Would substantial exisitng shareholder sell down in open market, if there are good news? I'm confused, why people are so optimistic with this type of news.
Every investor has their own personal reason to sell even though for Growth Potential company. A good example would be Angel Investor. They invest during start up but then would then pare down or sell off their shareholdings midway although the company is still growing in financial value. Some need urgent cash to venture to other new business and some simply not in good terms with the BOD etc.
In short, substantial shareholders' (with no executive control of the company) sale of shares is not an indication there is no potential growth in the company. CEO, Managing Director and Controlling Shareholder would be a better indicator.
Management Team of the Company is very important. I will highlight some, at time. One of the board members, En. Amirruddin currently is Director General of Felda (#1) also ex President and Managing Director of KPJ Healthcare for many years, well known in the industry. I think Ipmuda going to be significant player in Healthcare. They are on acquisition and expansion mode.
Recently I scrolled back (history) news in i3investors Ipmuda inherited a lots of Young management (hungry for achievement) is definitely good for future developments projects
One of board members, Mr Baevin, must be brilliant engineer from Imperial College. Currently Group Director, group managing director office of DRB-Hicom( heavy industry) board member of Telekosang, ex Boston Consulting Group.
I don't think Ipmuda will have any problem on implementation and running a successful operation. I think they will be the main player for Renewal Energy.
Executive Chairman, Mr Beroz another brilliant engineer specialised in Energy and Renewal Energy. Impressive resume, US base PJM (www.pjm.com), TNB, Gunung Capital Bhd (also on RE, Gunung Hydro etc), Perak Hydro, Telekosang Hydro and Khazanah. Khazanah only take the best person to advise them on billion ringgit investment on energy and renewal energy. I heard he the best if not one of the best guy on Renewal Energy in Malaysia.
I have no doubt Ipmuda will be the biggest RE player under his leadership. In my opinion will exceed Cypark, Solarvest, Samaiden etc.
MD is Chartered Accountant and ex Director of Institutional Broking, Kenanga Investment Bank. Kenanga is powerhouse. I don't think he will have any problem selling it to Institutional, in fact I think he can do a lot more for this stock/company. That why I think, they draw a very good proposal .
Warrant and other proposal has to go thru EGM & Bursa...as good as approve. 10yrs Warrant, exercise price 66sen, premium to be decide later. Each 1 shares will get 1.5 Warrant...jolly good deal !
Just for sharing about my experience in Investment for more than 20 years. The Wyckoff Accumulation happens after a substantial drop in price and when there is no negative changes on the fundamentals of the company. During accumulation, the weak hands transfer their shareholdings (due to Fear, Uncertainty and Doubt) to stronger hands. Prices would be going sideway (zig zag) during the accumulation process. Once in Phase D, the Spring (bullish) would take place.
The first thing that you need to ask yourself whether is there any negative fundamental changes in the company?
1. Right people/management: (already highlighted) 2. Company has resources to funds projects, high NTA..even higher if they do new asset valuation (last maybe 20-25 yrs ago), low debts.
3. Could be more special dividend; Management already said will liquidate non performing assets. 3. Early stage of turnaround company..lot of room to go
4. Preferred Sector by Investor - Global trends, inline with Gov't policy 5. Right business for current and future economy (Pandemic and Post Pandemic) : Healthcare and Renewal Energy.
6. Sector command high valuation. 7. High impact on revenue ; major shift from building materials to Healthcare and Renewal Energy.
8. Ready business - Hospital, Solar, Hydro already in operation / income. 9. Secured long terms buyer/sales.
10. Main market but small cap. Only 100M shares 11. Small floats...maybe 30M the most.
12. Good proposal, MD has experience with market and funding. 13. Soon Institutional will coming, perhaps slowly collecting, as they know company will expand and improve the liquidity with the proposal.
SLLEE5732. If you look at KPJ, IHH....their P.E 60 plus. Then look at Solarvest and Samaiden their P.E. also 60 plus and in good time can reach 80.
Healthcare will always do very well, because annual Medical Inflation is very high.
Renewal Energy has so much opportunity. Hydro power plants is so much profitable than Solar..especially LSS projects...miserable bidding process...some might make a loss on the project.
I aim high...but I'm long on this...you have to follow their corporate exercises and expansion plan.
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....
GreenInvestor
18 posts
Posted by GreenInvestor > 2021-07-02 09:53 | Report Abuse
Overall Bursa Market is in sea of red caused by the EMCO announcement. Best time for bargain hunting now