No joke, this counter everyday drop 1-2 cents. Not sure why keep dropping and my average price is still very high at RM1.19. Thinking to cut lost at 96cents first... buy back after 89cents.
This counter look good if buy now and keep for mid-long term. Ex Pn17 company, with reasonable result for last few quarter, reasonable revenue and profit, low PE and high ROE.
The directors/shareholders are milking the company... they did it last time with private placement, got cheaper shares but market was fed up with how they run the company like a piggy bank.. now they want again to get more shares at cheap price, they know a lot of people will not buy so they get even more shares for discount to market. reaction is that market sees this and so people selling and getting out! Had great prospects but directors/major shareholders getting greedy!
The prospect for growth for this sector is promising, but the management seems to be a little complacent 'makan gaji buta'.....am a bit skeptical with this proposed rights issues though they offer free warrants as sweetener....
They did well to get to where they are but now they decide to get rich quick... they have good fundamentals but the reason why the share price is so low is lack of confidence in directors/major shareholders. cannot argue with share price. I am in red so have no choice to wait but disappointed... will take part in rights issue only to average down :-(
has a price been set yet ? if not you will see same directors/major shareholders pushing share price down to get get cheapest price of 5 day average.. usual cheap trick! use 3rd party accounts to trade shares to push price down so no need to declare!
imo, this right issue although some of us think is milking directors, but it's right move as $ collected used in capital expenditure. With current PE lower than 4, very worth it to collect, keep for longterm. My Tp will be +25% of current price in next 3-6months.
Coming months if Hohup able secure a medium contract worth couple millions will greatly pushup the price, as current price really undervalued, and over sold by shorterm investor that don't want subscribe right issue. After leaving Pn17, this company is in right track, just need some patience to get the fruit.
Agree fundamentals are good and the future could be very good. Cash in bank is also good. Just amazing when ever issue happens the shares get pushed down to get lowest price... Even market sees it which is why even though company is actually in a good position share price is so low.
New low...going to break right issue price. Who going to take right issue if can get same price from open market? Maybe they should postponed their right issue proposal..or lower down right issue price to 0.70
Rights issue create more shares, lower EPS. Existing warrants price will drop. But if the rights issue bring in more income, EPS up, warrants will up. No fixed answer.
Existing warrants exercise price may be adjust because the mother share price adjust due to rights issue.
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....
i3i2i1
4,731 posts
Posted by i3i2i1 > 2016-01-04 08:57 | Report Abuse
so less but might be true :) Happy New year folks!