If your average cost is higher then it's a good time to average down. If your average cost is lower best to do nothing now and wait for 70 sen to be breached.
PROPOSAL TO RENEW SHARE BACK MANDATE N RELATED PARTY TRANSACTIONS (RPT) AT AGM. EXPECT 3 BIG ANNOINCEMENTS DIVIDEND BIG CONTRUCTION CONTRACTS FOR MALTON NY PARENT PARENT PAVILION GROUP (RPT INHOUSE) FOR PHASE 2 BUKIT DAMANSARA PROJECT RM50M REVOCATION FEE FROM ECOWORLD STARTING NEXT WEEK PRICE UPTREND STRONGER N FASTER
Depends on the pricing of the rights. If issued at a price above NTA then will increase NTA. Usually most companies priced their rights below NTA, so NTA per share after rights issue will decrease.
TheContrarian , thanks now I learned new things from you again thanks
And friend why I heard if private placement also will decrease nta as I know private placement mean get more money from outside why also will reduce company NTA ?
You need to understand that NTA=Net tangible per share. Issuing EXTRA shares will increase the number of shares. Hence, based on the formula above, it will decrease the NTA.
That is the reason why some small investor like us does not like private placement as private placement usually only benefit the big investors and it will usually far more below the market price.
However, one thing i like on Malton is that the private placement, if not mistaken is last year, totaling RM20 million is at RM1.00 per share. Meaning that the big investor is confident that this share will increase more than RM1.00 in the future. Coz no one will like to invest in the company with RM1.00, but the market value is RM0.60. SO BIG POTENTIAL.
For issuing new shares whether it is a private placement or right issue, the issued price cannot be less than the face value of the share; in the case of Malton, the face value of the share is RM1 :)
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....
darrenliew
1,032 posts
Posted by darrenliew > 2016-10-14 11:02 | Report Abuse
GOOD SIGN. 0.645 RESISTANCE BECAME SUPPORT LINE.
VERY LIKELY THERE ARE SOME ADDITIONAL GOOD NEWS COMING