LGL Community

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Re: LGL Community

Postby Blue Whale » Fri Feb 23, 2018 6:46 pm

This is similar to what WATA has done recently. LGL price will get adjusted depending on the assigned values to the other 3 subsidiaries which they are going to list.
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Re: LGL Community

Postby SHARK » Fri Feb 23, 2018 8:13 pm

Price is what you pay. Value is what you get.”

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Re: LGL Community

Postby sashimaal » Tue Feb 27, 2018 1:14 pm

"Knowledge is being aware of what you can do. Wisdom is knowing when not to do it" - Brian Tracy

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Re: LGL Community

Postby SHARK » Tue Feb 27, 2018 10:34 pm

SHARK wrote:bullish chart pattern taking place .... i like to see 35 if it breaks 28

ගමන සුබවාදී ඇසකින් දකින්න පුළුවන් නම්
Price is what you pay. Value is what you get.”

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Re: LGL Community

Postby Blue Whale » Wed Feb 28, 2018 7:10 am

But price adjustments for carve outs need to be happen ne.
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Re: LGL Community

Postby SHARK » Wed Feb 28, 2018 9:43 am

20 to 30 for the bottom fishing investors
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Re: LGL Community

Postby SHARK » Wed Feb 28, 2018 9:52 am

SHARK wrote:
SHARK wrote:bullish chart pattern taking place .... i like to see 35 if it breaks 28

ගමන සුබවාදී ඇසකින් දකින්න පුළුවන් නම්

:D
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Re: LGL Community

Postby SHARK » Wed Feb 28, 2018 9:53 am

The momentum and swing traders can become active towards 37.5
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Re: LGL Community

Postby Blue Whale » Wed Feb 28, 2018 10:00 am

How these restructure can have an impact on the share price. Currently market is seeing this as a cause for increase in the value of LGL stock. Can we see it from numbers.
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Re: LGL Community

Postby SHARK » Wed Feb 28, 2018 10:19 am

the share is becoming pure play in the power sector alongside lioc .... giving clarity to future foreign investments
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Re: LGL Community

Postby eco » Thu Mar 08, 2018 7:52 pm

Today there was a good movement on this counter. May be due to coming restructuring plan. Any ideas from the experts?

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Re: LGL Community

Postby SHARK » Fri Mar 09, 2018 12:40 am

SHARK wrote:The momentum and swing traders can become active towards 37.5
so we closed today exactly at 37.5 :D
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Re: LGL Community

Postby Blue Whale » Fri Mar 09, 2018 7:37 am

Blue Whale wrote:How these restructure can have an impact on the share price. Currently market is seeing this as a cause for increase in the value of LGL stock. Can we see it from numbers.

Still wondering whether the current price is based on some numbers or a real speculative play.
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Re: LGL Community

Postby eco » Fri Mar 09, 2018 7:50 am

According to the MD Mr.Wegapitiya, All shareholders of the LGL entitled to shares of the other three companies which are going to listed in near future.
So, that may have an inpact on the existing LGL share prices......

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Re: LGL Community

Postby Blue Whale » Fri Mar 09, 2018 7:59 am

eco wrote:According to the MD Mr.Wegapitiya, All shareholders of the LGL entitled to shares of the other three companies which are going to listed in near future.
So, that may have an inpact on the existing LGL share prices......

This is similar to WATA arrangement. WATA assets were assigned under HPL and shareholders were given the HPL valued at the NAV difference. Similarly when LGL separate the assets of the three businesses from LGL group then the asset value of LGL will come down and the share price too should come down. But I can't see a reason for increasing the stock price of LGL like this.
Better to be cautious.
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Re: LGL Community

Postby GB » Sat Mar 10, 2018 9:17 am

I am with good capital gain. wondering where to sell or hold. Your ideas are welcome... :YMHUG:

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Re: LGL Community

Postby SHARK » Sat Mar 10, 2018 9:21 am

sashimaal wrote:No ! Only a temporary impact.

Artificially keeping prices low will have a worse impact and will just lead to more and more borrowings and losses for the SOEs.

What is needed is the formula with minimum Govt intervention.
Rs 110 is below requested amount.


dhanurrox wrote:
StockFlashSL wrote:Finally, Good for LGL. I'm surprised with the local election coming next year.

At this speed inflation will hit double digits.


inflation below 5% these days :)
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Re: LGL Community

Postby sashimaal » Sat Mar 10, 2018 9:37 am

Main reason for LGL movement was their restructuring. Areas where there are big losses such as Hotels will in future be separately taken and will be linked to Net assets as they will then be in the Hotels sector valuations. Currently it weighs a lot on the overall profitability.

JKH is an example for such where they have their Hotels, CCS, JKL, etc businesses separated as well and holdings of those will benefit the overall JKH share price (ex: Rs 900+ CCS shares) .

Gas business was making big losses for over an year due to Govt intervention beyond agreed levels.

Also there is speculation of an increase in gas prices very soon.

Disc: holding
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Re: LGL Community

Postby push » Sat Mar 10, 2018 10:05 am

LGL wanted to be a holding company for a long time, you can see this in their annual reports, i'm glad that they made their move.
yes LGL asset value will be impacted but I believe it does not impact their future earning power.. they can distribute GAS for most of the south Asian countries with their new 35k MT gas storage facility and with newly purchased vessels. do not forget the solar farm 20MW..
therefore, i do not hesitate to hold this as a LT share, also you will get bonuses like these on the way...someone should do proper calculations before entering at current price levels 37.50.
dicl; I bought at 26.

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Re: LGL Community

Postby SHARK » Sat Mar 10, 2018 10:24 am

prasa2004 wrote:RIP Laugh

No near hope of recovery with OIL and Metals prices raising and borrowing cost zooming. Pathetic. NAV going down rapid pace (18) and better watch
Appreciate the courage of Wegapitiya for his SH message (even though same for last 03 Q ). Laugh has chew more than it can digest as too much expansion with borrowed money (77% inc of fin cost)

https://cdn.cse.lk/cmt/upload_report_fi ... 652065.pdf

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Re: LGL Community

Postby SHARK » Sat Mar 10, 2018 10:26 am

push wrote:LGL wanted to be a holding company for a long time, you can see this in their annual reports, i'm glad that they made their move.
yes LGL asset value will be impacted but I believe it does not impact their future earning power.. they can distribute GAS for most of the south Asian countries with their new 35k MT gas storage facility and with newly purchased vessels. do not forget the solar farm 20MW..
therefore, i do not hesitate to hold this as a LT share, also you will get bonuses like these on the way...someone should do proper calculations before entering at current price levels 37.50.
dicl; I bought at 26.


Thanks Push.....

What we have to understand is that these sectors attract very high PE multiples, due to its high investments.

So fingers crossed.... LGL decision was timely in that true sense. :)
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Re: LGL Community

Postby Blue Whale » Sat Mar 10, 2018 11:13 am

sashimaal wrote:Main reason for LGL movement was their restructuring. Areas where there are big losses such as Hotels will in future be separately taken and will be linked to Net assets as they will then be in the Hotels sector valuations. Currently it weighs a lot on the overall profitability.

JKH is an example for such where they have their Hotels, CCS, JKL, etc businesses separated as well and holdings of those will benefit the overall JKH share price (ex: Rs 900+ CCS shares) .

Gas business was making big losses for over an year due to Govt intervention beyond agreed levels.

Also there is speculation of an increase in gas prices very soon.

Disc: holding

This is right considering the future improvements. But my argument is that the separation of 3 businesses can't have an immediate impact on price movement of the existing stock. Simply it's the same business even just after the separation of the business. Price movement from 27 to 37 seems very artificial to me.
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Re: LGL Community

Postby SHARK » Sat Mar 10, 2018 11:43 am

in the past we have discussed what should be the share trading price of LGL, if one go through the previous posts.

LT target is nearing and it doesnt mean there will be ST volatility due to price movers behavioral patterns in the future owing to partial booking profits, exits etc.

in the eyes of big funds thinking of entering now.... they must be eyeing differently than us.

as a rule of thumb i like to value over 12 pe multiples in post improved earnings time periods.

so in short we are looking LGL on a forwards EPS base PE multiples.

i like to reminiscent in the past journeys of many shares that were in the 30s, but gradually change in to higher multiples with improved earnings as well.

company names are with-held for obvious reasons
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Re: LGL Community

Postby eco » Sat Mar 10, 2018 1:17 pm

If we look at the Mr.Wegapitiya's statement, his main intention to attract foreign party & to bring the synergy to LGL. So, in that point of view there may be an involvement of a foreign party. Then existing price for that type of purpose is good as i feel.

Any comment pls.

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Re: LGL Community

Postby sashimaal » Sat Mar 10, 2018 2:37 pm

Whether the immediate price of the group share should go up or down should be judged only after a calculation of PE, NAV all the companies.
Most of the info is given already in the documents the Group released.
Let's see BW taking the challenge :D ;)


Blue Whale wrote:
sashimaal wrote:Main reason for LGL movement was their restructuring. Areas where there are big losses such as Hotels will in future be separately taken and will be linked to Net assets as they will then be in the Hotels sector valuations. Currently it weighs a lot on the overall profitability.

JKH is an example for such where they have their Hotels, CCS, JKL, etc businesses separated as well and holdings of those will benefit the overall JKH share price (ex: Rs 900+ CCS shares) .

Gas business was making big losses for over an year due to Govt intervention beyond agreed levels.

Also there is speculation of an increase in gas prices very soon.

Disc: holding

This is right considering the future improvements. But my argument is that the separation of 3 businesses can't have an immediate impact on price movement of the existing stock. Simply it's the same business even just after the separation of the business. Price movement from 27 to 37 seems very artificial to me.
"Knowledge is being aware of what you can do. Wisdom is knowing when not to do it" - Brian Tracy


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