COLO & UML

stocks hunter · 1 COLO & UML Fri Sep 09, 2011 6:14 pm

stocks hunter

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Who are in this forum knows why these shares are suddenly got the investor attention. This is not manipulation friends. Its pure buying. People who know the hidden of this will be winners for sure in future.

Rapaport · 2 Re: COLO & UML Fri Sep 09, 2011 8:26 pm

Rapaport

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I am not surprised that not many have viewed your query nor have they replied. Its a common trend seen these days where the crowd is attracted towards junk stocks mainly and thats where most of the discussions are centered.

The stocks COLO and UML you are talking about are good stocks with good future forecasts and fundamentally strong. I have not studied UML much so i will tell you something about COLO.

Firstly most forecast an EPS between 65-90/- for this stock for the current financial year FY12 and if you take a PER between 10X-15X, then the stock has a minimum future value of 650/- (65 x 10 PER). The maximum in my opinion it can reach if market is on full gear and if the company does exceptionally well is 1350/- (90 x 15 PER). Also this company has good assets and is backed by a strong management which also manage CFLB, LCEY, EBCR and many other companies. Low interest rates, Car permits and increasing incomes are pushing demand for their KIA vehicles which has order books filled for next couple of months.

Now here are the negative factors. Many sections are pushing for an increase in vehicle taxes and this is more or less likely to happen soon because our roads are too congested and alot of foreign exchange is leaving our country exerting pressure on our currency and interest rates. However such an increment will be small and may come before the budget. Also interest rates are under pressure and may rise up decreasing demand for vehicles. The worst move at this point will be for government to import cars via Hambantota port which will increase cost.

This is just my analysis and not a buy or sell or hold signal Shocked

. Please analyse further. Locate COLO analysis written by moderator hasi84, CapitalTrust analysis on COLO, Asia Securities analysis on COLO, JB securities article on the motor industry, Bartleet report on DIMO.

Also look into DIMO which is pretty much on the same road as COLO.

Cheers! Very Happy

stocks hunter · 3 Re: COLO & UML Fri Sep 09, 2011 10:25 pm

stocks hunter

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Thanks Rapa for your detailed vomments about COLO. just as that i think UML has reported excellent results for the 1q as at 30/06/11. EPS is well above Rs 6.00 & this figure will improve further due to the demand for permit vehicles. Demand goes to Mitsubushi & kia vehicles. Just see the revenue from sale of vehicles in the 1Q report of UML.

TO ME IF ALL GOES WELL this share should trade close to Rs 300 levels after the full year 2011 report.

We will wait & see.

This is only for sharing - final decision is at your own risk.

Three cheers Very Happy