Cold Eye: "if the price drop after your bought a company shares, the company fundamental didn't changed at all, do you dare to buy more again? If you not dare, you should not bought the share at the beginning"
I recommend that you keep based on the fundamental and the potential available if they successfully turn around MEGB. Its up to you.... all here have vested interest... :)
Kelly o' Kelly...., few months down the road you will be knocking your head and said I should have listen to smurfbee if you let go now......... ; )
Be prepare that this baby might not be at rock bottom yet, no one knows , may be only Palan & his team.....as they are pondering on the price for the pp now....
@Kelly:- SMRT was once a counter for fast money, the fundament has change after smrt decided to joint venture with creador to buy over megb. The end result will either be a million of goods or a million of bads for SMRT. It is going to be a 80/20 bet with higher than 80% success rate, my personal view.
I cannot think of any internal bad factors that would failed this marriage. SMRT has the skills and experiences in education space, they have past track record in turning around Cyberjaya University of Medical College Science into a much sought after education centre. Creador is a savvy private investment entity that has great track record in multi-fold return for equity investment , Bonita / Old Town.....
The 20% risk may be due to external factors that are beyond SMRT/Creador controlled, to name one e.g.. change in gov policy in foreign students intake ..... As you can see now that they are rebranding MEGB's university to " Asia Metropolitan University " .... so I believe they already have a list of countries that they are eyeing for the new students intake to beef up the number of students in MEGB.
BV said they will need a year to turn around MEGB, that is a very bullish statement and I trust him.
Sit back and relax, by paying 60 to 70 cent a shares , you have hire a bunch of top notch educationists ; strategists and analysts working for you, where to find such a good deal... Just imagine , would you be able to start up a university with a few 10Ks, let alone, having top notch people working in your edu centre.
You are now in the business sit back , relax , enjoy the ride..... Most likely , you have have a big fat 2016 new year to make up for your 2015 thrifty new years.,,
@kimkowlee, I have great return for investing into ifca, scicom and ghlsys..... It was BV name + a fews i3 guardian angel in those counters that brought me to those counters , you see , they had help me saving lot of time in conducting the details analysis or the need to spend tons of money attending financial courses.... lol ; )
Besides having faith in his analyst team , all I need to do is just press the buy button.....
Really appreciate for spending so much of time giving this statement, Tornado. I was so sad before i read your comments, at least now u r gaves me a strong injection for my heart. I saw people above mentioned about private placement, may I know what is that mean? How would it affect this stock? I heard my friend said stock will drop bcos of this, is it real? Sorry I'm too new for this.. but I'm just worry.
"placement" - the company issue new share into market to get money. "private placement" - doing the same thing, but the share will go to private party, of course the money from private party as well.
Yes. You are right. SMRT is proposing 10% placement of its capital. means that all the share will be diluted 10% (amount of total share will be increase to 10%). Probably use the money to buy MEGB. Usually Mr. market will give bad response to shares placement, but as a shareholders we didn't lose anything since we indirectly own some assets from MEGB. Depends on which point you stand from, buy a company's shares is just like owning a company, its "value" not really can measure from what Mr. market ask for you.
Guys, correct me if I'm wong, I don't want to misleading people.
Kelly, you are Ms Kiasu n I am Mr Kiasi , so I do not dump my money into SMRT for fun or to gamble. All investment bear some risks, equity market is a high risk investment , however, at this juncture, the journey has just begun, there is no need to start pressing on the panic button. Instead, this volatility create better chances for those who has not gotten on board to buy cheap..., but frankly, as I said in my previous post, I do not know where is the rock bottom, only the management team know, as the team is pondering on the price of pp (private placement).
Private Placement is a way, other than issuing Right Issue, for public company to collect fund from private investors to fund company's projects and expansion and usually it is at a discount from the company stock price to attract investors. This PP is to provide SMRT a fund to buy the 20+% of megb stock. Stock's rise & drop according to company performance or market sentiment, less likely due to PP unless some manipulation involve.... usually there is a tenure for PP investors to hang on to the stock before any disposal could be done. If there is none, some fast gun may capitalise on the discount to make some fast money upon listing and resulted in an immediate drop in the stock price... I believe in SMRT management in getting the right group of investor....
There is no 100% guaranteed return in equity market , unless you invest in a very well establish company but you probably end up earning dividend only but not capital gain. And at bearish market you may end up loosing a lot on paper as those well establish company are very pricey.
My advise is to stay vested , the journey has just began, you got to give the management sometime to proof the capability to perform well. If you still feel not comfortable then reduce your portfolio to a level that you will be comfortable if she drop further.
@kellysgk: If you feel uncomfortable, when you free you can go bypass SMRT office, or go to Cyberjaya University of Medical College Science walk walk. Management already said they will take 1 year to turn around MEGB, not "tomorrow my share will be goreng to sky high"...
Investment only can use super hyper "free" money, not any urgent money. For example someone plan to buy house in next year, but feel like current saving not enough, so now come to shares market earn some fast money...like this I will say "stock god bless you"...You need to have infinity holding power to buy a GOOD company.
If SMRT success to turn around MEGB, target price RM1.20 sap sap sui. with average price RM0.60, 1 year can gain 100% return. (Man! you better than Warrent Buffet leh!!! Joking...) Cheer...
AlphaTrader, I believe base on below 3 known factors , you could guesstimate the targeted PP price, would you like to share some insight with the worried fellow Smartens here
1. to buy 23% megb stock at 60c 2. Private Placement 10% of PAID-UP SHARE CAPITAL OF SMRT 3. currrent disposable cash on hand
Thanks Tornado and gauss for sharing your precious thoughts and experience. I had a very good lesson tonight from you all. Although I invest with free money but still very kiasu and kiasi like what Mr Tornado said. Honestly speaking, I bought this stocks bcos one of my friend recommend to me. All I know is this company going to transfer to main board, company is under education sector and going to merge with another company megb. However recently I realized the price keep dropping where else most of the stocks were up like nobody business. That's Why I worry and came into this forum to find out more details and resolve my concern. I find you guys are really friendly and helpful especially Tornado and gauss : )
Hopes I could learn more investment knowledge from you all in future if I have a chance : )
Kelly:- I am also newbies who is learning hard, do not take my word for it.... take it as a reference will do...... ****************************************************************************************************************************
23% of MEGB :- 410mil shares x 0.23 x 60s = 56 millions 10% PP @60c market price:- 235 mil x 0.1 x ( 60c x 0.9 <10% disc> ) = 12.5 mil Profit Retain base on last Q report = 36 million
Still a few millions short....
Scenario 1. Coming financial report earning could fill the gap, that would be a quantum leap in earnings.......
Scenario 2. An additional bank loan might be needed, hopefully this is not the case.....
if scenerio 1. happen :- stock price will rebound sharply, trapped punters can take profit. ; )
If scenario 2. :- trapped punters need to join long term investors for megb to turn around ; (
Is my calculation correct ? Any Accounting Sifu can chip in some help.....
@Tornado. if u can see my previous posting i told all guys u average down the smrt because everyone started to buy that stock at that time, u always sell on news. u will always get a chance to buy that stock at lower rates. HOLD and Average (if u have bought at higher price) u will be handsomely rewarded soon.
smrt will not go like rocket / it will form staircase formation base level . to best of my knowledge and skills smrt will start its engine soon to record high levels
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....
cipapo
1,288 posts
Posted by cipapo > 2015-01-22 11:08 | Report Abuse
BV- Bavani....run man...volume is dying