RICH why is it going down?

SpaceCab · 1 RICH why is it going down? Thu Jan 27, 2011 12:19 pm

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Hi Guys,

Why is RICH going down, is it they didn't perform well in this Q?

optimistic · 2 Re: RICH why is it going down? Thu Jan 27, 2011 12:40 pm

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I'm not very sure of this. but i think that is due to profit taking. if you look at the order book, there are huge chunks of sell orders to be cleared for an upward movement to take place.

mono · 3 Re: RICH why is it going down? Thu Jan 27, 2011 12:46 pm

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just hold on machang. this is worth 20

Monster · 4 Re: RICH why is it going down? Thu Jan 27, 2011 12:50 pm

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One of the undervalued stock in the sector. Better to hold.

Slstock · 5 Re: RICH why is it going down? Thu Jan 27, 2011 1:03 pm

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SpaceCab wrote:Hi Guys,

Why is RICH going down, is it they didn't perform well in this Q?

Some profit taking, collection and consolidation going on. Hold on. RICH hold KGAL and Namu
to start with. RICH would benefit well from them.

SilverHawk · 6 Re: RICH why is it going down? Thu Jan 27, 2011 1:09 pm

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In what basis you have calculated the RICH value as 20/=
Can you share that with us? Smile

mono · 7 Re: RICH why is it going down? Thu Jan 27, 2011 1:42 pm

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They earned 434 million last quarter. that should give then an EPS of around .24 for the quarter. but since then domestic consumption has gone up & rubber & palm oil prices have gone up by as much as 50%. so they can possibly post up to 500 million in profits this quarter. but in any case EPS for the quarter should be around .26 so if we were to annualize they can post about 1 rupee in earnings. But they are also expanding. the brokerage should fetch about extra 200 mil per annum. they also got 1bn loan to expand their retail business. so expect them to grow by about 20-30% annually.

that means they should be worth about 20 rupee consider they are conglomerate and stable.

spica · 8 Re: RICH why is it going down? Thu Jan 27, 2011 1:52 pm

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mono wrote:They earned 434 million last quarter. that should give then an EPS of around .24 for the quarter. but since then domestic consumption has gone up & rubber & palm oil prices have gone up by as much as 50%. so they can possibly post up to 500 million in profits this quarter. but in any case EPS for the quarter should be around .26 so if we were to annualize they can post about 1 rupee in earnings. But they are also expanding. the brokerage should fetch about extra 200 mil per annum. they also got 1bn loan to expand their retail business. so expect them to grow by about 20-30% annually.

that means they should be worth about 20 rupee consider they are conglomerate and stable.

Thanks for this insight mono.

SilverHawk · 9 Re: RICH why is it going down? Thu Jan 27, 2011 5:50 pm

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@mono

When we look there NP, there are some seasonal variation. Some quarter they are doing well. Especially in March & December ending quarters.

In 2010
Q1: 330,703
Q2: 270,499
Q3: 434,245
Avg per last 3 quarters: 345,149

If Q4 is according to above AVG, annualized earning will be: 1,380,596
Hence EPS: 0.71/= and price can be 0.71 x 20 = 14.20

If they produced 500 million NP in Q4
EPS would be 0.79 and price can be 0.71 x 20 = 15.90

Yes. As you mentioned there is a better chance, that they could generate over 500 million NP in Q4.
Probably price can up to 16/= + with Q4 results, but not sure whether or not it will hit 20/= price level.

mono · 10 Re: RICH why is it going down? Thu Jan 27, 2011 6:22 pm

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SilverHawk wrote:@mono

When we look there NP, there are some seasonal variation. Some quarter they are doing well. Especially in March & December ending quarters.

In 2010
Q1: 330,703
Q2: 270,499
Q3: 434,245
Avg per last 3 quarters: 345,149

If Q4 is according to above AVG, annualized earning will be: 1,380,596
Hence EPS: 0.71/= and price can be 0.71 x 20 = 14.20

If they produced 500 million NP in Q4
EPS would be 0.79 and price can be 0.71 x 20 = 15.90

Yes. As you mentioned there is a better chance, that they could generate over 500 million NP in Q4.
Probably price can up to 16/= + with Q4 results, but not sure whether or not it will hit 20/= price level.

if you put weight on past earning it's true that this is 15-16 rupee share. but this market rarely does that. the better option in my opinion is to look at future earnings. look at BFL. my basic evaluation was to take the last quarter 434 add 500 & 500-520 for the next two quarters given the strength of rubber + palm oil and other demand driven factors. add 400 for the july quarter weather affects rubber in this quarter & there is a consumption slowdown as well. add 50 for the brokerage since this will be their first year in operation.

so the gives 434 + 500 + 500 + 400 + 50 = 1.88 Bn eps roughly 1 rs. if the earning for this quarter hits 500 million this quarter i think this earning is definitely on the cards. Of course all of this can also go terribly wrong. and they might earn less than my forecasted amount. Embarassed

econ · 11 Re: RICH why is it going down? Thu Jan 27, 2011 6:35 pm

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We do not have to fear about #RICH.. it is one of a best blue chip cse have..still 5,6 rupees less than predicted price level.. so i think it is just a matter of time break 15 and then 18..

mono · 12 Re: RICH why is it going down? Thu Jan 27, 2011 6:37 pm

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econ wrote:We do not have to fear about #RICH.. it is one of a best blue chip cse have..still 5,6 rupees less than predicted price level.. so i think it is just a matter of time break 15 and then 18..

welcome fellow refugee Smile

Gaja · 13 Re: RICH why is it going down? Fri Jan 28, 2011 2:53 pm

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mono wrote:

econ wrote:We do not have to fear about #RICH.. it is one of a best blue chip cse have..still 5,6 rupees less than predicted price level.. so i think it is just a matter of time break 15 and then 18..

welcome fellow refugee

Any idea as to when they will release the December Results

Chabbi · 14 when goen the release the results ?? Fri Jan 28, 2011 5:14 pm

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when goen the release the results ??

mono · 15 Re: RICH why is it going down? Fri Jan 28, 2011 5:16 pm

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Chabbi wrote:when goen the release the results ??

my broker said next week, but I'm skeptical

Steve · 16 Re: RICH why is it going down? Fri Jan 28, 2011 6:58 pm

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I'm guessing RICH will show great results considering their exposure to Plantations (Tea and especially Rubber prices have been fantastic) and retail business (super markets). Besides it's very attractive because it is so liquid.
There has to be some profit-taking as it has gained close to 30% in a very short period....

ControlFreak · 17 #RICH:Patience is an Asset Sat Jan 29, 2011 10:48 am

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RICH should not delay their accounts.
Hold on with your shares till "Pol kadana Welawa" time arrives.

By the COCO>N is doing very well. Hope the accounts will supplement the climb in share price.
3rd qtr. is very tricky as I do not know whether the family (Rather stingy) owns any estates. If thats the case, their profits should be good.

CF
Rolling Eyes

Gaja · 18 Re: RICH why is it going down? Sun Jan 30, 2011 12:43 am

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I Think price is coming down because of Profit taking if i am not mistaken still some people hold the shares they bought it around the 140 level before the the split so for them after dividend they have huge profit and when they saw the demand they might dispose it

I am holding few shares with the positive mind and also expect their Quarterly Results hope they will release during this week ( Week start at January 31st )

milanka · 19 Re: RICH why is it going down? Wed Apr 27, 2011 6:00 pm

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After very long time RICH droped and touched 13.40 today and recovered to 13.60

What would be the expected price level ? . Last time rally started before the Financials. It moved up to 15.30 during early Feb. This time we also consider the improved income from thair plantations.

What would be the expected price level this time ?

chamith · 20 Re: RICH why is it going down? Wed Apr 27, 2011 7:59 pm

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hey,,,,

There is nothing to worry. Its just some1 selling to exit. When i saw the huge dumping i also was bit worried, but if you look at the transaction you can clearly see what has happen;

RICH why is it going down? Rich10

AS of today total buying ; 1,288,900
total selling ; 339,400

Therefore we can clearly see a buying pressure today, therefore hopefully prices will not fall anymore... This share worth at least 18 LKR according to my valuation...

ShareShares · 21 Re: RICH why is it going down? Wed Apr 27, 2011 9:21 pm

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I the heading is changed to why it is going up RICH might go up, actually buying pressure is more.

chamith · 22 Re: RICH why is it going down? Wed Apr 27, 2011 11:08 pm

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yes, it was just some1 trying to sell his shares off early in the morning.

wallstreetguy · 23 Re: RICH why is it going down? Thu Apr 28, 2011 4:02 pm

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My broker said, RICH is a dull share. Its not moving much as expected it seems?

Is he right? or was it a misleading comment he gave me?

In a way how i understand the business, they seem to be good. Rubber profit and other diversified business.

milanka · 24 Re: RICH why is it going down? Thu Apr 28, 2011 9:41 pm

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wallstreetguy wrote:My broker said, RICH is a dull share. Its not moving much as expected it seems?

Is he right? or was it a misleading comment he gave me?

In a way how i understand the business, they seem to be good. Rubber profit and other diversified business.

Some brokers only look at the amount he gets from the trade. I do not know about your advisor.

RICH is a good share.Chairman Mr. Yaddihege comment about achieving Rs. 2.5 Billion as profit for the year .

We discussed this in this forum just after Last Qtr results. Pl. do a search. I do not have the link to that post.

wallstreetguy · 25 Re: RICH why is it going down? Thu Apr 28, 2011 10:09 pm

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milanka wrote:

wallstreetguy wrote:My broker said, RICH is a dull share. Its not moving much as expected it seems?

Is he right? or was it a misleading comment he gave me?

In a way how i understand the business, they seem to be good. Rubber profit and other diversified business.

Some brokers only look at the amount he gets from the trade. I do not know about your advisor.

RICH is a good share.Chairman Mr. Yaddihege comment about achieving Rs. 2.5 Billion as profit for the year .

We discussed this in this forum just after Last Qtr results. Pl. do a search. I do not have the link to that post.

Thanks. Appreciate it
yeah my instincts did say its a good share. i was being bullish today. I asked his opinion about RICH, his answer was, it doesnt move as expected. But I think as a long term investor, its a good share too. i did go thru their accounts. And when you buy shares, I believe you should think it as your own business and look at in every aspect.

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RICH why is it going down?

1 RICH why is it going down? Thu Jan 27, 2011 12:19 pm

SpaceCab

2 Re: RICH why is it going down? Thu Jan 27, 2011 12:40 pm

optimistic

3 Re: RICH why is it going down? Thu Jan 27, 2011 12:46 pm

mono

4 Re: RICH why is it going down? Thu Jan 27, 2011 12:50 pm

Monster

5 Re: RICH why is it going down? Thu Jan 27, 2011 1:03 pm

Slstock

6 Re: RICH why is it going down? Thu Jan 27, 2011 1:09 pm

SilverHawk

7 Re: RICH why is it going down? Thu Jan 27, 2011 1:42 pm

mono

8 Re: RICH why is it going down? Thu Jan 27, 2011 1:52 pm

spica

9 Re: RICH why is it going down? Thu Jan 27, 2011 5:50 pm

SilverHawk

10 Re: RICH why is it going down? Thu Jan 27, 2011 6:22 pm

mono

11 Re: RICH why is it going down? Thu Jan 27, 2011 6:35 pm

econ

12 Re: RICH why is it going down? Thu Jan 27, 2011 6:37 pm

mono

13 Re: RICH why is it going down? Fri Jan 28, 2011 2:53 pm

Gaja

14 when goen the release the results ?? Fri Jan 28, 2011 5:14 pm

Chabbi

15 Re: RICH why is it going down? Fri Jan 28, 2011 5:16 pm

mono

16 Re: RICH why is it going down? Fri Jan 28, 2011 6:58 pm

Steve

17 #RICH:Patience is an Asset Sat Jan 29, 2011 10:48 am

ControlFreak

18 Re: RICH why is it going down? Sun Jan 30, 2011 12:43 am

Gaja

19 Re: RICH why is it going down? Wed Apr 27, 2011 6:00 pm

milanka

20 Re: RICH why is it going down? Wed Apr 27, 2011 7:59 pm

chamith

21 Re: RICH why is it going down? Wed Apr 27, 2011 9:21 pm

ShareShares

22 Re: RICH why is it going down? Wed Apr 27, 2011 11:08 pm

chamith

23 Re: RICH why is it going down? Thu Apr 28, 2011 4:02 pm

wallstreetguy

24 Re: RICH why is it going down? Thu Apr 28, 2011 9:41 pm

milanka

25 Re: RICH why is it going down? Thu Apr 28, 2011 10:09 pm

wallstreetguy

26 Re: RICH why is it going down?

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