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Sri Lanka Equity Forum » Stock Market Talk » Is AINV, Goes Against Its own Right Issue saga?

Is AINV, Goes Against Its own Right Issue saga?

Go down  Message [Page 1 of 1]

Miss-Sangeetha

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
As the AINV’S rights issue is in pending, AINV’S main stake holder G.H.A.A.Shabbir is seems to downloading AINV @ cents 60 on greedy retailers. By selling, G.H.A.A.Shabbir is not going to lose his main share holder position or not going to dispose his stake totally and exit from AINV.

With the unexpected twist/development in AINV, it is seems to be contradicted to the speculation that AINV is going to push the price above their right issue price. Now AINV is seems to be not bothered about their right issue success or AINV’S plight at CSE.

One Doctor and client of crap shares, who bought AINV@ Rs. 1.10 above the CSE trading price through crossing in year 2014, thank god he is now inactive due to his old age and he now not in good terms with AINV, otherwise he will be on the forefront to buy the AINV again at high price now.

In the case of AINV, applying financial or fundamental theory is nonsense, only logical approach is applicable.

When the cash trapped AINV announced the big proportion of dividend compare to AINV’S NBVS in last 26th Sept 2016, I had mentioned that their dividends main focus point is right issue announcement later to pull out bigger money from investors, but the right issue came on 28th Feb 2017. To facilitate this earlier they even split the AINV shares.

Now AINV realized that they can’t elevate the AINV’S price at CSE to push up above the AINV’S right issue price.

Through their dividend distribution, cash trapped AINV further pushed into difficulties, now they understand that they can’t success their right issue, through the AINV’S dividend bait.

If they use the colossal sum, now collected through selling AINV @ cents 60 to clear the AINV’S selling order bid at cents 70, cents 80, cents 90 or even above one rupees at CSE order book, those retailers who bought the AINV @ cents 60 now, will quickly profit out this, because all the investor are very well know about the AINV’S past track record.

Due to this AINV can’t success in their action and further lose of fund is possible to those behind the AINV’S possible play.

Now AINV’S main stakeholder is in his selling spree. Main buyers are greedy retailers with right issue price target speculation or imagination. Not big investors or those following the fundamentals are buying.
This AINV’S main stakeholder’s selling is similar to PCH main stakeholder S.H.M.Rishan selling in year 2014. During that time most of the retailers thought, PCH going to use that fund collected through downloading PCH@ cents 50 to push up the PCH price,

but all the retailers later lost their money and exit from CSE and now all can see the plight of PCH.      

Now they are targeting the greedy retailer @ cents 60. When the retailers total buy  order quantity bid is reducing at cents 60 level, suddenly those selling at cents 60 is turning as buyers at cents 70 for short period of time.







Thus they enticing/attracting the retailers to line up at cents 60, until accumulate with big total buy order quantity, then suddenly big amount of AINV were generously  downloaded on those greedy lined up at cents 60 (See the AINV’S 30/05/2017 trade pattern also)

AINV may go up or go down depending on the idea of those behind the AINV, but final loser are greedy retails gurus those running behind AINV.     

Eugine Fernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Miss-Sangeetha wrote:As the AINV’S rights issue is in pending, AINV’S main stake holder G.H.A.A.Shabbir is seems to downloading AINV @ cents 60 on greedy retailers. By selling, G.H.A.A.Shabbir is not going to lose his main share holder position or not going to dispose his stake totally and exit from AINV.

With the unexpected twist/development in AINV, it is seems to be contradicted to the speculation that AINV is going to push the price above their right issue price. Now AINV is seems to be not bothered about their right issue success or AINV’S plight at CSE.

One Doctor and client of crap shares, who bought AINV@ Rs. 1.10 above the CSE trading price through crossing in year 2014, thank god he is now inactive due to his old age and he now not in good terms with AINV, otherwise he will be on the forefront to buy the AINV again at high price now.

In the case of AINV, applying financial or fundamental theory is nonsense, only logical approach is applicable.

When the cash trapped AINV announced the big proportion of dividend compare to AINV’S NBVS in last 26th Sept 2016, I had mentioned that their dividends main focus point is right issue announcement later to pull out bigger money from investors, but the right issue came on 28th Feb 2017. To facilitate this earlier they even split the AINV shares.

Now AINV realized that they can’t elevate the AINV’S price at CSE to push up above the AINV’S right issue price.

Through their dividend distribution, cash trapped AINV further pushed into difficulties, now they understand that they can’t success their right issue, through the AINV’S dividend bait.

If they use the colossal sum, now collected through selling AINV @ cents 60 to clear the AINV’S selling order bid at cents 70, cents 80, cents 90 or even above one rupees at CSE order book, those retailers who bought the AINV @ cents 60 now, will quickly profit out this, because all the investor are very well know about the AINV’S past track record.

Due to this AINV can’t success in their action and further lose of fund is possible to those behind the AINV’S possible play.

Now AINV’S main stakeholder is in his selling spree. Main buyers are greedy retailers with right issue price target speculation or imagination. Not big investors or those following the fundamentals are buying.
This AINV’S main stakeholder’s selling is similar to PCH main stakeholder S.H.M.Rishan selling in year 2014. During that time most of the retailers thought, PCH going to use that fund collected through downloading PCH@ cents 50 to push up the PCH price,

but all the retailers later lost their money and exit from CSE and now all can see the plight of PCH.      

Now they are targeting the greedy retailer @ cents 60. When the retailers total buy  order quantity bid is reducing at cents 60 level, suddenly those selling at cents 60 is turning as buyers at cents 70 for short period of time.







Thus they enticing/attracting the retailers to line up at cents 60, until accumulate with big total buy order quantity, then suddenly big amount of AINV were generously  downloaded on those greedy lined up at cents 60 (See the AINV’S 30/05/2017 trade pattern also)

AINV may go up or go down depending on the idea of those behind the AINV, but final loser are greedy retails gurus those running behind AINV.     
Fantastic explanation, thank you Miss. Sangeetha, could you please give an idea about Kzoo is it worth to buy at present rate before rights. I gratefully appreciate & waiting for your explanation. Thanks.

CSE VIJAY


Manager - Equity Analytics
Manager - Equity Analytics
Again and again AINV doing the same robbery

Neluka Karannagoda


Manager - Equity Analytics
Manager - Equity Analytics
Dear Miss Sangeetha,

Please tell me clearly should i have to sell my shares that buy at 0.70 Rs or not. Because by following your comments i save lot of my money from scrape shares like AINV.N. Please give your direct answer and if you were i what should you do now ?

I have 500000 shares of AINV.N at the average bought price of 0.68 RS.

Thank you

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Neluka Karannagoda wrote:Dear Miss Sangeetha,

Please tell me clearly should i have to sell my shares that buy at 0.70 Rs or not. Because by following your comments i save lot of my money from scrape shares like AINV.N. Please give your direct answer and if you were i what should you do now ?

I have 500000 shares of AINV.N at the average bought price of 0.68 RS.

Thank you

Till Ms. Sangeetha replies, Neluka this is what I would do in your situation

Sell 500,000 @ say -/60 = Rs. 300,000/-
Loss(-/10 cents @ 500,000) = Rs. 50,000/-

Reinvest Rs. 300,000 say with a fundamentally strong yet hugely undervalued stock such as Royal Ceramics to recover the loses and gain within the next 2 years

Say you buy at 130/-, = 2,300 shares of Royal Ceramics
You will be entitled to Rs. 4/- dividend they have declared
So you will recover Rs. 9,200/- (4@2,300/-) in July 2017 (excluding WH tax)

In the next 2 years you will most probably get 2 annual dividends of say Rs. 8/-
Rs. 16/- @ 2,300= Rs. 36,800/-

RCL Net Asset Value is expected to be around Rs. 190/- ending 2017/18 and 225/- ending 2018/2019

You can easily sell when there is run on RCL shares at the right time

Let's assume you sell it at 175/- @ 2,300 at any point = Rs. 402,500/-

Biggest mistake you can make is to try and recover the loss in a short span. Concentrate for a minimum of 2 years for the recovery

If you doesn't like RCL you will do well by investing in a yet another fundamentally
strong share such as Sampath Bank to recover your loses within the next 2 years

I have not accounted Present Values of Future Earnings in my calculations

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Adam Investments has made a very late disclosure to CSE about some significant share dealings by the spouse of one of the zdirectors,mMs. Danushya Gulamhusein. Very interesting disclosure indeed.

Let's hope SEC will take appropriate action as on face value of the late disclosure there appears to be clear manipulation to drive the share price up

CSE VIJAY


Manager - Equity Analytics
Manager - Equity Analytics
The disclosure made by Mrs.Danushya Gulamhusein, an executive director of Adam Investment. If anyone sees that, first it is appear to be transaction within one family members in recent days.

Actually purchase took place mostly in January 10, declaring the transaction by Mrs.Danushya Gulamhusein on behalf of her spouse, almost 6 month later now, saying the reason is an oversight.

Selling of AINV took place mostly in later part of the May month; buyers are innocent victim at CSE, here buyers are not from Gulamhusein family member.

I think that the present downloading of AINV will be disclosed in coming December due to an oversight.

If they declare now the Pigs and wild boars now falling on the trap will realize and runaway is it?                                                               

Eugine Fernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@CSE VIJAY wrote:The disclosure made by Mrs.Danushya Gulamhusein, an executive director of Adam Investment. If anyone sees that, first it is appear to be transaction within one family members in recent days.

Actually purchase took place mostly in January 10, declaring the transaction by Mrs.Danushya Gulamhusein on behalf of her spouse, almost 6 month later now, saying the reason is an oversight.

Selling of AINV took place mostly in later part of the May month; buyers are innocent victim at CSE, here buyers are not from Gulamhusein family member.

I think that the present downloading of AINV will be disclosed in coming December due to an oversight.

If they declare now the Pigs and wild boars now falling on the trap will realize and runaway is it?                                                               
WE WILL HAVE TO WAIT AND SEE WHAT KIND OF ACTION SEC WILL TAKE ON THIS DAY LIGHT MANIPULATION?

nirowat


Manager - Equity Analytics
Manager - Equity Analytics
Pretty amazing stuff really
If I am not mistaken the so called spouse is the ultimate owner of AINV though not on the board
That means the owner has been playing and the letter doesn't mention that
Now she resign, seemingly falling on her sword
This is the legacy of MR government with regards to CSE
The problem we have is that all politicians are so sinful that any rogue method is protected and made to fatten their own bellies rather than serving the public


EquityChamp

avatar
Moderator
@DS Wijesinghe wrote:
@Neluka Karannagoda wrote:Dear Miss Sangeetha,

Please tell me clearly should i have to sell my shares that buy at 0.70 Rs or not. Because by following your comments i save lot of my money from scrape shares like AINV.N. Please give your direct answer and if you were i what should you do now ?

I have 500000 shares of AINV.N at the average bought price of 0.68 RS.

Thank you

Till Ms. Sangeetha replies, Neluka this is what I would do in your situation

Sell 500,000 @ say -/60 = Rs. 300,000/-
Loss(-/10 cents @  500,000) = Rs. 50,000/-

Reinvest Rs. 300,000 say with a fundamentally strong yet hugely undervalued stock such as Royal Ceramics to recover the loses and gain within the next 2 years

Say you buy at 130/-, = 2,300 shares of Royal Ceramics
You will be entitled to Rs. 4/- dividend they have declared
So you will recover Rs. 9,200/- (4@2,300/-) in July 2017 (excluding WH tax)

In the next 2 years you will most probably get 2 annual dividends of say Rs. 8/-
Rs. 16/- @ 2,300= Rs. 36,800/-

RCL Net Asset Value is expected to be around Rs. 190/- ending 2017/18 and 225/- ending 2018/2019

You can easily sell when there is run on RCL shares at the right time

Let's assume you sell it at 175/- @ 2,300 at any point = Rs. 402,500/-

Biggest mistake you can make is to try and recover the loss in a short span. Concentrate for a minimum of 2 years for the recovery

If you doesn't like RCL you will do well by investing in a yet another fundamentally
strong share such as Sampath Bank to recover your loses within the next 2 years

I have not accounted Present Values of Future Earnings in my calculations

That is a good advise DS. Really appreciate.

Neluka Karannagoda


Manager - Equity Analytics
Manager - Equity Analytics
Dear All

Thank you very much for your valuable ideas.

Thanks again

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