maybe it will be like maxis, open up then stuck for a couple of years before moving to RM 10. likely will trade between RM 8.20-RM 8.60 band for the 1st few weeks of listing
Question: 10-15 years ago, I remember we have 1 very large size IPO named TITAN Chemical. But after that it has been privatize. And now this Lotte Titan come out again, is it this is the same company?
@Albukhary Taiwanese was majority shareholder in the old Titan Petrochemicals Co. Bhd. Later it was privatised and sold to Lotte from South Korea.What change- the ownership of the company.Main activities- manufacturing petrochemicals from petroleum feedstocks.
likely many retailers will ignore this stock cited too pricey and profit margin low. for me I expected an opening of a 3-5% gain based on current environment.
Tend to agree with @TheContrarian.Seemed the choice and preference he makes in stock investing selection is wise and proven.Investors must be informed to make wise decision.
Some people who subscribe big to the IPO would be using financing. If market price stays over IPO price then it's ok. But if it drops below IPO price then there will be huge force selling. External factors like an overnight Dow Jones crash of 1,000 points can cause a disaster. To me not worth the risk-gain tradeoff.
Lotte Chemicals does not have any gearing. i.e. it is debt free. That is the plus point. PChem is not debt free.
Since crude oil is not expected to go sky high, the cheap feedstock enables the petrochemical industry to make good profits.
As most of IPOs are priced near market price, I do not expect fantastic profit on their listing day. Just look at Ecoworld Intl now. If any external factors drag the market down, maybe we can buy it then.
Fed has announced that it is starting to shrink its balance sheet. Remember when it launched QE 2, it caused commodity markets to shoot up .... So now they are reversing gear.
Pchem has small debt around RM300 million. Their cash reserve of RM7 billion can easily pay off all of their liabilities of RM3.4 billion. LCT is investing RM 15.5 billion for their expansion in Indonesia, which 1/3 is funded by this IPO, whereas PChem has already spent some money for capex for their project in Johor. That is a plus point for Pchem, apart from a pending good news. Pchem would probably have a TA from mid July to early Sept, which may reduce the plant utilization form current record of 97%.
Many would shy away from LCT IPO due to its price, and also limited gain. Wait until it drops to reasonable price, then only you buy. Expected PER is 12x, the most it can rise is to RM10.20 (at par with Pchem PER 0f 16x). Since Pchem is bigger and more diverse, LCT will trail behind Pchem.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Stockgod8
80 posts
Posted by Stockgod8 > 2017-06-17 22:19 | Report Abuse
Advancecon still didn't make it after all