flch,bil,brwn,lolc and bfl are they realy undervalued ????

Many people say that above counters are really under valued..But why don't they move up ??

It's true that a lot of people still keeping FLCH and BIL thinking they are under valued.But trading below IPO Price is not a reason to decide that is undervalued.

See bitter truth

1)FLCH - 80% of profit derives from Plantation Sector. So June Qtr Statement should be Negative(ie;slight profit or loss). So it is impossible to reach Rs 5 unless manipulation.

2)BIL - Some says its EPS is Rs 3 based on 2010/2011 Annual Report. So valued Rs xxx. But when we remove deem disposal gain and other capital gains it maximum values Rs 5.

3)BRWN - Some says its good to collect @ current price based on 2010/1011 Annual Report.But If look @ march and june statement it values maximum 250-280.

4)BFL - Some says its good to collect @ current price based on 2010/1011 Annual Report.But If look @ march and June statement it values maximum 250-300.
Unless fish price rise we can't expect exceptional statement from BFL in near future( even in Dec Qtr).

5)LOLC - Some says its good to collect @ current price based on 2010/1011 Annual Report.But If look @ march and june statement it values maximum Rs 100.

Better make decisions based on latest Financial Report rather than Old Annual Reportsssssssss

Comments are welcome.......

My sole argument is those are not undervalued based on latest FR

But they may be good on long term basis (more than 1 year)

FLCH
yes.It's totally depend on their plantations,70% revenue comes from Tea and present condition in middle east is not good for Tea sector shares.Their book value is 4.6 i think that's why people so interested about it, but most of it contributed from Timber stocks. Billions of value timber.seems like stocks are not moving...
To me it's long term counter.
BRWN and BFL
These are my wining stocks.Never lost a penny from investing these two.
Current prices are good to collect,we all know the potential of these companies.I like to trust on potential future earnings of a company rather than trusting news or rumors.

rcharindu wrote:FLCH
yes.It's totally depend on their plantations,70% revenue comes from Tea and present condition in middle east is not good for Tea sector shares.Their book value is 4.6 i think that's why people so interested about it, but most of it contributed from Timber stocks. Billions of value timber.seems like stocks are not moving...
To me it's long term counter.
BRWN and BFL
These are my wining stocks.Never lost a penny from investing these two.
Current prices are good to collect,we all know the potential of these companies.I like to trust on potential future earnings of a company rather than trusting news or rumors.

hear hear... Well said mate!

rcharindu wrote:
BRWN and BFL
These are my wining stocks.Never lost a penny from investing these two.
Current prices are good to collect,we all know the potential of these companies.I like to trust on potential future earnings of a company rather than trusting news or rumors.

Do you expect them to show impressive result in next Qtr ?

In my view FLCH is a stock for the future.. It is trading way below the NAVPS so it really is undervalued.. I agree with you on your comment that a share cannot be considered undervalued just bcz it is trading below the IPO price since most of the IPOs are valued at a high price. However, considering the financials of FLCH, I think it is fairly valued..

Yehh, the main contributor to the income of FLCH is the planttion sector.. But they are aggresively diversifying into other lucrative sectors such as energy, leisure and property.. Therefore I belive FLCH is a sound long term counter..

laka wrote:Many people say that above counters are really under valued..........................................

It's true that a lot of people still keeping FLCH and BIL thinking they are under valued.
.......................................................

Pardon me for my ignorance.
But ,I still can't imagine how someone arrives at above conclusions.

laka wrote:Many people say that above counters are really under valued..But why don't they move up ??

Better make decisions based on latest Financial Report rather than Old Annual Reportsssssssss

Comments are welcome.......

Well, we do need to consider the past Annual Reports...also, have to look at the latest Financial Reports...but, for me what is most important is determining the immediate and long term future potential....when it comes to equity investments always future is more important than the Past & Present.

laka wrote:Many people say that above counters are really under valued..But why don't they move up ??

It's true that a lot of people still keeping FLCH and BIL thinking they are under valued.But trading below IPO Price is not a reason to decide that is undervalued.

See bitter truth

3)BRWN - Some says its good to collect @ current price based on 2010/1011 Annual Report.But If look @ march and june statement it values maximum 250-280.

4)BFL - Some says its good to collect @ current price based on 2010/1011 Annual Report.But If look @ march and June statement it values maximum 250-300.
Unless fish price rise we can't expect exceptional statement from BFL in near future( even in Dec Qtr).

5)LOLC - Some says its good to collect @ current price based on 2010/1011 Annual Report.But If look @ march and june statement it values maximum Rs 100.

Better make decisions based on latest Financial Report rather than Old Annual Reportsssssssss

Comments are welcome.......

Dude.. Throw away the ARs.. get and analyse the recent 2 years quarterly results and find out what qtrs it has done badly and what qtrs it has given a good report..
Next is to project a modest growth rate removing seasonal variations (i.e. BFL - December season is the best). Then you know where your company stands..
Every company could go through a difficult time in their life cycle.. From inception to maturity growth is the middle stage.. So most of these companies are in growth stage, 1-2 qtr profits down doesn't mean the company is going down.. U can come to that conclusion if the results are in a declining trend for the 4qtrs..

No investor look at the recent AR or 2 qtr results and jump into a conclusion to see whether the company is worthy to invest in or not.. U can see that Mr. H.J's decision to buy SUGA know? Now its profitable after some time..
If somebody really invest in now its the time to invest in it cuz I think HJ has found out the burning issues in that company and turn it around.
If I'm an investor I'd be looking at the cash position, investments, hidden assets, internal problems which bring down the profits, labour issues, admin overheads, competency of the management, etc, etc... to invest in the company to make it a success..

For BFL, ppl who had bought this in an IPO over about 9 years ago are winners if they've sold this over 400.. even for the ppl who bought this last year when it was at 50-80s...

Therefore; your approach and angle of looking at this is not the ideal way for an investment.. may be these are not good for day trading or short term trading..

PLEASE LOOK AT THE FUTURE POTENTIAL. LAST TWO QTRs IS HISTORY.

My opinion is all the above stocks are good to buy at current prices. I will take one. BRWN is reporting losses is because stock market is down. so their investment income in negative. But what will happent if market hit 7,500 level by sep. 30th. They will report a huge profit. Studing the Q and AR s is good. But we have to look at the future potrntial also.

harisha,

I think you are not wrong. But past performance too important factors to predict future potential and assess the management capabilities of the company.

It's always good to identify future performing counters, which most of investors are neglected.

Most important thing is not past earnings, not even the present earnings, but surely FUTURE EARNING POTENTIAL. If we identified future winners and enter now, we will be able to win, and that is the whole idea of investing.

No argument WildBear.

hariesha wrote:PLEASE LOOK AT THE FUTURE POTENTIAL. LAST TWO QTRs IS HISTORY.

My opinion is all the above stocks are good to buy at current prices. I will take one. BRWN is reporting losses is because stock market is down. so their investment income in negative. But what will happent if market hit 7,500 level by sep. 30th. They will report a huge profit. Studing the Q and AR s is good. But we have to look at the future potrntial also.

Do you expect significant improvement in September FR for those counters.

If ASI hit 7500 BRWN will have additionally about Rs 4 of EPS from unrealized gain.

@all
My argument is those are not potential in next Qtr also.

There were similar instances in the past….. Earlier also good stocks like BRWN and SAMP which continue to show improving financials such as quarter to quarter improvement and year on year growth were looked down upon …….and got the frustrated long term investors to dump stocks with losses …….mean time large collections were going on and stocks started to reach very high levels within weeks…..


Any observer can see that BIL large collections were taking place .... similar things happened in SAMP and BRWN...


http://www.bloomberg.com/apps/quote?ticker=BRWN:SL


Large scale collections on BRWN took place in August/Sept 2010 as well as in August 2011

laka wrote:

rcharindu wrote:
BRWN and BFL
These are my wining stocks.Never lost a penny from investing these two.
Current prices are good to collect,we all know the potential of these companies.I like to trust on potential future earnings of a company rather than trusting news or rumors.

Do you expect them to show impressive result in next Qtr ?

No,I'm not expecting impressive results,but much better result than last Quarter.If we consider all 3 chicken stocks normally 3rd quarter results are very much same with the Q2.only slight differences and Last quarter results are not good for all the 3 stocks..According to my studies profit margins are also reduced in all 3 companies.I think it's mainly because of;
On May it's 2600th Sam Budda jayanti,Maize price increment in commodity market and as i can remember government import some chicken stocks for April festival season....
From BFL, for next quarter i expect at least EPS of between 5.5-6.5.
Currently it's stagnate around 250.so P/E is about 18.85 but if we compair it with TAFL and GRAN it's very low.Nw It's a mid-term counter,I have High hopes for December quarter results...

This only my view based on my studies,Please correct me if i am wrong..