Actually the effect of dilution should already be factored in since August 2013..when the share price drop 33% from .46 to .31 on 26 Aug. Somehow , the current investors still want to factor in "dilution effect" whenever there is a conversion. In fact, you should be glad everytime there is a conversion..for every conversion 1 million shares converted, 130000 will be added to the book value of the company. If you're bullish on this company , you should buy the warrant as it gives you a higher percentage gain.
Eric : 80+ million in total will be added to the book value of this company as a result of conversion. I think the public is pretty confused with what is the net asset per share or the real eps now. If you want to be conservative, take the coming quarter result's balance sheet and calculate manually the net asset. If I am not mistaken,as of the AGM, they have a net asset of more than 600 million. (If I am not mistaken ).
Based on my calculation on the previous quarter result, L&G has a net asset of 600 million. Assuming the leftover ICULS are converted, they will have a gain of 65 Million and be left with 1.157 Bllion shares in total. Take (600+65)\1157 = 0.575 (Conservative Book Value As Of 30/6/2014). Say they earn 2.5 cents for the previous quarter, that will be 0.575 + 0.025 = 0.60 of book value. Or maybe just 0.60 - 0.02(Dividend Issued) = 0.58. Current Price @ 0.545, you are buying the net asset at 6% discount and you get Low Gay Teck and the unbilled sales for free.
Original share have 598,304,530(2013 Annual Report Pg.11), issue ICULS by 1:1; that mean ICULS have 598,304,530 units, mother share have 1,051,880,216 now, that mean still have = 598,304,530 x 2-1,051,880,216 = 144,728,844 units still not convert, about 144,728,844/598,304,530 x 100% = 24.19%. Need to continue monitor the announcement.
If the property buyers just signed S&P...will it have any effect on earnings? If it does...what would be the payment fraction like over the propert value..5%?? Please care to share anyone. Thanks
Contributing to the division’s operating profit were the progress of both Elements@Ampang and Damansara Foresta project. Following its completion for handover during the quarter, Elements@Ampang project made its final contribution to the division’s results by 75%, whilst the remaining was from Damansara Foresta project.
they write the same thing like the last financial report, but the result is still better
The recent report has spark my eye as I am anticipated the current quarter will appox RM 20-30m only as I viewed the effects of completion of Elements has been priced in last q,nevertheless,the current result will act as booster for my valuation and a bonus to all of us.Cheers.
The market for condo in the Klang Valley is still good and I believe L&G should maintain its earnings in the run up to the implementation of the consumption tax next April. Assuming diluted earnings of 20 sen per share for the financial year ending 31/03/2015, this counter is thus only trading at a prospective PE of less than 3. Where on earth can you find such a company?
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....
xcu843
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Posted by xcu843 > 2014-11-12 20:43 | Report Abuse
Near qtrly report liao but still cannot move.