Huge volume is q-ing to sell at 0.52, thats why can't raise further. If they remove it, still got chance to hike higher. These fellow.....brainless? Or nothing to do after eat?
I think tomorrow will be a good day for megb.Share prices will rebound... Today this counter still mantain trading volume , a positive signal for a uptrend stock.
Medium and long term u r looking at the Saudi's deal on or not and whether Gary proceed with the purchase of share from Siva. It all depends on your goal
Game over. News just got out they placed out a big block of shares at 46.5 recently which i believed was disposed to the market and created the spike in price.
A block of 16.5m shares representing 4.02% of Masterskill Education Group Bhd's (MEGB) enlarged capital was crossed at 42.5 sen yesterday, following the recent entry of Hong Kong-based businessman Gary How Soong Khong. The price was a 22.6% discount to the closing price of 52 sen yesterday and a stark contrast to the call option of RM1.10 per share offered by How. Last week, MEGB's major shareholder Siva Kumar M. Jeyapalan agreed to a call and put option offered by How. How had a call option to purchase a 29.76% stake in the education group from Siva Kumar for RM1.10 per share and it is valid for six months from Mar 19. (Starbiz)
According to executives close to How, he has several businesses is in Hong Kong ranging from property development to the food industry.
“He feels that MEGB can be turned around quite easily by bringing in students from China to do their courses here,” says the executive. Having a stake in the group would allow him to enjoy the upside.”
I reckon what he said is true. the reason why this company make losses simply due to the drop of PTPTN student, this clearly shows that this company was running solely based on local demand. if they can open up to foreign students, it can make profit easily
where on earth other countries' uni or colleges solely depend on local demand? look at sgpore, Australia, uk, usa. it takes only someone who understand the business to turn it around
It's just a matter of time. For someone who has diversify business in HK, he will surely open up MEGB to international exposure. Also, with his business contacts in HK (basically China), I'm sure it's not a problem for him to convince China students to come over.
The old saying...'Buy the rumor, sell the news' holds true. The early birds got the worm, the latecomers end up holding yhe baby. The Call/Put option at such a high premium looked fishy, smelled fishy and will prove to be real fishy..only it is the stink of rotten fish!
Block of 16. 5 million MEGB shares crossed at 42.5 sen
PETALING JAYA: A block of 16.5 million shares representing 4.02% of Masterskill Education Group Bhd’s (MEGB) enlarged capital was crossed at 42.5 sen yesterday, following the recent entry of Hong Kong–based businessman Gary How Soong Khong.
The price was a 22.6% discount to the closing price of 52 sen yesterday and a stark contrast to the call option of RM1.10 per share offered by How.
Last week, MEGB’s major shareholder Siva Kumar M. Jeyapalan agreed to a call and put option offered by How.
How had a call option to purchase a 29.76% stake in the education group from Siva Kumar for RM1.10 per share and it is valid for six months from March 19.
In return for granting the call option, How has granted Siva Kumar a put option for the shares at the same price of RM1.10, which is valid for nine months.
If the deal materialises, Siva Kumar will receive some RM134mil in proceeds from the sale of his 122 million MEGB shares.
The option, which came in at a steep premium to MEGB’s market price, raised eyebrows as the nursing and allied health education provider had been making loss in the last two financial years.
Notably, MEGB had stated its intention to dispose of campuses that were not utilised, including those in Ipoh, Pasir Gudang and Kota Baru.
Sources told StarBiz earlier that How felt MEGB could be turned around by bringing in students from China.
How is the managing director of a private company in Hong Kong, Citi-Champ International Ltd, and manages his family’s business that includes hotel, property, manufacturing and gaming.
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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....
vincentteoh
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Posted by vincentteoh > 2014-03-27 16:38 | Report Abuse
Huge volume is q-ing to sell at 0.52, thats why can't raise further. If they remove it, still got chance to hike higher. These fellow.....brainless? Or nothing to do after eat?