Plantations - snapshot

[First Guy]

[You must be registered and logged in to see this image.]

Most talked about in this forum are TPL and WATA. One I was interested in is KGAL.

Seems there's one similar to TPL. I can remember someone talked about this some time back.

[pathfinderTop contributor]

Thanks friend one like from me.

[yellow knifeTop contributor]

thanx FG

[First Guy]

But is there something wrong in how these are trading? If you draw the trendline, it won't be how it's supposed to be. But then again we are comparing only ROE and P/E.
Book value may not be that important here but since earnings may include fair value changes, cashflow might be a useful pointer. Unfortunately I don't have those values readily available.

[yellow knifeTop contributor]

Real problem is predicting future based on past performance

[Jana1Top contributor]

Thanks FG

[First Guy]

Real problem is predicting future based on past performance

True. Long time back I held HOPL. Now only KGAL (small quantity) as I view KGAL differently from others which can 'survive' and make a decent profit regardless of the situation due to their investments.

[HUNTERTop contributor]

But is there something wrong in how these are trading? If you draw the trendline, it won't be how it's supposed to be. But then again we are comparing only ROE and P/E.
.....
.

Good presentation FG +

Wonder if we have a way of showing more than 3~4 parameters in the same graph.
I can vaguely imagine a 3 dimensional graph for 3 parameters but beyond that, is inconceivable.

Anybody has any experience with 'multi dimensional' graphs?

[dhanurrox]

But is there something wrong in how these are trading? If you draw the trendline, it won't be how it's supposed to be. But then again we are comparing only ROE and P/E.
.....
.

Good presentation FG +

Wonder if we have a way of showing more than 3~4 parameters in the same graph.
I can vaguely imagine a 3 dimensional graph for 3 parameters but beyond that, is inconceivable.

Anybody has any experience with 'multi dimensional' graphs?

giving weights and getting a figure is the answer.graphing possible but hard to understand.

[yellow knifeTop contributor]

Kegalle is too much into Rubber where the rubber price will remain lower as long as petrol price remain lower in the world market..

When comparing PE and EPS I dont think Kegalle Plantations PLC as attractive at current level..

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
EPS	5.08	13.84	18.93	30.79	35.33	15.04	7.1	17.1	12.45	7.66
PE ratio	16.89	7.59	5.92	3.34	5.87	3.12	2.68	3.51	3.37	5.22

[You must be registered and logged in to see this image.]

[First Guy]

When compared with other plantations KGAL has the lowest amount of biological assets as more than half their assets are in financial investments. So I won't look at it as a pure plantation company. only 50% of total equity is in biological assets, next lowest is WATA with 78% while all the others are 100% and above. The investments may be giving it some cushioning during these 'hard-times' but may not allow the company to maximize profits when the 'good-times' come. Also KGAL might be using the returns from (net) investments for operations, but I like to separate this from the core business. As far as cashflows go, I find TPL the most attractive (based on last 12 months), followed by HOPL, ELPL and BOPL.

[First Guy]

Kegalle is too much into Rubber where the rubber price will remain lower as long as petrol price remain lower in the world market..

When comparing PE and EPS I dont think Kegalle Plantations PLC as attractive at current level..

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
EPS	5.08	13.84	18.93	30.79	35.33	15.04	7.1	17.1	12.45	7.66
PE ratio	16.89	7.59	5.92	3.34	5.87	3.12	2.68	3.51	3.37	5.22

KGAL reported EPS of 9.16/- and not 5.08/-

But needless to say almost everything from investments

[yellow knifeTop contributor]

well I took company EPS where as you have considered Group EPS..

I agree with you on biological asset matter..

The positive qualitative factor of Kegalle is its managed by Dr Sena Yaddehige and team.. Even when the rubber price dropped to bottom they manage to make profit and declare dividends..

[HUNTERTop contributor]

IMO, As far as the share valuation is concerned, we need to consider (assigned to shareholder-) group figures (Not company).

Any other views?

[First Guy]

But is there something wrong in how these are trading? If you draw the trendline, it won't be how it's supposed to be. But then again we are comparing only ROE and P/E.
.....
.

Good presentation FG +

Wonder if we have a way of showing more than 3~4 parameters in the same graph.
I can vaguely imagine a 3 dimensional graph for 3 parameters but beyond that, is inconceivable.

Anybody has any experience with 'multi dimensional' graphs?

It would get a bit confusing in addition to being difficult to generate.

[chutiputhaTop contributor]

Overall Plantation Sector..

[You must be registered and logged in to see this image.]

6 Month Period

[You must be registered and logged in to see this image.]

[First Guy]

When compared with other plantations KGAL has the lowest amount of biological assets as more than half their assets are in financial investments. So I won't look at it as a pure plantation company. only 50% of total equity is in biological assets, next lowest is WATA with 78% while all the others are 100% and above. The investments may be giving it some cushioning during these 'hard-times' but may not allow the company to maximize profits when the 'good-times' come. Also KGAL might be using the returns from (net) investments for operations, but I like to separate this from the core business. As far as cashflows go, I find TPL the most attractive (based on last 12 months), followed by HOPL, ELPL and BOPL.

My above positive view on KGAL was based on the amount of financial assets that they have. We should have known the end game of RPC plantation management's end game better.

Now that some good chunk of cash out, we need to analyze it further. But the money would not have been generating adequate returns thus returned to shareholders (parent)

Again, we are assuming that the announcement is correct. Bummer, if not.

[CKActive Member]

time to see again..

[CKActive Member]

I am focusing mask and ldev seriously.