CSD - Financials & Technicals at a Glance

Financials at a Glance;

CSD announced a 1:1 Rights Issue @ a price of 11 and 73,982,430 Ordinary Voting Shares of the Company were listed on 27th June 2011 as a result.

Capital Infusion from rights = Rs 813,806,730/-. As per the quarterly financials of 30-06-11, the Company has also settled borrowings of Rs. 680,081,053.46 with the part of funds raised from this Rights Issue.



For the qtr ended 31/03/11 they've made a loss of 0.44 Mn but their NAV was 47.56 while they had a negative EPS value and the last qtr 30/06/11 they've come nack to profitability with a EPS of 0.37

During the year 2010 the property at No. 90, Galle Road, Colombo 03 - East Tower was reclassified as an Investment Property and the carried forward revaluation surplus was transferred to the retained earnings and restated the opening balance according in the 1st quarter 2011. The value of this is 4.59 Bil.

Interestingly after rights issue, the NAV of the company has fallen to 29.65 and considering the last close of 16.60 on 19-08-11, this is still trading under the NAV value.

Catch - AS you can see on the financial reports, the finance expense of 22.36 Mn has been entered as a + figure this qtr (while it was a to be deducted value last qtr) which I'm trying hard to find out why???????

Technical Charts at a Glance;

The following Chart was a combination of two trading systems, and the colorful ones were the popular indicator called "Alligator". According to this the momentum is still up by lips of the alligator being upwards but the signals to the left indicates the contrary as most of the signals are down.

At the bottom u can see the price breakout chart where it has evolved form 11.8 the lower level and touched 20.6 two times but failed to break out from that level upwards. So this is one resistance while we have some sort of support to be seen around 14-15.
Sometimes this can even come back to 15 or 16 before another run could be started and we need ASI to be stay green to trigger the market is moving up..

Nothing of this will give you a buy/sell indication of any sort and no emphasize has been taken to elaborate the same. Just analyse and take you decision.
P.S. I've got a small amount of CSD.

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could that be the interest earned from the money raised by the right issue ?

Very interesting,
EAST & CLND trading @ 04 times of it's NAV.
But, CSD is trading 0.56 times.
CSD now huge potential upside share.

Current market, as per CSE Daily report,
Average PBV is arround 2 times.
How, If CSD value at PBV = x2 ................?

Hi Smallville,

I really like ur fundamental analysis though i am much into tech an. + rep from me. btwn i want some lessons from u. ill PM. hope it's fine for u.

Regards.
BG

True, CSD is an under valued share.
But due to some strange reason it has lost steam to move forward.

I think its done for this Q.

@Smallville,

Whatever the reason there to show a positive number under finance expenses it could have been the same as to why they showed a positive number in in 31 December 2010 quarter. See below how CSD Interest expenses for the year ended 31 December 2010....

31.03.2010 (LKR36,067k)
30.06.2010 (LKR35,789K)
30.09.2010 (LKR36,765K)
31.12.2010 LKR23,686K (positive number)
Total LKR84,935K
AR 2010 LKR84,701K

I guess they may have got a discount on the interest expenses at the end of each year OR the quarterly interest accruals are estimates & when they get final number they adjust for excess accrual of interest.

The accrued interest for the first quarter is LKR28,075 which is more than the 25% of the interest expenses for the year ended 31 December 2010 (84,701/4 = LKR21,175K)

I guess when they finalised & settled all their loan balances they may have got a discount! I may be wrong!

Additional Info Loan and interest balances.....


Interest Bearing Barrowings and Loans of CSD - Reconciliation

Interest Bearing Borrowings 31.12.2010 800,033 As per Annual Report 2010
Interest Expenses up to the period 30/06/2011 5,707 As per Income statement 30/06/2011
Interest Income up to the period 30/06/2011 2,519 As per Income statement 30/06/2011
Interest Payments up to the Period 30/06/2011 -51,863 As per Cash Flow Statement
Loan Repayment -680,081 As per Management comment 30/06/2011 Accounts
New Loans Obtained 47,084 As per Cash Flow Statement - (This amount from the difference between Net Loan repayment LKR 632,997K as per cash flow statement & Loan Repayment LKR680,081K)
Expected Loan Balance as of 30/06/2011 123,399

Loan Balance as of 30/06/2011 81,431 As per Balance Sheet 30/06/2011

Difference 41,968 The reason could be Interest accruals are included under "Other Payables"

Greedy.. OK it means the amount is not by mistake

I cannot say that... There could be a mistake. We cannot prove it whether it is right or wrong unless we have more information...

By the way, how do you post an image like you have done with CSD financials?

greedy wrote:Additional Info Loan and interest balances.....


Interest Bearing Barrowings and Loans of CSD - Reconciliation

Interest Bearing Borrowings 31.12.2010 800,033 As per Annual Report 2010
Interest Expenses up to the period 30/06/2011 5,707 As per Income statement 30/06/2011
Interest Income up to the period 30/06/2011 2,519 As per Income statement 30/06/2011
Interest Payments up to the Period 30/06/2011 -51,863 As per Cash Flow Statement
Loan Repayment -680,081 As per Management comment 30/06/2011 Accounts
New Loans Obtained 47,084 As per Cash Flow Statement - (This amount from the difference between Net Loan repayment LKR 632,997K as per cash flow statement & Loan Repayment LKR680,081K)
Expected Loan Balance as of 30/06/2011 123,399

Loan Balance as of 30/06/2011 81,431 As per Balance Sheet 30/06/2011

Difference 41,968 The reason could be Interest accruals are included under "Other Payables"

+ from me.very interesting. we hopes more findings like this. thanks.

smallville wrote:Financials at a Glance;

CSD announced a 1:1 Rights Issue @ a price of 11 and 73,982,430 Ordinary Voting Shares of the Company were listed on 27th June 2011 as a result.

Capital Infusion from rights = Rs 813,806,730/-. As per the quarterly financials of 30-06-11, the Company has also settled borrowings of Rs. 680,081,053.46 with the part of funds raised from this Rights Issue.



For the qtr ended 31/03/11 they've made a loss of 0.44 Mn but their NAV was 47.56 while they had a negative EPS value and the last qtr 30/06/11 they've come nack to profitability with a EPS of 0.37

During the year 2010 the property at No. 90, Galle Road, Colombo 03 - East Tower was reclassified as an Investment Property and the carried forward revaluation surplus was transferred to the retained earnings and restated the opening balance according in the 1st quarter 2011. The value of this is 4.59 Bil.

Interestingly after rights issue, the NAV of the company has fallen to 29.65 and considering the last close of 16.60 on 19-08-11, this is still trading under the NAV value.

Catch - AS you can see on the financial reports, the finance expense of 22.36 Mn has been entered as a + figure this qtr (while it was a to be deducted value last qtr) which I'm trying hard to find out why???????

Technical Charts at a Glance;

The following Chart was a combination of two trading systems, and the colorful ones were the popular indicator called "Alligator". According to this the momentum is still up by lips of the alligator being upwards but the signals to the left indicates the contrary as most of the signals are down.

At the bottom u can see the price breakout chart where it has evolved form 11.8 the lower level and touched 20.6 two times but failed to break out from that level upwards. So this is one resistance while we have some sort of support to be seen around 14-15.
Sometimes this can even come back to 15 or 16 before another run could be started and we need ASI to be stay green to trigger the market is moving up..

Nothing of this will give you a buy/sell indication of any sort and no emphasize has been taken to elaborate the same. Just analyse and take you decision.
P.S. I've got a small amount of CSD.

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Great work. Thank you very much. Need more and more these kind of works rather than try to manipulate share.