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Sri Lanka Equity Forum » Stock Market Talk » SAMP - ABSORBING REAL VALUE

SAMP - ABSORBING REAL VALUE

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1 SAMP - ABSORBING REAL VALUE on Tue Oct 03, 2017 1:35 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Long waited price appreciation of SAMP has just begun though it would have happened months back. There is high chance of reaching the lowest price level of Rs.336 as FT's forecast. Those who hold SAMP shares painfully would be overjoyed.. Good Luck

2 Re: SAMP - ABSORBING REAL VALUE on Tue Oct 03, 2017 10:30 pm

Harry82

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Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
One month target is above Rs 360.00

3 Re: SAMP - ABSORBING REAL VALUE on Wed Oct 04, 2017 9:01 am

Harry82

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Laughing Laughing Laughing

4 Re: SAMP - ABSORBING REAL VALUE on Wed Oct 04, 2017 9:38 am

EquityChamp

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Moderator
Sampath bank should move towards its real intrinsic value. At least we can expect a price target of 350/- in medium term.

5 Re: SAMP - ABSORBING REAL VALUE on Wed Oct 04, 2017 11:05 am

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Correct. Real demand for SAMP is to come. 
Order book movement reveals continuous attempts to acquire the share at low level.

6 Re: SAMP - ABSORBING REAL VALUE on Mon Oct 09, 2017 1:38 pm

Harry82

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sampath Bank has summoned an extraordinary general meeting on Oct. 20 to obtain shareholder approval for a one for six rights issue at a price of Rs. 245 per share to infuse approx. Rs. 7.6 billion zero cost equity funds into its books.

In a circular to shareholders, the bank said that it was intended to issue 31.03 million new voting shares under the rights issue which analysts noted has been priced well below the prevailing market price of Sampath shares which closed on Friday at Rs. 326.

"Sampath follows Commercial Bank and HNB in floating a rights issue to meet Basel III regulations," an analyst said. "The gap between the rights price and the then market price of the HNB share was the narrowest in the two issues which were fully subscribed barring the HNB non-voting shares where much of the slack was later taken up."

"Shareholders who applied for additionals over and above their entitlements were satisfied to a fair degree by Commercial Bank and less so by HNB," the analyst said. "Give the recent appreciation of the Sampath share, full subscription will not be a problem."

Sampath said that fractional shares will not be allotted. Such shares would be pooled together and allotted to shareholders applying for additionals "on a reasonable basis," the circular said.

Sampath made a profit of Rs. 5.7 billion in the first half of this year at company level and Rs. 5.87 billion at group level.

The circular to shareholders said the bank intended to utilize the total proceeds of the rights issue to expand its loan book over a period of three to six months of the allotment of the shares and the funds will be lent in the normal course of business.

"The rights issue will provide an opportunity for the existing shareholders to invest in ordinary voting shares of the company at a discount of Rs. 55.24 compared to the net asset value of Rs. 300.24 as at June 30,2017," it said.

"Consequently they will be entitled for future dividends and possible market value appreciation on the shares."

Given the current demand for credit in the country, the possibility of not being able to lend the proceeds of the rights issue is "very remote," it added. "Even in the worst case scenario, the funds could be invested in government securities which are readily available for investment."

In June, July and August the Sampath share traded at a high of Rs. 302 and a low of Rs. 266.20 closing in Aug. at Rs. 301.30. The share is liquid with over 7.6 million shares traded in the three months. Sampath closed at Rs. 326 on Friday.

Mr. Dammika Perera’s Vallibel One is the bank’s top shareholder with 14.95%. Mr. YSHI (Indra) Silva follows with 9.99% and the EPF is the third biggest with 9.97%.

Sampath paid a cash dividend of Rs. 4.75 per share and a scrip dividend worth Rs. 14 for the year ended March 31, 2017. Dividends during the previous two years were Rs. 6 cash and Rs. 7 scrip and Rs. 5 cash and Rs. 6 scrip.

7 Re: SAMP - ABSORBING REAL VALUE on Mon Oct 09, 2017 11:38 pm

lakymahesh


Equity Analytic
Equity Analytic
The real question would be at what levels SAMP would settle after the right issue. Wht ever said and done this price appreciation is only their until the right issue. Once the new shares hit the market those who bought it for 245/- might go fo ra quick buck and that would result in a sudden drop of the share.
I personally assume this would come down some where at Rs 280/-,what would you think ? let us know pls.

8 Re: SAMP - ABSORBING REAL VALUE on Tue Oct 10, 2017 3:03 am

wisdom


Stock Trader
SAMP is one of the best shares with low PE and high growth. Since rights XE dates pretty close to the period of quarterly financial reports comes out we can’t expect drop in price. Mostly they will report EPS 18 or more for this quarter as well . After the right issue there is less chance of drop down the share value beyond the average with rights. People who is investing long run with SAMP of course are the winners.

9 Re: SAMP - ABSORBING REAL VALUE on Wed Oct 11, 2017 6:37 pm

Captain


Senior Equity Analytic
Senior Equity Analytic
Equity Champ is Correct

10 Re: SAMP - ABSORBING REAL VALUE on Fri Oct 13, 2017 6:17 am

Harry82

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
today start next run?

11 Re: SAMP - ABSORBING REAL VALUE on Fri Oct 13, 2017 10:08 am

thankrishan


Manager - Equity Analytics
Manager - Equity Analytics
Theoretically this should fall to 335 (Approx) after Right Issue. But gradually increase due to the fundamentals.

12 Re: SAMP - ABSORBING REAL VALUE on Sun Oct 15, 2017 5:44 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@thankrishan
Can you please present the computations done for SAMP possible share price after rights issue happened.
This is for our knowledge base only. Thanks

13 Re: SAMP - ABSORBING REAL VALUE on Mon Oct 16, 2017 6:25 am

samcader


Manager - Equity Analytics
Manager - Equity Analytics
6   SHARES   @   350  PLUS  I  SHARE  @  245   equals  Rs   2345?-  divided  by  7  equals  335/-

14 Re: SAMP - ABSORBING REAL VALUE on Mon Oct 16, 2017 9:21 am

thankrishan


Manager - Equity Analytics
Manager - Equity Analytics
@samcader wrote:6   SHARES   @   350  PLUS  I  SHARE  @  245   equals  Rs   2345?-  divided  by  7  equals  335/-

Yes  Very Happy

15 Re: SAMP - ABSORBING REAL VALUE on Mon Oct 16, 2017 11:10 am

TARGET


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Rusi Captain 
Don't forget the name Very Happy

16 Re: SAMP - ABSORBING REAL VALUE on Mon Oct 16, 2017 11:43 am

niru


Manager - Equity Analytics
Manager - Equity Analytics
with the buy transaction cost your ex-rights average will be 338.36

PriceQtyNettEX-Price
      350.00                 6        2,123.52
      245.00                 1            245.00
                7        2,368.52      338.36

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