You are partly right but if you own PA you are getting 3% dividend. We think WZ1 likely to have something good going forward. Note that the Group CEO is buying WA, WB and PA. Very unlikely he is buying these securities especially the warrants if he expect bad news coming !

If you are smart enough, you will not convert the PA to mother as the PA is more senior and has 3% dividend and therefor should be priced or valued higher where else Mother for now has not been paying any dividend and junior to PA. Only convert PA if mother are paying much higher dividend than PA.

If you have PA, the Preference Share with 3% dividend, to covert you just convert it 1 PA to 1 mother, no need to pay any additional cash. The exercise price of 0.11 was the price paid earlier to buy one PA so now you just need to surrender your PA for mother 1 to 1.

The CEO is now buying WA ! He perhaps rightly prefer to buy PA as exposure to equity instead buying directly the mother as PA is significantly undervalued compared to mother.

“Price is what you pay. Value is what you get.”

The 1,200 MW Hai Duong IPP had managed to secure a very good deal with the Government of Vietnam with very good sets of guarantees not likely to be obtained again by any new IPP.
The IRR for the project is "officially at 12%" and with a high gearing of say 75/25 debt to equity ratio, you can quickly get the return to equity to shareholders ! What more there are no longer risks to construction delays and commissioning as the plant not only managed to be be successfully commissioned for operation but also completed ahead of schedule.
There are very few residual risks left to the plant owner apart from basically making sure the plant availability is kept above a certain guaranteed level. Most of other risks are guaranteed by the off taker and the government.
Jaks Management did mention that with its 30% current interest in the IPP will bring in a recurring RM 720 m per year over the next 25 year. Don't forget Jaks has a call option for additional 10% interest in the IPP.
Happy investing and Selamat Hari Raya Idulfitri and happy investing !

The company CEO have been collecting PA and WB. The free money by buying PA will be very soon disappear off the table !

PA should be valued higher than mother as PA has 3% yearly dividend attached.

Nothing more to pay for PA conversion, not 11 sen which you have paid for the PA. Just convert PA to WZ1 Ordinary 1 for 1 without paying additional cash. But PA should have higher value as it has 3% preferential dividend

Can convert directly one to one without any additional cash.

The conversion price of the ICPS shall be an amount equivalent to the issue price of the ICPS. Each ICPS is convertible into 1 new Share (“Conversion Ratio”). For the avoidance of doubt, no additional cash payment is required for such conversion of the ICPS by the ICPS holders.

You mean those who sell today at 84.5 sen got conned ? Yes then you are absolutely right, ceelo87 !

Warrant B exercise price is 16 sen. Say WB now at 12 sen then your cost of WZ Ordinary will be 28 sen. Far higher than WZ! current trading price of about 20 sen

Availability to keep minimum capacity for operation. To operate or not, not dependent of IPP but dependent of grid operator. Capacity payment not only enough cover debt payments but also a certain level of return on the project.

The basic problem is not so much about excess energy but transmission issues and do not concern Jaks IPP . Any how the IPP will not be much affected at all as virtually most of the payment to be received are guaranteed as long as the IPP can maintain the capacity availability as mandated under PPA.

Easy money: If you have Ordinary shares, sell them then buy PA. PA should trade at premium to Ordinary as it is a Preference Share with 3% dividend and convertible to ordinary at 1 : 1
Or just buy PA as it should trade at a premium to ordinary.

TheGardener, I just can't agree more with your statement!

Most commodities including crude oil are on the way up.

Big jump in price with accompanying huge volume today. A good sign.

Once the sky is open for travel by air is open, smart investors would already exit by then !

Investors look to the future and all known events were already discounted.

The 45% owned Thai Air Asia will be soon listed on the Stock Exchange of Thailand via IPO. This will be definitely a positive event for Air Asia Group going forward.

Pure dilution of share values ?
The shares issued for the purchase of the remaining 20% interest in Biglife from Aima was at RM 1.20, much above the current AA share price.

Market is forward looking and discounts all known facts,

Some one exercise WC for 14.48 m of Jaks at the price of 49 sen, Assuming the current price of WC at 33 sen, it implies that the cost of acquiring Jaks via this route is at 82 sen. Difficult to understand why that person/entity has chosen to buy via warrant conversion instead of directly buying Jaks at only around say 63 sen only! Or may be they are buying Jaks from the market too on top of via this conversion?
Are we expecting some big price movement of Jaks any time soon?

Fully agreeable with you Pinky. Dividend is real but profit is only an accounting concept and capital value/appreciation solely dependent on the market. Jaks has a very profitable IPP in Vietnam that will surely generate robust profit and cashflow for 25 years albeit it owns only a minority interest of only 30% but with an option to increase to 40%. Very likely no cash distribution from in the early years of operation as the IPP needs to, among others, pay down debts and provide working capital for the operation.
The return on the IPP is very attractive and virtually guaranteed provided no failure in its operation. It is only in the latter years the project owner will have huge cashflow for distribution. Those who intend to invest in Jaks for long term will be very well rewarded provided Jaks will not again having money loosing projects going forward. New IPPs even in Vietnam will not likely be as attractive in terms of both returns and terms of contracts.

No reason for shareholders to sell at 60 sen as it is far below intrinsic value and on top the counter will continue to be listed.

If Directors are not disposing their shares obtained very cheaply via ESOS, RM 1.80 target will be reached even sooner. Nevertheless, Cypark at the current price is definitely grossly undervalued .

Rights Issue is better and fairer to all shareholders than Private Placement as the price of shares issued under PP are at a discount to the market price and the shares are placed only to selected people only.
The shareholders can alway sell their rights to the market if they choose not to subscribe to their entitlement

Very important to understand the industry AA is in and its business model in order to make an estimate on the valuation of AA as a running concern going forward. Some understanding of accounting and finance are necessary as well to give you a better picture of AA business situation. Don't just take the face value of AA being a negative equity company as I have already mentioned there are great well known companies that similarly have negative equity. One more thing: the two well known investors that have recently taken interest in AA are not fools!

Happy investing.

What is there as so many people worry about Air Asia having negative shareholder equity. Many well known great companies such as McDonald, Starbuck and Phillip Morris have negative equity too but they still remain great. Similarly if you understand the business nature of Air Asia you have nothing to worry about and it will still be a great company. The most valuable assets of Air Asia are not written down in the balance sheet and the main liabilities are not bank loans but lease obligations.
Use todays opportunity to invest in Air Asia as many believe Air Asia has been a great company in the past and will be greater company going forward.

Again Directors are buying via ESOS at only 59.5 sen ! at the expense of other shareholders. Why even non-exec directors can get a large amount of shares cheaply via ESOS ?

Invest for the future, not the past and not even the present as these are already discounted.

O& G counters such as Barakah and Scomi have shot up even though they are PN17 status ! When is M&G turn ?

You are right annonymous !

A rare opportunity to make good gains with very little downside risk but with huge upside !

No worry AA will come out well and likely will make more money than before as it is transforming itself into a new giant.

annousmous01, as AA a recovery stock therefore no risk buying even short squeeze do not happen but if it happen !!!!

Collect and just wait for the short squeeze like GameStop !

Time to collect !

Financing for Cypark is not a problem. Cypark has just issued RM 500 m Sukuk for renewable energy projects.

Airlines and leisure related companies in the US were up yesterday due to high pent-up demand caused by the pandemic. Similar things could likely to happen here as well.

Congratulation to CYpark for getting waste management which include Waste to Energy project in Johor in collaboration with PDT. Waste management is far more lucrative than solar farms as the later are now far too competitive as many players can easily enter that biz which do not require high technology and much experience to build and operate solar farms.

Syabas Cypark !!!

Most of the ports worldwide are congested as the people are buying more stuff during the pandemic. We are buying more computers, gadgets and furnitures for work from home and various other goods for stay at home. We all know that there tremendous shortage of containers as more and more goods are being shipped out from producers to consumers. MMC are definitely profiting from this increase of port usage.
Any how MMC at current prices are still trading below its intrinsic value especially for a company that own and operated many strategic assets.

Directors cum major shareholders selling down shares, very underpriced ESOS at 59.5 sen and now the company failed even to get shortlisted for the LSS4, what a bearish combination !

Congratulation to Jaks for bidding for 50 mw large scale solar project, a relatively big project for Malaysia. This may attract a lot attention to Jaks going forward.

Directors/major shareholders are selling the shares to buy them back via repriced ESOS at only 59.5 sen. Very smart thing for them to do, free easy money !

Invest for the future, not the past !

@ beluga, a good writeup to add to our understanding of port business.

KYY has changed to Untie from Uncle ???

Ha ha ha , some one trying to push down MMC using a very 'famous' name !