Monday, 14 July 2014
Company Fact Sheet: Central Finance Company PLC - CFIN:N0000
About the company:
Established: 1957 Quoted Date: 1969-01-01 Sector:
Banks Finance & Insurance
Central Finance Company PLC is a Sri Lanka-based company engaged leasing, hire purchase financing, vehicle hire, deposit mobilization, vehicle trading, providing money transfer facilities and the provision of other financial services. The Company operates in eight segments: leasing, hire purchase and advances, Vehicle hire, medical services, Power generation, Manufacturing, Insurance broking, Investments in shares and units and Real estate. The Company's subsidiaries include Central Industries PLC, Central Mineral Industries (Pvt) Ltd., Central Construction and Development (Pvt) Ltd., Central Construction and Development (Pvt) Ltd., Central Homes (Pvt) Ltd., Mark Marine Services (Pvt) Ltd., Central Developments Ltd., CF Insurance Brokers (Pvt) Ltd. and Central Transport and Travels Ltd.
Chairman: Mr Jayampathi Divale Bandaranayake (Non - Executive Director)
Managing Director: Mr E.H. Wijenaike
Managing Director: Mr E.H. Wijenaike
Board of Directors:
Mr G.S.N. Peiris (Finance)
Mr G.S.N. Peiris (Finance)
Mr R.E. Rabukwelle (Marketing and Operations)
Mr A.K. Gunaratne (Group Co-ordination)
Mr D.P. De Silva (Credit)
Mr C.L.K.P. Jayasuriya (Non - Executive Director)
Mr S. Wickramasinghe (Independent Non - Executive Director)
Mr F. Mohideen (Independent Non - Executive Director)
Mr A.N. Fernando (Independent Non - Executive Director)
52 Weeks Low: 171.10 52 Weeks High: 214.20
Average Trading Volume: 13,790
1. On 25/08/2011 Sub Divided Voting Shares in the proportion of 5:1 were started to trading.
History of Bonus Issues & Capitalization of Reserves:
Debentures Listed on CSE:
Total shares in Issue as at 31-03-2014: 104,883,333
Top 20 Shareholders as at 31/03/2014
The percentage of Shares held by the Public as at 31st March 2014 was 49.99%.
The percentage of Foreign Holding as at 30th June 2014 was 11.47%
Quote for the day
"Bull markets go to people's heads. If you're a duck on a pond, and it's rising due to a downpour, you start going up in the world. But you think it's you, not the pond." - Charlie Munger
Sunday, 13 July 2014
Common investment strategies of fund managers
The criteria that mutual fund managers use to select their assets vary widely according to the individual manager. So when choosing a fund, you should look closely at the manager's investment style to make sure it fits your risk-reward profile.
"Investment style is incredibly important because of the way that investing works," says Chris Geczy, director of The Wharton School's wealth management program at the University of Pennsylvania.
"Both risk and return are connected to style. According to current practice portfolio theory, you can optimize a blend of styles for diversification, balancing reward and risk."
Here's a look at a half-dozen common investment strategies among fund managers.
Top-down or Bottom-up investing
Top-down investing strategies involve choosing assets based on a big theme. For example, if a fund manager anticipates that the economy will grow sharply, he or she might buy stocks across the board. Or the manager might just buy stocks in particular economic sectors, such as industrial and high technology, which tend to outperform when the economy is strong.
If the manager expects the economy to slump, it may spur him or her to sell stocks or purchase shares in defensive industries such as health care and consumer staples.
Bottom-up managers choose stocks based on the strength of an individual company, regardless of what's happening in the economy as a whole or the sector in which that company lies.
"The great advantage of top-down is that you're looking at the forest rather than the trees," says Mick Heyman, an independent financial adviser in San Diego. That makes screening for stocks or other investments easier.
And, "When you're right, you're really right," says Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, N.Y.
Of course, managers might be wrong on their big idea. And even if they're right, that doesn't guarantee they'll choose the right investments.
"A good example is gold," says James Holtzman, a shareholder at Legend Financial Advisors in Pittsburgh. "That would make sense for a top-down investor. But what if you're looking at a gold mining stock and the company is being run into the ground? The particular stock could be ready to collapse, even though investing in gold makes sense."
A bottom-up manager benefits from thorough research on an individual company, but a market plunge often pulls even the strongest investments down.
Fundamental or Technical analysis
Fundamental analysis involves evaluating all the factors that affect an investment's performance. For a stock, it would mean looking at all of the company's financial information, and it may also entail meeting with company executives, employees, suppliers, customers and competitors. "You want to analyse management, really understand what's driving the company and where growth is coming from," Heyman says.
Technical analysis involves choosing assets based on prior trading patterns. You're looking at the trends of an investment's price.
Most managers emphasize fundamental analysis, because they want to understand what will drive growth. Investors expect the stock to rise if a company is growing profits, for example.
But fundamentals don't always carry the day. "You can have a period of time where the market moves on technicals," Holtzman says.
Heyman sees power in technical analysis, because he believes an asset's price at any single moment reflects all the information available about it.
The best managers use both fundamentals and technicals, he says. "If a stock has good fundamentals, it should be stable to rising. If it's not rising, the market is telling you you're wrong or you should be focusing on something else."
Dividend investing
As the name suggests, dividend funds buy stocks with a strong record of earnings and dividends. Because of the stock market volatility of recent years, many investors like the idea of a fund that offers them a regular payout.
"Even if the price goes down, at least you're getting some income," says Russ Kinnel, director of mutual fund research at Morningstar. "It's a nice way to supplement income if you're retired."
However, the recent popularity of dividend stocks causes some market pundits to wonder if they’re currently overvalued. Also, beware of funds with extremely high yields. That could be a sign that companies are taking out-sized risk and are headed for declines.
Most experts advise diversifying among investment styles. "In the end, a balanced way of looking at things tends to create fewer errors," Heyman says.
Source:http://www.bankrate.com/
"Investment style is incredibly important because of the way that investing works," says Chris Geczy, director of The Wharton School's wealth management program at the University of Pennsylvania.
"Both risk and return are connected to style. According to current practice portfolio theory, you can optimize a blend of styles for diversification, balancing reward and risk."
Here's a look at a half-dozen common investment strategies among fund managers.
Top-down or Bottom-up investing
Top-down investing strategies involve choosing assets based on a big theme. For example, if a fund manager anticipates that the economy will grow sharply, he or she might buy stocks across the board. Or the manager might just buy stocks in particular economic sectors, such as industrial and high technology, which tend to outperform when the economy is strong.
If the manager expects the economy to slump, it may spur him or her to sell stocks or purchase shares in defensive industries such as health care and consumer staples.
Bottom-up managers choose stocks based on the strength of an individual company, regardless of what's happening in the economy as a whole or the sector in which that company lies.
"The great advantage of top-down is that you're looking at the forest rather than the trees," says Mick Heyman, an independent financial adviser in San Diego. That makes screening for stocks or other investments easier.
And, "When you're right, you're really right," says Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, N.Y.
Of course, managers might be wrong on their big idea. And even if they're right, that doesn't guarantee they'll choose the right investments.
"A good example is gold," says James Holtzman, a shareholder at Legend Financial Advisors in Pittsburgh. "That would make sense for a top-down investor. But what if you're looking at a gold mining stock and the company is being run into the ground? The particular stock could be ready to collapse, even though investing in gold makes sense."
A bottom-up manager benefits from thorough research on an individual company, but a market plunge often pulls even the strongest investments down.
Fundamental or Technical analysis
Fundamental analysis involves evaluating all the factors that affect an investment's performance. For a stock, it would mean looking at all of the company's financial information, and it may also entail meeting with company executives, employees, suppliers, customers and competitors. "You want to analyse management, really understand what's driving the company and where growth is coming from," Heyman says.
Technical analysis involves choosing assets based on prior trading patterns. You're looking at the trends of an investment's price.
Most managers emphasize fundamental analysis, because they want to understand what will drive growth. Investors expect the stock to rise if a company is growing profits, for example.
But fundamentals don't always carry the day. "You can have a period of time where the market moves on technicals," Holtzman says.
Heyman sees power in technical analysis, because he believes an asset's price at any single moment reflects all the information available about it.
The best managers use both fundamentals and technicals, he says. "If a stock has good fundamentals, it should be stable to rising. If it's not rising, the market is telling you you're wrong or you should be focusing on something else."
Contrarian investing
Contrarian managers choose assets that are out of favour. They determine the market's consensus about a company or sector and then bet against it.
The contrarian style is generally aligned with a value-investing strategy, which means buying assets that are undervalued by some statistical measure, says Wharton's Geczy.
"In the long run, value has beaten growth in assets around the world, though during certain periods that's not true," he says. "The contrarian style generally rewards investors, but you have to choose the right assets at the right time."
The risk, of course, is that the consensus is right, which results in wrong bets and losses for a contrarian manager.
The contrarian style is generally aligned with a value-investing strategy, which means buying assets that are undervalued by some statistical measure, says Wharton's Geczy.
"In the long run, value has beaten growth in assets around the world, though during certain periods that's not true," he says. "The contrarian style generally rewards investors, but you have to choose the right assets at the right time."
The risk, of course, is that the consensus is right, which results in wrong bets and losses for a contrarian manager.
Dividend investing
As the name suggests, dividend funds buy stocks with a strong record of earnings and dividends. Because of the stock market volatility of recent years, many investors like the idea of a fund that offers them a regular payout.
"Even if the price goes down, at least you're getting some income," says Russ Kinnel, director of mutual fund research at Morningstar. "It's a nice way to supplement income if you're retired."
However, the recent popularity of dividend stocks causes some market pundits to wonder if they’re currently overvalued. Also, beware of funds with extremely high yields. That could be a sign that companies are taking out-sized risk and are headed for declines.
Most experts advise diversifying among investment styles. "In the end, a balanced way of looking at things tends to create fewer errors," Heyman says.
Source:http://www.bankrate.com/
Quote for the day
“A great trader is like a great athlete . You have to have natural skills, but you have to train yourself how to use them.” – Marty Schwartz
Saturday, 12 July 2014
What Is An Initial Public Offering (IPO)
When a company is ready to sell shares of its stock to the public, thereby turning its ownership over to public investors, it must undergo the process of an IPO. This process carries a number of advantages and disadvantages, as well as significant costs to the formerly private company. I created this infographic to take you through the process and help you understand why IPOs create major waves in the investment world.
![What is an Initial Public Offering (IPO) [infographic]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tXjkLFiWLMCSgihVRPS0_pgr04ryz4BikuxXzkJ0k0XtJEkvtFOWbzyQeDiv5YLABSA0g3B6VlQTUWB355g_ThqTdNYYmIOAbw5mueUZj-PgLWkpZB1mH5NQPXMFtMuipuWjK1aw=s0-d)
Conclusion:
Despite the significant costs of issuing an initial public offering, taking a company public holds many advantages. These range from diversifying the equity base of the company, to holding greater prestige in the public eye and thereby attracting new investors and better employees. Other risks like being forced to divulge profitable trade secrets may hold a private company back from wanting to go this route, but for early investors in a successful enterprise, the IPO usually means a big payday.
Conclusion:
Despite the significant costs of issuing an initial public offering, taking a company public holds many advantages. These range from diversifying the equity base of the company, to holding greater prestige in the public eye and thereby attracting new investors and better employees. Other risks like being forced to divulge profitable trade secrets may hold a private company back from wanting to go this route, but for early investors in a successful enterprise, the IPO usually means a big payday.
Source: http://www.timothysykes.com/
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