Re-entry #PCH

Sometime back I had around 200k PCH which I had collected below the IPO price and sold around Rs. 15. PCH is not a bad share but at that time felt Rs.15 was a fair value to exit. But now with the latest developments (press releases on growth plans and future stategy etc.) what would be a good price to re-enter????? (last Qtr EPS - 0.22 / Annualised EPS - 0.88). Therefore, if I enter at Rs. 20 that would be at a PE of 22. (I feel PE of 22 is not that bad for a IT stock which is in a growth phase) ...Your valuable ideas pls.....

Go plz check what PCH does than look at the sector PCH is put by SEC! Its like saying CFVF need a PE of over 20 because it is bank!
Also here is the Bright future of PCH real operations!
http://www.ft.lk/2011/02/15/consumers%E2%80%99-purchases-of-computers-mobile-phones-to-dip-newer-gadgets-to-soar/

PCH is a retail company selling computers. That is their core business. Although they're starting up a small software division etc that is not what affects their bottom line. So it doesn't deserve a high PE ratio.
Just to give you a fact, most large companies I know for example buy 200+ lot PCs directly from USA etc at once. They don't go through local retail companies. Because when they buy a standard machine configuration like that their IT department can just replace after sales service. Just replace a faulty component from a similar one and fix it. So they don't have to go thorough waiting for inconsistent and unreliable after sales services. Only companies needing a few computers buy them from 100s of local retailers. Even individuals import directly now. Same as in vehicles.

Successful companies need to evolve with time. It is the responsibility of the management. Singer is not selling sewing machines alone, though it was their core business. LOLC is not only doing leasing, though it was their core business until middle of last decade. Softlogic is not only with IT related areas though it was their core business.

If someone believes that PCH will evolve themselves, move ahead of times, venture into areas of higher yield while maximising their core competencies, then it is his calculated risk, for which he may get higher return.

For a growing company at the early stages, the PE will be misleading. So if someone wants to take a higher risk and bet on the future of PCH, why not? Other investors better wait for at least 2 more quarters to be sure whether the strategies of the current management is boiling down to numbers in the top and bottom line.

Bashing or praising PCH at the moment may be too early. I find both extremes are busy in this forum.. I suggest to exercise a bit of restraint...

"You must come to the realization that,
you will never learn how to win until you first learn how to lose."

P.S. This is not anti PCH nor Pro PCH

lovely!

i guess people have abandoned even the faux arguments, now it's strictly platitudes.


but remember what i said sometime ago when this stock was 29. i said it will come down to 20. but even at 20 it seems people are reluctant to buy

Nothing to argue about. There are many better stocks than PCH in the market as well as many worse stocks. My principle is as far as I can get a considerable capital gain I do trade in irrespective of blue chips or penny share or Whatever unless it's not going to bankrupt in near future. However I got a larger capital gain from PCH(as I entered and exited at correct time) than those who hold into celebrity blue chip shares like JKH,SPEN,DIAL etc during last few monts

RockStock wrote:Nothing to argue about. There are many better stocks than PCH in the market as well as many worse stocks. My principle is as far as I can get a considerable capital gain I do trade in irrespective of blue chips or penny share or Whatever unless it's not going to bankrupt in near future. However I got a larger capital gain from PCH(as I entered and exited at correct time) than those who hold into celebrity blue chip shares like JKH,SPEN,DIAL etc during last few monts

Agreed! we need to make quick and bold decisions to make money through trading......"the best companies are not always the best trading opportunities"

ha ha....

is that the new PCH mantra. I could swear that a few weeks ago people were talking about breaking barriers all the way to 100. now where is sampath2009?

maybe you guys weren't in that group. or maybe you chaps silently switched to this new "PCH is/was a wonderful trading opportunity" group.

Whatever the case maybe now, PCH was never presented as a trading stock. it was presented as a stock where you put your life saving to see it appreciate 500% every year. And the reason you chaps can gloat about your capital gains is that more than enough people were deceived into believing that nonsense. the violent anti-PCH movement was a response to this bullshit that was being peddled by MW et al.

Trading opportunities are a plenty in CSE but if people talk about trading stocks as opposed to investing in stocks that conversation has to include an exit strategy. I never heard of a PCH exit strategy by anyone back then. And now talking about how much money you made exiting at the right time is nothing short of masturbation.

Sorry mono, I am out of votes again.

invest-abc, it is very risky method. end of the day you will die from heart attack in such young age.

i can remember person called nithu @investnow.lk imply such theory with GREG. but i don't know whether she got a heart attack.

basically, I think your method is very risky. this is not about any shares. if you trade technically even with bad shares you will win. safest and profitable way to me is, technical trading of fundamentally sound stocks. then, even technical fail, i'm safe with fundamental. then i can have a good sleep too.

i'll buy back if it dropped to 13-14 levels for sure and will hold on until next quarter...........but i'm not sure of such a drop.......

Thanks for all the comments....I still have not purchased any PCH.... ....after all I thought of adopting a wait and see approach...anyway I'll will collect more and more LGL.

invest-abc wrote:Thanks for all the comments....I still have not purchased any PCH.... ....after all I thought of adopting a wait and see approach...anyway I'll will collect more and more LGL.

Thats the best srtegy at this time.. Dont try to do day trading with PCH.. its sophisticated and u may come out ur fingers burnt than u see a heap of money on ur door step..
For any new comer or any1 who has not done any findings, this is not recommended..
All of u have great shares in the current market than tying to get a quick buck out of PCH.. consider this as a long term investors and if you wanna buy. .buy around 19-20.. I doubt this will go back to 18s.. but current rates are good for collection for a long term investment... A word of causation for players

mono wrote:ha ha....

is that the new PCH mantra. I could swear that a few weeks ago people were talking about breaking barriers all the way to 100. now where is sampath2009?

@ Mono,

Wena deyak bala gena, thiyena deyak kala innawa....

but I repeat, #PCH will bullish again asap and will rise up from this dirty ashes.

And another thing Mono.

I noticed; in this forum 90% against PCH and investnow.lk

So in that case, I don't want to waste my time here.

but I like to share a bible poem with all of you

" Rise up, my love, my fair one, and come away.
For, lo, the winter is past, the rain is over and gone;
The flowers appear on the earth; the time of the singing of birds is come, and the voice of the turtle is heard in our land."
Bible - Song of Solomon

Good Luck !

sampath2009 wrote:

mono wrote:ha ha....

is that the new PCH mantra. I could swear that a few weeks ago people were talking about breaking barriers all the way to 100. now where is sampath2009?

@ Mono,

Wena deyak bala gena, thiyena deyak kala innawa....

but I repeat, #PCH will bullish again asap and will rise up from this dirty ashes.

And another thing Mono.

I noticed; in this forum 90% against PCH and investnow.lk

So in that case, I don't want to waste my time here.

but I like to share a bible poem with all of you

" Rise up, my love, my fair one, and come away.
For, lo, the winter is past, the rain is over and gone;
The flowers appear on the earth; the time of the singing of birds is come, and the voice of the turtle is heard in our land."
Bible - Song of Solomon

Good Luck !

sapumal2009,

last time u also said pch will 'gear up asap', ei mokak da une? maybe this time it will work. Although my real worry is not now. but what is in store for PCH in late march early april when the market goes into retraction. It seems to me the big share holders have sold out already, there is plenty of evidence of this considering the 300-400K sell orders we see everyday. so now the liquidity is maintained by the 'supiri investors'. I wonder how long these 'supiri investors' can hold on

BTW, i honestly don't think anthropomorphizing a stock is the best investment strategy, especially while giving it biblical context.

Here is a word of advice to those who have now switched to prayers PCH is now heavily oversold. there will be a small upturn soon maybe even friday. Make use of it.

tubal wrote:Here is a word of advice to those who have now switched to prayers PCH is now heavily oversold. there will be a small upturn soon maybe even friday. Make use of it.

it's not oversold if the selling was done by people like senthil. if that is the case there is another wave of sellers left in the wings. although this has to turn around sooner or later

tubal wrote:Here is a word of advice to those who have now switched to prayers PCH is now heavily oversold. there will be a small upturn soon maybe even friday. Make use of it.

simple stochastic cannot apply to this. it is in oversold region, but remember, these heavy sell orders are profit taking by people who collect it around 10. then people who bought PCH after 20's are not long term investors, just retailers who chasing behind quick profits. everyday PCH is pretending it is ready to go. but suddenly huge sell orders blocking the way. this is a game.

if PCH break 20 support level, we can see a blood bath again. personally, i'm quite interested in PCH. because i feel there is something on it. but i will not burn my fingers unless it drop to 16 level.

I think this will find support at 18 (unlike MW, I am not picking a figure out of thin air, that's the january 17 low). If that's breached, 14.50 is where it's next likely to find support (the earlier low).

However as Mono will be quick to point out, you can't really apply chart theory at the CSE, this is not an efficient market by any stretch of the imagination.

mono wrote:

tubal wrote:Here is a word of advice to those who have now switched to prayers PCH is now heavily oversold. there will be a small upturn soon maybe even friday. Make use of it.

it's not oversold if the selling was done by people like senthil. if that is the case there is another wave of sellers left in the wings. although this has to turn around sooner or later

PCH, BFL and Carsons still returning to thier base value. It will take months for them to pick up again.

Soundchips, I have no doubt that those shares will return to their previous values exactly as you say. However shares don't go straight up and straight down. In most markets when shares have been declining steadily for a week they have a couple of days where the price moves upwards. That's because a new set of investors enter the share thinking it's attractive. Similarly when a share moves up continuously it's usually interrupted by a few days of red. Of course sometimes it doesn't happen like that at the CSE

I collected it on 16 average level and I hope to hold it on another 3 , 4 quarters. All factors relating to price valuation on PCH is positive (Industry, Gov Policies, Market, demand, management, vision, political situ and so on)
Recently price was dropped due to produced EPS is not supported and most of the profit takers and panic sellers
PCH is growing share in growth sector. I believe I we can hold it on another two three years we can sell it more than 100.

wk7 wrote:I collected it on 16 average level and I hope to hold it on another 3 , 4 quarters. All factors relating to price valuation on PCH is positive (Industry, Gov Policies, Market, demand, management, vision, political situ and so on)
Recently price was dropped due to produced EPS is not supported and most of the profit takers and panic sellers
PCH is growing share in growth sector. I believe I we can hold it on another two three years we can sell it more than 100.

oh,you had to sell them off when it hits 30 levels,and buy back later.....i bought a lot average price of 15,and also i had some quantities bought from IPO...I SOLD THEM ALL AT 24-27 LEVELS IN INTERVALS..........

tubal wrote:Here is a word of advice to those who have now switched to prayers PCH is now heavily oversold. there will be a small upturn soon maybe even friday. Make use of it.

Thanks tubal! That was an amazing prediction.. I made use of it.