Undervalued Stocks

Teller wrote:Dont do the valuation based on the Net asset value for a share. There is a formula along with cashfolw.  Thats scientific formula says nearly 80% companies are over value in CSE

4Corners wrote:ASPH
HAYL
AAF
ABL
PHAR

Kaish86 wrote:Dont go for banking shares. Their books doesn't reflect actual npa status. Expected low interest rate margins will shrink their profit. Govt asking banks to give moratarium on tourism and sme  resulting in cash being trapped. To adhere minimum capital requirements they are mandatorily required to raise capital in 2020. They will show inflated share prices to raise capital. For me future outlook negative for bank shares

Kaish86 wrote:Dont go for banking shares. Their books doesn't reflect actual npa status. Expected low interest rate margins will shrink their profit. Govt asking banks to give moratarium on tourism and sme  resulting in cash being trapped. To adhere minimum capital requirements they are mandatorily required to raise capital in 2020. They will show inflated share prices to raise capital. For me future outlook negative for bank shares

Kaish86 wrote:Banks mentioned here are yet to raise their minimum capital. Look at their balance sheet. More share issue means eps and share price will go down. The way bank raise rates and marketing for deposit indicates how bad they need deposit. But they cant raise rates on loans. Interst margins of banks will fall further. Their may be a temporary hike. But definitely its not the sustainable price

NANDANA2012 wrote:

Teller wrote:Dont do the valuation based on the Net asset value for a share. There is a formula along with cashfolw.  Thats scientific formula says nearly 80% companies are over value in CSE

Yes, I dont use only Net Assets, but if a share price is below 10 times Price Earnings and also that multiplication is below its Net assets value, I consider that share is undervalued..(Actually many Other share marjets have a PE 15 or above, whereas ours is still at PE 11) there are many other futuristic scenarios also. BUT Net Assets combined with Earnings into 10 is the best, I guess.

kasun_gimhana wrote:@KavinduTM I think shares are overvalued and stay away from the market. I got my money and gave loan to someone with 4% interest per month with a land mortgage. it will give more than 48% annualised return. I listen to teller and sold stock holdings it is good but I listen to teller and did not buy debentures issued by soft logic capital, That was my mistake. then considerable amount put in 15% fixed deposit. Rest of the money plan to buy virtual gold or invest in NDB wealth fund. (I think there will be huge inflation, protect your net asset). I have a loan to finance so I need fixed return 90% my investments are financed by a loan.

Promoney wrote:How can a market with a PER of 10.8 and PBV of 1.1 be an overvalued market. Well diversified companies with a EPS over 15% are trading at less than 60% of the net assest value. With a stable Gov in place, its only a matter of time till large foreign funds eye Sri Lanka.

roshan1039 wrote:

Promoney wrote:How can a market with a PER of 10.8 and PBV of 1.1 be an overvalued market. Well diversified companies with a EPS over 15% are trading at less than 60% of the net assest value. With a stable Gov in place, its only a matter of time till large foreign funds eye Sri Lanka.

Don't trust these jokers they are from UNP
At the moment market is very attractive
we can see within next 6 months where will this go
That time they will cry
In 2020 ASI will pass 7000

Promoney wrote:How can a market with a PER of 10.8 and PBV of 1.1 be an overvalued market. Well diversified companies with a EPS over 15% are trading at less than 60% of the net assest value. With a stable Gov in place, its only a matter of time till large foreign funds eye Sri Lanka.

subash81 wrote:AEL
LIOC 
CIND 
LMF 
TAFL

100Bill wrote:@subash81

I would like to add MELS.N in your list..

subash81 wrote:

100Bill wrote:@subash81

I would like to add MELS.N in your list..

Ok