Re: Plantation Sector Updates

[BackstageTop contributor]

New laws to revamp RPCs: PM

Claims RPCs have benefited the most in past 150 years
Asserts country cannot pay the price for bad performance of RPCs
New management qualifications to be introduced to RPC board members
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By Charumini de Silva

Prime Minister Ranil Wickremesinghe yesterday confirmed that new laws will be introduced for regional plantation companies (RPCs) to improve productivity and make them accountable to Parliament.

Speaking at the Colombo International Tea Convention organised by the Colombo Tea Traders Association (CTA) to celebrate 150 years of Ceylon Tea, he claimed that RPCs had enjoyed most of the benefits of the tea industry and it was time for them to deliver as standalone companies.

“As far as the RPCs are concerned we will bring in a new law which will put out the duties and the factions. You will find more active golden shareholders, not the sleeping ones and they all will be accountable to Parliament,” he added.

Wickremesinghe said the Government will assess the performance of the RPCs. “The bad performers should exit the sector, while the good performers must be encouraged to modernise and go ahead and face competition from the other side. The country cannot pay the price for the bad performers.”

He said that RPCs would have to become standalone companies and not as large groups added on to the balance sheets for them to get a better return or a price for their shares.

“You are running a RPC that that is earning money for us. Don’t put it to get away with your imports of motor cars or bridges. Anyone who is a golden shareholder will have to be a standalone company. You can invest in the group, I have no problem with that, but we cannot get submerged,” he stressed.

The Prime Minister also said that there will be qualifications introduced for directors who could be a non-working director and working director at RPC family holdings of 50 acres.

“In some RPCs, they have directors who are common to all their boards. Some of them don’t even drink tea — they drink either coffee or brandy,” he quipped.

[The Invisible]

I expect a renewed interest in the plantations sector from today.

Balangoda & Mdulsima plantations have released unexpectedly exceptional reports that will drive those share prices to new highs

namunukula, Kegalle and Maskeliya plantations have released good reports inline with the expectations.

Elpitiya, Udapussellawa and hapugastenne to come with good quarterly reports.

I think more trading opportunities will come towards us.

Cheers

[කිත්සිරි ද සිල්වාTop contributor]

Some were just woken up but there is no greater appetite yet.

[The Invisible]

Some were just woken up but there is no greater appetite yet.

Appetite will come slowly but don't forget this is the sector gave thunderous returns to the investors this year so far while all other industries just crawling and limping.

Today Balangoda entered into a new territory and closed @ 21.80
Madulsima too entered into a new territory and closed @ 10.90
Malwathe already establishing around 6.00
Udapusellawa and Hapugasthenne showing strong signs of establishing new highs
Elpitiya have stabilized arfround 30.00 and the next move will take the stock to a completely unknown territory

How will these stocks trade in the next couple of weeks will place the plantation sector on a completely new track.

[කිත්සිරි ද සිල්වාTop contributor]

Yes.
( Happy, I got there before many others realized the opportunity )

Some were just woken up but there is no greater appetite yet.

Appetite will come slowly but don't forget this is the sector gave thunderous returns to the investors this year so far while all other industries just crawling and limping.

Today Balangoda entered into a new territory and closed @ 21.80
Madulsima too entered into a new territory and closed @ 10.90
Malwathe already establishing around 6.00
Udapusellawa and Hapugasthenne showing strong signs of establishing new highs
Elpitiya have stabilized arfround 30.00 and the next move will take the stock to a completely unknown territory

How will these stocks trade in the next couple of weeks will place the plantation sector on a completely new track.

[jiggysaurusTop contributor]

I expect a renewed interest in the plantations sector from today.

Balangoda & Mdulsima plantations have released unexpectedly exceptional reports that will drive those share prices to new highs

Oya Dekey habay podi gimarting part ekak uth thiyenawa. See note 7 in BALA

[The Invisible]

I expect a renewed interest in the plantations sector from today.

Balangoda & Mdulsima plantations have released unexpectedly exceptional reports that will drive those share prices to new highs

Oya Dekey habay podi gimarting part ekak uth thiyenawa. See note 7 in BALA

I noted that very early. The management fee and the management profit share were not paid due to the cash constraints. They have provided it early but now reversing. But what is most important is the recurring earning by this company which is the gross profit minus operating expenditure. As there are no taxes any surplus is a pure profit. The lower issued share capital will be responsible for a higher EPS. If BALA can produce another 8/- as EPS for next half then can you think the price @ a PE of say 3x.

[smallvilleTop contributor]

All plantations are doing reasonably well due to the SL droughts in 2017, see the results of TEA.. good EPS.. Look at BOPL n HAPU, though not exceptional, best results in recent times were produced.
I wonder where prices be on Monday.

[The Invisible]

What I can say is profitable plantation companies will close at a higher price next week than the previous week.

[The Invisible]

What I can say is profitable plantation companies will close at a higher price next week than the previous week.

Writing after about 6 weeks. So where are we now on this sector.

The Index has gained by around 6%

What about individual stock prices
As at 22nd Sep 17

BALA + 22%
MAL + 22%
MADU + 33%
MASK + 27%
HAPU + 11%
LDEV + 177%

So are we in a nice little rally ATM?

Today also these stocks reported gains with significant quantity traded.

Now the golden question is where these be at the time of quarterly account release.

[mymoney]

What I can say is profitable plantation companies will close at a higher price next week than the previous week.

Writing after about 6 weeks. So where are we now on this sector.

The Index has gained by around 6%

What about individual stock prices
As at 22nd Sep 17

BALA + 22%
MAL + 22%
MADU + 33%
MASK + 27%
HAPU + 11%
LDEV + 177%

So are we in a nice little rally ATM?

Today also these stocks reported gains with significant quantity traded.

Now the golden question is where these be at the time of quarterly account release.

Great..., Strong fundamental ELPL stile lagging....

[The Invisible]

As I said previously the plantation sector is not done yet. Strong undervalued stocks are finding the true values after more than five years. Great environment for retailers.

[CKActive Member]

Super run invi as you suggested . Wonder why no one except very few talk about it here. 
Any way I am making super profits in plantations and invi is one I should thank. Also thanks to ET for his generous helps.

[The Invisible]

Yes CK. I wish if I talked more on LDEV, MAL, BALA, MASK, UDPL, HAPU, etc here one month back. But time has prevented me from doing so.

I made super profits too. In some places my gains exceeded 200%. The very good example is LDEV.

Will try to analyze the industry going forward from now onwards. We need to look at the sustainability of the commodity price trend too.

[CKActive Member]

Yes CK. I wish if I talked more on LDEV, MAL, BALA, MASK, UDPL, HAPU, etc here one month back. But time has prevented me from doing so.

I made super profits too. In some places my gains exceeded 200%. The very good example is LDEV.

Will try to analyze the industry going forward from now onwards. We need to look at the sustainability of the commodity price trend too.  

Invi I read all your post in other places also. You talked enough about above shares.  Those posts of you helped me lot to pick right plantation shares.. 
(Some narrow minds may find join in other forums as a crime...  ..)

[කිත්සිරි ද සිල්වාTop contributor]

Plantations Sector Earnings Summary - Wednesday, September 27, 2017

[CKActive Member]

Thanks kith

[CKActive Member]

Look bala,  how undervalued with expected earnings ...mal udpl mask also good. I am positive with tpl also this time

[The Invisible]

The super rally continues today as well with LDEV & MAL leading the proceedings today.

[CKActive Member]

The super rally continues today as well with LDEV & MAL leading the proceedings today.

Unbelievable run from both ldev and mal.. My broker continuously saying me to sell both in these level as he feel these 2 are really hot. He never gave me a buying opinion any of these.  Still these 2 are really under valued with expected earnings . But he don't have any clue..  Actually how these broker guys are selected?

[BackstageTop contributor]

Timely call Invi, well done and keep it coming. Thanks.

[Senarath67]

Dear Invisible,Your foresight in plantation sector has helped many in the forum to earn substantial profits from selected shares some of which were not know even as plantation companies.As per world bank predictions,world Tea prices are on the rise up to 2020.Also Sri Lankan tea is getting premium prices in auctions.Greatly appreciate if you could continue to enlighten us on the trend and opportunities in selected shares in the sector.

[කිත්සිරි ද සිල්වාTop contributor]

Plantations Sector Earnings Summary – Friday, November 16, 2017

[Monster]

It clearly indicates plantation companies diversified their sector, particularly with Palm oil are in safe side. For example WATA, ELPL, NAMU.

[lanka]

Thank you, dear Kith