Posted by (US/CHN trade war doesn't matter) Philip > 2019-05-18 19:50 | Report Abuse

private placements and rights issues are never a good sign, no matter how good the marketing and storytelling can be.

I think the last time I recall QL having a rights issue was in 2014.
PCHEM has never had one.
Public bank last did one in 2014.
Topglove chose to do convertible bonds instead, something similar but with less dilution of shareholder value.
I can't recall if GKENT has every done one in recent years, but I do know they do buybacks.
Yinson did one in 2014, which was funnily enough, OVERSUBSCRIBED. Turns out if you use rights issue to pare down debt and do things properly, there will be support.

Doing any private placements or rights issue when the market is challenging is never doing the right thing by the investors. Management has to give big discounts to raise cash, and in the end the ones that lose out are the owners and minority shareholders of the company.


Malaysian investors are weird. They look down on companies that do buybacks and overly value dividend payout. They should understand context, buybacks when the intrinsic share value is low and debt paring vs dividend payout (or even borrowing money to pay a dividend) is key in raising long term value.

Posted by i3Value > 2019-05-18 20:02 | Report Abuse

Agree with Philip

Posted by lizi > 2019-05-18 20:14 | Report Abuse

Monday? Stay flat at rm1.15...mark my word...

Posted by Abismail > 2019-05-18 20:20 | Report Abuse

Monday cuti

Posted by pjseow > 2019-05-18 20:25 | Report Abuse

Airasia had a private placement in 2016 where its CEO borrowed 1 billion ringgit to purchase the shares at 1.80. Since then the share prices went up to the peak of 4.66 before it came down to less than 3 due to poor Q4 result due to high oil prices. At the end of the days, it is the company performance which will.dictate the share prices.

Posted by geary > 2019-05-18 20:25 | Report Abuse

Hahaha...Odds are positives/negatives...33/67...Beginning is a voting machine...in the end weighing machine malfunction...!!!

Posted by Connie555 > 2019-05-18 20:32 | Report Abuse

Sifu cup Weed cup dou high jor, Monday no market lar sifu. Tuesday to be exact...

Posted by kcchongnz > 2019-05-18 20:37 | Report Abuse

Thanks for the correction. Drank too much pinot noir. I have corrected the title.

Posted by pjseow > 2019-05-18 20:44 | Report Abuse

With the 4 dividend payments of 12 sen each plus.a special dividend of 40 sen since the private placement , Tony of Airasia would have made almost 1 billion if he were to sell all the private placement at 2.70 which was the price 2 weeks ago. Tony was really smart to time his private placement at the right time. Dayang should time its placement for"" its other investors' when the company can deliver its best results which should be after announcing its q3 result. I supposed dayang is planning for that in DEC 2019 after q3 result is announced in end Nov

Posted by lazycat > 2019-05-19 09:18 | Report Abuse

Right issue - 80cent
private placement - RM1.14

share price probably would not lower than Rm1.14 and the right issue form price will range between 25-34cents

have $$ and confidence then buy more form and subscribe ; no confidence & no $$ then sell the form

i wonder what people like uncle kyy will do? since he bought on margin, will he sell all dayang and lari or buy more forms and subscribe?

Posted by freddiehero > 2019-05-19 09:44 | Report Abuse

is tis all can be calculate? if ya.. they might easy catch u.. kakaka

Posted by kcchongnz > 2019-05-19 10:49 | Report Abuse

Posted by (US/CHN trade war doesn't matter) Philip > May 18, 2019 7:50 PM | Report Abuse
private placements and rights issues are never a good sign, no matter how good the marketing and storytelling can be.
Doing any private placements or rights issue when the market is challenging is never doing the right thing by the investors. Management has to give big discounts to raise cash, and in the end the ones that lose out are the owners and minority shareholders of the company.

I agree with you mostly.

Sometimes cash calls are required for some good causes. Getting bank loans and bond issues is a better option as cost of debts is lower than cost of equity, and there is no dilution of existing shareholders by private placements.

Rights issues is not so bad when cash is required. However, private placement is simpler, faster with less regulations. If the company needs the cash fast, and cash will be used productively, it is not too bad after all.

Posted by kcchongnz > 2019-05-19 11:33 | Report Abuse

Posted by (US/CHN trade war doesn't matter) Philip > May 18, 2019 7:50 PM | Report Abuse
Malaysian investors are weird. They look down on companies that do buybacks and overly value dividend payout. They should understand context, buybacks when the intrinsic share value is low and debt paring vs dividend payout (or even borrowing money to pay a dividend) is key in raising long term value.

In investing, there is no one size fits all.

Buyback shares when the share price is undervalued is definitely good for the company and the shareholders. However, not all managers buy back shares because they are undervalued, but rather for their interest such as jacking up share price because they own a lot of shares or share options. I prefer management buys more shares with their own money.

The very basic of the capital market is investors provide capital for company to do business, and the investors got return in term of regular dividends, from the free cash flows of the company, not from borrowings.

Dividend is never a bad thing in investing. It is a testimonial that the company is doing well, that the management is willing to share the profits of the company, a positive signal. Dividend is hard cash which investors can use it as they like; to buy more shares of the company, or other more promising companies, or spend it to enjoy their fruits.

Posted by (US/CHN trade war doesn't matter) Philip > 2019-05-19 17:15 | Report Abuse

I see. I own 2 shares of class A brk. It has never given me a dividend. Does that mean it is a negative signal, the management is unwilling to share the profits of the company? I hope not.
>>>>>

Dividend is never a bad thing in investing. It is a testimonial that the company is doing well, that the management is willing to share the profits of the company, a positive signal. Dividend is hard cash which investors can use it as they like; to buy more shares of the company, or other more promising companies, or spend it to enjoy their fruits.

Posted by kcchongnz > 2019-05-19 17:35 | Report Abuse

Posted by (US/CHN trade war doesn't matter) Philip > May 19, 2019 5:15 PM | Report Abuse
I see. I own 2 shares of class A brk. It has never given me a dividend. Does that mean it is a negative signal, the management is unwilling to share the profits of the company? I hope not.


Did I say if a company doesn't give dividend, it is a negative signal?

What is wrong with receiving dividend every year from investing in a stock?

Posted by pussycats > 2019-05-19 17:47 | Report Abuse

Posted by superbull11 > May 19, 2019 5:08 PM | Report Abuse

kcchongnz n KYY now become panic now , wanna SELL or HOLD also don;t know , Dayang will drop to 60 sen if weak QR appear ,dayang director will take oppoturity place right issue price fixed at 60 sen , KYY n kcchongnz kena play by Dayang company director , next week u will see margin call from KYY
=====

Kcchongnz didn't buy dayang lah.
He just use Dayang as an example in his writing lah.
LoL.

Posted by (US/CHN trade war doesn't matter) Philip > 2019-05-19 18:01 | Report Abuse

Your implied it that way. I may have received the info wrongly then. Apologies. I believe a company should only give out a dividend if it is under to use the money more efficiently than the shareholders. If the interest rates are high, using capital on debt reduction is far better than dividends. If the share price is far far lower than book value or peer value, buybacks are worth much more than dividends.

The main takeaway is that everything must have a context for the action. Why must a private placement be needed? Why not explain clearly to shareholders and do a rights issue? Why give out a dividend if you need to raise cash later via pp with extra 10% discount to raise money?

>>>>>


Did I say if a company doesn't give dividend, it is a negative signal?

What is wrong with receiving dividend every year from investing in a stock?

Posted by kcchongnz > 2019-05-19 18:23 | Report Abuse

Posted by (US/CHN trade war doesn't matter) Philip > May 19, 2019 6:01 PM | Report Abuse
Your implied it that way. I may have received the info wrongly then. Apologies. I believe a company should only give out a dividend if it is under to use the money more efficiently than the shareholders. If the interest rates are high, using capital on debt reduction is far better than dividends. If the share price is far far lower than book value or peer value, buybacks are worth much more than dividends.
The main takeaway is that everything must have a context for the action. Why must a private placement be needed? Why not explain clearly to shareholders and do a rights issue? Why give out a dividend if you need to raise cash later via pp with extra 10% discount to raise money?
>>>>>
Did I say if a company doesn't give dividend, it is a negative signal?
What is wrong with receiving dividend every year from investing in a stock?


When I say you are a good man man because you donate a lot of money to charity. Does it mean I imply that you are a bad man if you don't?

Anyway, it is a matter of capital allocation. If a company gets a lot of free cash flows from its ordinary business, management can do a few things with it,

1) Gives out as dividends
2) buy back shares
3) invest in new ventures
4) Pay down debts

Management should only buy back shares if they are selling very cheap. If the share is fairly valued or overvalued, why buy back? What is the point of public listing then?

Most of the time, as shown in research, company doing merger and acquisition destroy value. So no. 3 not necessary great.

If company has a capital structure of 10% debt and 90% equity, or even 40% debt, and company produces a lot of free cash flows, why want to pay down debts? Cost of debt is much cheaper than cost of equity.

In fact, if a company produces a lot of FCF, it may be better to do recapitalization, get more debts and distribute cash as special dividends to shareholder.

Distribute that excess cash to shareholders if company has no use for it.

See candies distribute almost all FCF to shareholders every year. Buffett use this cash to invest in other things.

Posted by kcchongnz > 2019-05-19 20:00 | Report Abuse

Posted by pjseow > May 18, 2019 8:25 PM | Report Abuse
Airasia had a private placement in 2016 where its CEO borrowed 1 billion ringgit to purchase the shares at 1.80. Since then the share prices went up to the peak of 4.66 before it came down to less than 3 due to poor Q4 result due to high oil prices. At the end of the days, it is the company performance which will.dictate the share prices.

Thanks for the excellent info. I will use this as an advantage of private placement in my book, plus a few others.

Posted by kcchongnz > 2019-05-19 20:02 | Report Abuse

Posted by pjseow > May 18, 2019 8:44 PM | Report Abuse
With the 4 dividend payments of 12 sen each plus.a special dividend of 40 sen since the private placement , Tony of Airasia would have made almost 1 billion if he were to sell all the private placement at 2.70 which was the price 2 weeks ago. Tony was really smart to time his private placement at the right time. Dayang should time its placement for"" its other investors' when the company can deliver its best results which should be after announcing its q3 result. I supposed dayang is planning for that in DEC 2019 after q3 result is announced in end Nov

Hopefully I can use Dayang as a good example in the success of a rights issues and a private placement.

Posted by kcchongnz > 2019-05-19 20:06 | Report Abuse

Posted by pussycats > May 19, 2019 5:47 PM | Report Abuse
Posted by superbull11 > May 19, 2019 5:08 PM | Report Abuse
kcchongnz n KYY now become panic now , wanna SELL or HOLD also don;t know , Dayang will drop to 60 sen if weak QR appear ,dayang director will take oppoturity place right issue price fixed at 60 sen , KYY n kcchongnz kena play by Dayang company director , next week u will see margin call from KYY
=====
Kcchongnz didn't buy dayang lah.
He just use Dayang as an example in his writing lah.
LoL.

I do have some Dayang shares but why panic? Even if its shares tank so what? It is just a share in my diversified portfolio. Why have to panic when you are investing after thorough study, and investing with your own money, and not with margin.

If I speculate with margin finance like others and with huge stake, I may panic, because I may be wrong in my assessment too. With margin finance, it won't give you chance if you are wrong.

Posted by qqq3 > 2019-05-19 22:09 | Report Abuse

why so many theory one?...if next year can make more money than this year and this year more than last year, than no reason for price to drop especially if PE is within reasonable range....lower the better.

Posted by qqq3 > 2019-05-19 22:13 | Report Abuse

kyy may not be right each and every time....but KYY don't lie one.......he says honor more important than money.

he says he got money to waste......cannot take every thing away......

Posted by tftey > 2019-05-20 11:19 | Report Abuse

RI during challenging time probably not a good sign. PP during challenging time provide good opportunity for the owner to placed at much cheaper price. Consequently, you can guess for yourself what is going to happen next few days.

Posted by OrlandoOIL > 2019-05-20 11:51 | Report Abuse

At the moment one MCM contract is supporting the prices of Perdana to Dayang n all the way upto Naim

Petronas targets to decommission 50 local oil well in 2019 alone

Perdana jobs market is sinking wat is prospect?

Whn Perdana not performing bad thing wil find its way up to Dayang n all the way Naim

Posted by OrlandoOIL > 2019-05-20 11:55 | Report Abuse

Dayang's fund has all bin channelled to Perdana which is now owing Dayang a crazy 600m together wit another defaulted hundreds of million bank borrowings whc remain under resolved under CDRC

How come no mention of the current status of the bank borrowings under CDRC in tis announcement?

Posted by OrlandoOIL > 2019-05-20 12:02 | Report Abuse

Dayang's price has ran ahead of its fundamentals..

Price moved up thus far was based jz on 1 QR

Posted by hollandking > 2019-05-20 12:27 | Report Abuse

qqq3, i tell u , i suspect your sifu already run road. U see his pic, celebrating with a bottle, the pic tell more than what was written.

Posted by kcchongnz > 2019-05-20 14:31 | Report Abuse

Posted by qqq3 > May 19, 2019 10:09 PM | Report Abuse
why so many theory one?...if next year can make more money than this year and this year more than last year, than no reason for price to drop especially if PE is within reasonable range....lower the better.


So many theories?

You good friend has raised some pertinent points about the use of cash of the company which is an important aspect of management action in capital allocation in the light of investing in a company. It is also a major subject in accounting and corporate finance. I would expect an ""accountant"" would be able to contribute meaningfully.

Alas, just dreaming, I doubt this ""accountant"" even understand nor care what the subject is about.

The only thing he does is mimicking the quack of a duck.

Posted by qqq3 > 2019-05-20 14:40 | Report Abuse

kc........why so many theory one?...if next year can make more money than this year and this year more than last year, then no reason for price to drop especially if PE is within reasonable range....lower the better.


why introduce complexity when none is needed? keep it simple but not simpler.

enough already.

Posted by qqq3 > 2019-05-20 14:55 | Report Abuse

hollandking > May 20, 2019 12:27 PM | Report Abuse

qqq3, i tell u , i suspect your sifu already run road. U see his pic, celebrating with a bottle, the pic tell more than what was written.
============

Celebrate Dayang announcement with the best whisky in the world. Koon

Posted by qqq3 > 2019-05-20 15:01 | Report Abuse

I don't believe patented medicine has assisted the growth of medicine for civilisation// society/ mankind.

Posted by Jeffbkt > 2019-05-20 15:29 | Report Abuse

Just like the malay persibahasa "HENDAK SERIBU DAYA, TAK HENDAK SERIBU ALASAN"

Just trust your own judgement if you have really study the fundamental and the future prospect of the company. Why wasting time here to argue with others.

Learn to agree on disagreement and remember right or wrong cannot because of just one counter misjudgment unless you are all in in this counter.

Posted by 4444 > 2019-05-21 01:41 | Report Abuse

Why announce RI, PP before QR?

Posted by pjseow > 2019-05-21 06:23 | Report Abuse

airasia's debt was about 11 billion when Tony took the private placement. The proceed of 1 billion pp was used to pay off its nett.debt.of 9 billion. I bought some airasia shares during.that period.at 1.80 seeing the confidence the.CEO had with the company .The share.price.went up.north after that when airasia performance improved . I sold the shares.when it doubled.

Posted by pjseow > 2019-05-21 06:27 | Report Abuse

kcc, I do hope dayang will.perform the same.way as airasia, inari or.mfcb .after private private placement.

Posted by hollandking > 2019-05-21 07:42 | Report Abuse

can see fear in many eyes judging by the way they had written. Good Luck

Posted by qqq3 > 2019-05-21 11:26 | Report Abuse

kc.....so why rights issue?? didn't u say cash flow so strong no need rights issue? now, rights issue and private placements and RPS and sukuk some more........what happened to the cashflow, kc?

Posted by qqq3 > 2019-05-21 11:27 | Report Abuse

ps........I got insider news long long ago.............

Posted by qqq3 > 2019-05-21 11:42 | Report Abuse

ps........I got insider news long long ago.............too bad I am sworn to secrecy until after the news is out.

Posted by qqq3 > 2019-05-21 12:11 | Report Abuse

Dayang, how will its share price move next week? kcchongnz.....well, I eagerly look for the answer in the article.....but kc.....u wrote the question but no answer?

Posted by Limbeh > 2019-05-21 12:16 | Report Abuse

aiyooo dayang didnt move kaa..

Posted by kcchongnz > 2019-05-21 17:20 | Report Abuse

Posted by qqq3 > May 21, 2019 11:26 AM | Report Abuse
kc.....so why rights issue?? didn't u say cash flow so strong no need rights issue? now, rights issue and private placements and RPS and sukuk some more........what happened to the cashflow, kc?


I did say there are abundant free cash flows. Aren't you an accountant? If you are, how come you can't see, and even after I explain in details and showing those cash flows figures, you still got no idea at all?

How not to believe you are a fake accountant?

When did I say "no need rights issue". Can find it and copy and paste here, big liar?

Posted by qqq3 > 2019-05-21 17:43 | Report Abuse

kc...reading cash flow statement is easy.....what is not easy is sell at $ 1.70 and never look back........

Posted by kcchongnz > 2019-05-21 18:05 | Report Abuse

Posted by qqq3 > May 21, 2019 5:43 PM | Report Abuse
kc...reading cash flow statement is easy.....what is not easy is sell at $ 1.70 and never look back........

Typical big liar and shiok sendiri. All the time when the price went up say from RM1.00 to RM1.70, and then down to RM1.15, he will say he sold at RM1.70.

When did you say you buy Dayang? Can show me your comment in i3investor ah?

But I did read his comments in i3investors for some stocks. These were the results when he promoted them in i3investor, and the prices now.

10/8/2018 5/21/2019
Sendai 0.8 0.4 -50.0%
Serba 4.15 4.04 -2.7%
Pmetal 5.15 4.26 -17.3%

And this
10/31/2018 5/21/2019
KESM 12 7.51 -37.4%
Layhong 0.4 0.44 10.0%
Seacara 0.28 0.21 -25.0%
D&O 0.89 0.625 -29.8%
Elsoft 1.29 0.81 -37.3%
Hibiscus 1.12 1.07 -4.5%

And this
Stock price then 5/21/2019 Gain/loss Gain/loss %
Bornoil 0.10 0.045 -0.055 -55%
CBIP 2.25 1.04 -1.21 -54%
Ecoworld 1.29 0.86 -0.43 -33%
Taan 4.79 2.25 -2.54 -53%
Jtiasa 1.35 0.535 -0.815 -60%

Every one lost money in huge amount. But he said he made 200% the last two years because he is a trading pro, going in buying lowest, and going out selling at highest, without any records.


So do we trust what a serial liar say without any published record, or the records as commented by him found in i3investor?

Posted by qqq3 > 2019-05-22 02:17 |

Post removed.Why?

Posted by qqq3 > 2019-05-22 02:34 | Report Abuse

kc.................Philips is right....There are very few quality companies in Bursa.......

Dayang and Perdana surely not one of the quality companies. quarterly results fly here fly there.

Traders ok....Intra quarter results trading can make a lot of sense ....no need to take the risk of quarterly results....

Kc....u should try it.....makes sense even.....no need value here, value there, no need face quarterly results surprises...........

value here value there is just not good enough

quality first is enough to trade and make money and avoid losses in Dayang....what can be simpler?

Posted by qqq3 > 2019-05-22 02:40 | Report Abuse

Pos Malaysia just reported bad results . I remember IB Mcquarie place value of $ 7 on Pos.......imagine that?

moral of the story....only traders can survive.

Posted by qqq3 > 2019-05-22 03:01 |

Post removed.Why?

Posted by qqq3 > 2019-05-22 03:01 | Report Abuse

Perdana just produced results, very bad.