INDUSTRIAL ASPHALTS (CEYLON) PLC (ASPH.N0000)

[sereneTop contributor]

Very Interesting Subdivision.

https://cdn.cse.lk/cmt/announcement_portal_prod/ASPH%20Announcement%20-%2020.03.2020_7203880372822713.pdf

Sub-Division :
Voting :1 : 4500
Existing number of shares of the company :
Voting :666,562
Resulting number of shares of the company after sub-division :
Voting :2,999,529,000

Minimum price a share can trade Rs.0.10.

1:4500 Implies : minimum Value after subdivision is Rs.450/=

Current Net Asset Value Rs.825/=
To days closing price Rs 292.50
So that after sub division minimum gain of over 150%  is guaranteed.

Risk
 You might not able to sell even at Rs 0.10 after the massive subdivision.

Even though PE is high this is not a loss making company and trailing EPS is around 10.
To be frank don't have any idea about the Company.

Is there something that I didn't see?
Please share your Ideas.

[Niru]

Min expected gain will be 50% not 150%

[Niru]

Actually the jump in NAV was due to they have revalued their land value from 3 million to 577 million in 2017
So please aware of this fact. Please check on Q2 2017/2018 reports.

[Niru]

.i.e. NAV jumped from 91 to 941/-

[sereneTop contributor]

Min expected gain will be 50% not 150%

Yes. True.
Thanks for the NAV information, will check.
Please enlighten us if you know more about the company.

[sereneTop contributor]

Niru another thing, You are active here since 2015 and seems to have good knowledge.
But only 5 posts up to now.
Encourage for more knowledge sharing.

[nihal123Top contributor]

Niru another thing, You are active here since 2015 and seems to have good knowledge.
But only 5 posts up to now.
Encourage for more knowledge sharing.

Niru, yes, you can

[RJ1010]

I’m a newbie to this trade but very curious about the daily fluctuations in this share between 0.10 and 0.20. Does this mean traders are buying at 0.10 and selling at 0.20 and making huge profits with these fluctuations?

[sereneTop contributor]

If you are a newbie to Share market don't even look at ASPH.

[RJ1010]

I know the split share issue. I know most investors are highly critical of this companies moves. Was wondering how the up/down movement of the share price is being used by traders. No harm in knowing I guess...

[smallvilleTop contributor]

I know the split share issue. I know most investors are highly critical of this companies moves. Was wondering how the up/down movement of the share price is being used by traders. No harm in knowing I guess...

problem is u will not be able to buy at 0.10.. If you somehow managed to buy it now u can sell at 0.20 as from yday its getting collected with the intention of pushin towards 0.40 to make the right issue a success (IMO)

[BackstageTop contributor]

Didn't Slstock give a detailed analysis about the split in a another thread ? If someone knows please paste it on this thread.