Did u mean WA price is 82 sen?

See the Company's Abridged Prospectus @ 20.May, page-41, Note-3, the Company has calculated their NA per share based on WA priced estimated at 83 sen, so the WA's market price should be about 80+/-, unless the mother shares' price is far below Rm1.59.

My account already credited with new RI + WA shares.

Maybe Brexit fears also play a part? Since Prolexus exports nearly 20% of its products to EU.
We will know the result of Referendum by next Friday.

http://klse.i3investor.com/blogs/ongmali/98456.jsp

Price battered by some who sold ahead of RI in anticipation of share dilution next week... :-|

Tech correction should be over by tomorrow and then to resume uptrend...

Yes, not surprised at all, RSI-9 is now 100, short-term looks overbought! Hopefully SMA-50 Crossed at Rm0.855 will become a strong support level.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5122289

The RI is oversubscribed by 37.75%, looks like investors are positive on their expansion plan.

Looks like normal profit taking after 8 sessions of run up, especially after this morning +2.5sen up, and RSI-14 was nearly 80 (78 closed).

Price closed above SMA-50 (Rm0.852), MACD still bullish, let's see how it will perform tomorrow.

Consolidate for next week's run up before listing of new shares and warrants.

If the Viagra boost get from Nestle, it will "pierce" thru Rm1.00... :-D

Be patient, Viagra need some time to get boost... :-)

Very quiet today, Friday phenomena?

Not old news, court case still going on, the verdict will have a major financial impact, either + or - in big sums of money!

Another point on Prolexus' expansion plan, they have stated in their RI's Prospectus that their factories are currently running at full steam, operating at more than 90% capacity (technically, 90~95% is as good as Full Capacity, because of inevitable machinery downtimes and workers stoppage), and they are now facing growing demands from key customers as seen in the higher Consumer Spending, they must urgently expand their capacities to take in more purchase orders, or else they will have to turn down orders and lose their market share, or even lose their customers to their competitors!

rizerlee's concern of oversupply with manufacturers expanding their production capacities is valid, and need to be considered before making any decisions to invest.

I think this is a question of "The Glass is Half-Full or Half-Empty"? In terms of Consumer Products, there are always competitions in a free market economy, especially for garment industry which do not need rocket science technology, or need very high entry capitals, or highly specialized-killed personnel, etc. When manufacturers such as Ramatex are also expanding, that means others beside Prolexus have the same forecast that a big market expansion is coming soon, so those with foresight would expand their capacities in order to capture a bigger slice of the big cake. This is a very plausible move, not just sit there and do nothing about it because of worries about more competitions and oversupply.

I am expecting a better QoQ results in this coming Q3 report, if no major surprises, for 2 reasons:

(a) Stronger USD in Q3-2016 ($1 : Rm4.05, avg.) versus Q3-2015 ($1 : Rm3.63, avg.), or +11.5%, this should increase the Profit Margins of export counters, such as Prolexus with ~60% products exports to US Market, plus another ~20% exports to EU Market.

(b) Higher US Consumer Spending in the recent months, the April month has recorded the highest consumer spending since the 2009 Crisis. This should be quite positive on Prolexus revenues.

http://www.reuters.com/article/us-usa-economy-idUSKCN0YM1HC

OK, thanks...

Why no news on the Nestle case? In the past months always announced even if case deferred?

Anybody know any latest updates?

I this calm before a storm? Today SA High Court may give verdict on the Nestle case, the Court fixed 6 June 2016 as either a next case management date or decision date:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5090169

Rm1.20 @ 1:1 ratio.

Ya... that's quite a good guesstimate...

-- If post 20.June, mother's prices go down back to ~rm1.40, warrants maybe about rm0.55~0.65,
-- If mother can maintain at ~rm1.50 level, then warrant prices maybe about rm0.70~0.75,
-- If mother can go up back to ~rm1.60 level (TERP ex-price), then rm0.80~0.90 is quite possible.

u r welcome...

Listing Date of the Rights Securities including warrants: 20 Jun 2016

The following should be considered by Prolexus current and potential investors:

1. US consumers high spending is very favorable for consumer stock Prolexus which exports 60% of its products to US.
2. Furthermore, the rising US interest rates in the 2H-2016 should make USD even stronger vs RM (unless crude oil prices rebound strongly), which will bring in higher revenues and better profit margins to Prolexus in terms of RM.
3. The purpose of the ongoing rights issue is to raise capital to build two new factories to cater for higher demands from their existing clients, the new factory in Vietnam will increase the total production capacities by 30~40% initially. Their business is expanding rapidly since the last few years. It is a growth stock with good potential.
4. The new factory in Vietnam will take advantage of Vietnamese lower labour costs, cheaper land cost, and Vietnam's TPPA status will save them import duties for US market which will make their product pricing more competitive.

IMHO, the current drop in Prolexus prices is unjustified albeit in very thin traded volumes. This stock is not suitable for traders or contra players.

Ya... poor liquidity of Prolexus shares is negative for their share prices... Hopefully the new RI listing will improve liquidity to some extend...

Read this latest news below:

http://www.thestar.com.my/business/business-news/2016/05/28/yellen-says-rate-rise-probably-appropriate-in-coming-months/

This should be very positive for export counters, especially Prolexus with 60% revenues from US market. Barring unforeseen surprises, stronger USD and better US consumer sentiments, both should help to increase Prolexus RM revenues and profits in the coming Q reports...

I think after the ex-RI, the Prolexus shares were under selling pressure bcos many holders sold their mother shares to raise more funds to subscribe the RI. Whereas the OR was also under selling pressure from OR holders who didn't wish to take up the RI, either due to bad market sentiments, lack of funds, or from traders who didn't want to invest for mid to long-term.

In fact the major shareholders accumulated a substantial amount of Prolexus shares before the RI got approved, their buying prices are mostly between Rm2.10~2.30 during the price downtrend, so conspiracy seems very unlikely...

In my opinion, the previous Qs good results were mainly due to strong USD exch. rates at above Rm4.0, as nearly 60% of Prolexus revenues come from US market, plus 19% from EU market...

Last Q results dropped because of stronger ringgit, thus affecting most export orientated counters, their prices all declined, not just Prolexus prices.

Each box has a limited no. of characters, maybe ur comments hv exceeded this limit?

Maybe u can try to post it into 2 or 3 sections?

u r welcome...

Bigbigboss, u r right about (4), (sorry, I should use #3), the warrant's valuation by formulas r simply "Theoretical Price), it's juz for reference, the actual price depends on the Supply-Demand factor of the day, Buyers-Sellers mentalities, Market sentiments, etc. etc...

Sl3ge, ur broker info is wrong, it's already adjusted down from Rm2.04 before ex to Rm1.57, taken into consideration of dilution by new shares @ rm1.00 + assuming all warrants converted to shares @ rm1.20 = (2.04*2 + 1.00 + 1.20)/4 = Rm1.57...

But as I said above, bcos on the initial days of new shares trading, many holders may sell down their new shares to cash out, so prices may get affected due to higher volume of shares in supply...

This is not a Buy or Sell call on Prole us shares, it's more like educational discussion. Hope the above is of help to ur future investment decisions...

Therefore, if the Prlexus stock prices can hold at rm1.48, and if warrant prices traded at 70 sen (correspond to 35% volatility), then ur total values will be Rm1.48+0.70 = Rm2.18, compared to ur costs of Rm1.85 per share, that means a positive returns on investment of 35 sen per share or about 19% returns...

If the dividends are not considered (assuming Company give low dividends due to funds utilized for further expansions), then the warrant price at no volatility is 54 sen...

By assuming a low risks, or No Volatility, and a 2% average dividends per year (ie, 1.5sen interim + 1.5sen Final div.), the Minimum value of warrants should be ~40sen. But the stock is quite volatile, so it should be worth more than 40 sen.

By inputting Strike price at rm1.20, Stock price at rm1.59, Validity 1820 days (5 years), Volatility at 40%, and interest rate at 5%, the answer is 83 sen...

By changing to today's Stock price at rm1.48, other inputs unchanged, the answer is 74 sen...

That means assuming the stock prices won't drop much due to dilution of new shares, which it shouldn't NCOs the ex price have already adjusted for the dilution, the warrants should be around 70~75 sen...

By using the following Online Calculator from RIMS:

http://www.rmmsoft.com.cn/RSPages/onlinetools/Warrant/WarrantAnalysisEn.aspx

see below Investopedia tutorial on Black Scholes Model's Formulas:

http://www.investopedia.com/features/eso/eso2.asp

See page-4, Section 2.2, para.5, the Company used Black Scholes Formula to make their warrants price valuation.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5097289

83 sen

(4). What will be the prices of the shares n the warrants?

The new shares prices will be at par with the current shares, n fluctuate according to market. Expect some dilution effects once the new shares r listed for trading...

As for the warrants pricing, it's more complicated n very subjective... It was estimated to be about 83 seen according to the Company's prospectus dated 20.May, based on the ex-RI price of Rm1.59.

(2). If u don't have any OR but wish to subscribe, u can buy n sell from market, tomorrow last day of trading. The price u pay does not go into reducing the Subscription price of Rm1.00, it actually incur costs, so assuming if u buy the OR at 85sen, then ur total costs to subscribe = Rm1.85 per share + processing fees + bank draft charges, etc...

1. The OR is the Rights Subscription Forms which entitled u to subscribe for Prlexus ordinary shares at 1:1 ratio, which u must pay rm1.00 for every share u subscribe, and after u subscribed the shares, u will get free warrants at 1:1 ratio.

That means if u own 1,000 Prlexus-OR, u pay rm1,000 to get 1,000 shares + 1,000 warrants...

I signed in to make comments now, bcos I see some mmisinterpretations abt this Prlexus OR for RI & Warrants.

Hello, Prlexus supporters... I'm new member here but I hv being reading i3 comments past few yrs.