215
Equity Stars : 5758
Reputation : 130
Join date : 2010-07-02
Location : Bacon county, GA

Chinwi has given a good explanation but here is the other side.

LDEV is run by LCEY/CFLB group who have a nasty habit of continously going for rights issues within their subsidiaries (eg MARA twice, LITE twice, MULL, SIGV) as well as using the subsidiaries as funding sources (eg loans from KOTA).

With the LDEV rights issue, these jokers tried to raise 2.5 BILLION as rights when the market cap of LDEV was only 200 MILLION. http://www.cse.lk/cmt/uploadAnnounceFiles/5851299655983_446.pdf
the reason given was to takeover a magic tea factory from a sister company and the usual magic investments in leisure and hydro.

The jokers couldn't "manage" the rights properly and at the end of trading rights seller were trying to unload at 10 cents with absolutely no buyers around.

What's happened is that for the first time since the war ended a rights issue FAILED and seems to be undersubscribed. Remember these jokers were trying to sell 103.5 million shares yet the announcement says that

"Please note that 53,100,000 Ordinary Shares of the Company were listed on 7th June 2011, pursuant to a 15:1 Rights Issue"

so the rights was only 50% subscribed....which means that either LCEY didn't subscribe for some portion of the rights OR all of the retailers stayed away.

If LCEY didn't fully subscribe there are serious concerns that need to be raised (we'll only find out for sure when the June quarteries are filed).

As Chinwi says the 25 is with the company BUT it does seem that the rights issue failed so they only end up with the magic tea plantation and the magic leisure and hydro project plans are kaput.

spider · 8 Re: LDEV Aftermath? Wed Jun 15, 2011 11:26 pm

spider

Equity Analytic

Posts : 20
Equity Stars : 4934
Reputation : 0
Join date : 2011-06-14

Thanks Sampath.Jayawardhana and innam.....
Now I feel what to do for LDEV shares....
Since the Company is not functioning well better to sell all even for lost Crying or Very sad

Chinwi · 9 Re: LDEV Aftermath? Thu Jun 16, 2011 2:07 am

Chinwi

Associate Director - Equity Analytics

Posts : 3097
Equity Stars : 9155
Reputation : 418
Join date : 2010-06-08
Location : Asia

innam wrote:Chinwi has given a good explanation but here is the other side.

LDEV is run by LCEY/CFLB group who have a nasty habit of continously going for rights issues within their subsidiaries (eg MARA twice, LITE twice, MULL, SIGV) as well as using the subsidiaries as funding sources (eg loans from KOTA).

With the LDEV rights issue, these jokers tried to raise 2.5 BILLION as rights when the market cap of LDEV was only 200 MILLION. http://www.cse.lk/cmt/uploadAnnounceFiles/5851299655983_446.pdf
the reason given was to takeover a magic tea factory from a sister company and the usual magic investments in leisure and hydro.

The jokers couldn't "manage" the rights properly and at the end of trading rights seller were trying to unload at 10 cents with absolutely no buyers around.

What's happened is that for the first time since the war ended a rights issue FAILED and seems to be undersubscribed. Remember these jokers were trying to sell 103.5 million shares yet the announcement says that
"Please note that 53,100,000 Ordinary Shares of the Company were listed on 7th June 2011, pursuant to a 15:1 Rights Issue"
so the rights was only 50% subscribed....which means that either LCEY didn't subscribe for some portion of the rights OR all of the retailers stayed away.
If LCEY didn't fully subscribe there are serious concerns that need to be raised (we'll only find out for sure when the June quarteries are filed).

As Chinwi says the 25 is with the company BUT it does seem that the rights issue failed so they only end up with the magic tea plantation and the magic leisure and hydro project plans are kaput.

Thanks innam.

I am sorry I did not check it. Never thought they did not subscribed for the total rights others left. From the date the "reputed people ??" announced 15 for 1, I assumed that they had clear plans to pay for all the rights. Any fool should know retailers w'not pay for them to buy their own lands.
Now they have proved that they are real jokers as you said.

In the announcement "Please note that 53,100,000 Ordinary Shares of the Company were listed on 7th June 2011, pursuant to a 15:1 Rights Issue" nothing mentioned about it and misleading.

@ ImeshA,
"I held 1000 LDEV before the right issue. And paid 25/- for 8800 shares."

I m very sorry about it. I think we discussed it before the issue. Innam made it very clear from the beginning. I also had 7500 rights to pay and I left them for LCEY , now I know they also did not like them.

ImeshA, as they have got 1.3 billion ( many times than market cap of LDEV) they may take some steps to make it profitable. Their estimate for acquiring Plantations was 1.2 billion. Hence, no hydro & leisure as innam said. At the moment LDEV NAVPS is 21 Rupees after deducting 83 million c/f loss.

BTW, I cannot believe that they will abandon the functioning of the company, at least for the sake of their reputation.

RichDad · 10 Re: LDEV Aftermath? Thu Jun 16, 2011 12:46 pm

RichDad

Manager - Equity Analytics

Posts : 184
Equity Stars : 5236
Reputation : 42
Join date : 2011-05-27
Location : Colombo

innam many thanks for the detailed explanation. I really value your input and reading through your comment was a good learning even about their company structure and about the stupid management. Thank you.

Yes Chinwi I wish I were a member of this forum in the times I bought LDEV. I'm planning to hold my 9800 as the NAV/P give me some hope. And hope the stupidos won't do any harm to their own reputation anymore.
Anyway thanks loads for your input, I do appreciate it.

Good luck!