lets say if i have 10000unit, but i have not extra fund to subscribe right issue, is it worth that i sell out 28000 unit on hand and go to subcribe the rigjt issue due to right issue provide 15% discount?
Bandar RIMBAYU From IJM LAND AR 2014, FY ending 31/03/2014, the land measuring 81,846,191 sq ft, the book value as at 24/01/2014 (at the date of acquisition /date of valuation) is only rm1, 258,269,000.
It is only rm15. 4 per sq ft only in the book.
WOW!
The current land value if we take @rm35 per sq ft, WCE's 40% of the SURPLUS ONLY would be rm1.14 billion, more that its current Market CAP, (1.003 Billion shares x current share price of 0.93)
The Value of the West Coast Expressway due for completion by 2019, with 60 years concessions, is FREE woh...
hopefully greedy newbies not influence by so so bloggers. ... No. No.Then stake holders forced to lower the share price to attract more buyers for their rights.. they just need your money.. urgently...
share invest just same as doing business, just a common sense whether this highway business is a good deal to invest for, that's simple, everyone have their own judgement
Those shareholders have no allocations or funds to take up their rights might have joined in the sell down over the last 2 days. This could be one of the reasons for sell down and the price is depressed temporarily. There might have invisible hands in play forcing the price lower to accumulate. This is share market and buaya-s are abound.
A good indicator that the price is undervalued is that the CEO and his spouse had been buying recently for about 300K shares at prices from rm1. 00-rm1.15.
Thanks to all the bloggers in i3 for the informative write-ups
One has to digest the contents disseminated and not to follow blindly.
Why do investors like WCE? The same undervalued situation is happening in Ekovest where the market dismissed the value of Duke 3. Ekovest highway is proven and has secured funding. I think there is much more certainty in Ekovest in terms of traffic as well as construction progress
This one is cleaner. For me at least. Eko is a decent investment though.
Flintstones Why do investors like WCE? The same undervalued situation is happening in Ekovest where the market dismissed the value of Duke 3. Ekovest highway is proven and has secured funding. I think there is much more certainty in Ekovest in terms of traffic as well as construction progress 29/03/2018 15:34
Im perfectly fine if the government wants to takeover the toll. Just pay up. Id prefer if the toll is built and operated. But id take the money now too.
Can Felicity and Jon Choivo give us your working estimate of what the Government would have to pay on a takeover of the company like what they did to Plus in 2012 in order to abolish all toll operators.would it be 1.20 or highest price done
Why 1.20 per share?It is the value of concession assets less the outstanding debts excluding deferred tax liabilities and ignoring future concession profits and works in progress not reflected in the financial statement as at 31/12/2017.It is one basis to take the company private and become a government entity.
back in october 2010, PLUS was taken private at 4.60 at a premium of 14% over the average of past 3 months traded price.Using this yardstick, the offer price would be about 1.25 per share
No idea how much they will pay as we do not have the contract. But in any event, highway also not yet finish build. I dont think this one is the problem.
But generally, it is cost of capital plus interest for uncompleted highways.
But i seriously doubt they will nationalize all highways. These highway is not maintain for free one. I can see the ones being owned by khazanah and epf, lowering their toll rates etc. But really, PLUS owes 28bil in debt, principle have not even start paying. Good luck lah.
But the rest, if they want, they are going to have to buy them.
With the price below 0.8, may need to change fund raising structure. Im hoping they forget about the fund raising and just get bank loan. Kao tim.
Is it worth to us if they just pay the cost of capital plus interest? In this situation, fund raising could be restructure, not sure whether bank allow to loan as the rumors of abolishment toll by PH. Just wish that they can follow the rules of law they mention, everything base on agreement
as mentioned in the above article, to be correct the debt amount of bond which is outstanding for PLUS is actually RM30.2 billion. I wonder the government can pay this off even though it is not one off payment. On top of that maintenance is about RM1 billion per year.
The DAP government is way too eager to eliminate toll
possible, but they cannot take away concessions without charging toll. One must remember that EPF is not government's money but people's money.
EPF has more assets than Khazanah by ratio of 7:1. Both are people's money.
Another fund which has funds is PNB. Similar, it is public's money. They cannot and should not use people's money to take over toll and abolish it. In my mind, the compensation for PLUS is more than RM40 billion. Otherwise Abu Sahid would not offer it for RM36 billion last year. See below.
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....
Felicity
104 posts
Posted by Felicity > 2018-03-28 10:55 | Report Abuse
Only problem is with the cash call, for those that has no fund will be stuck. But one can still sell the excess.