41 sens still cheap to go in given that the ECRL tendering stage is coming up in 4th quarter. 30% bumiputera contractor quota and AZRB is king of the east coast so ‘surely’ the deck is staged favorably for them or aka a good horse to bet.
The level to be wary is at 55 sens which is when the directors themselves offloading some of their own personal share holdings albeit a small amount. This happened on the last recent months run up.
Note, i used the word ‘staged’ as opposed to ‘stacked’ in above. They say tendering is now ‘open basis’, if you believe it is done as such then i made a typo error. Alas, i still believe otherwise, so i used the word staged instead :-p
Depends on what price you are asking?? Farm/wholesaler price? retail price?? RM48 should be retail price (slightly expensive) and should be able to get get very good old tree/high hill grade A durians
Most likely to repay off their current loans while adding on a new loan. This is a form of corporate finance exercise to satisfy loans that come due i.e. revolving loans. Like when you pay off one of your credit cards balances with funds from a new credit card you applied for.
No significant effect on the books unless the coupon rate on the bonds are higher than the current loans’ interest rates. Hence, no direct causation effect to share price, in theory.
There could be so many other reasons for issuing a loan or debenture, such as for working capital ie to pay for salaries, TNB, director’s fees, etc, as a security for performance bond to bid for projects, to upgrade its facilities, to purchase land banks, to pay dividends, etc.
The good part of a bond issuance could mean that the books are somewhat not critical, if not, obviously it would not be approved by Bursa and management may have to resort to other means of capital raising such as Rights issue, or worst still declare a surprise bomb Loss on its books and go for capital reduction and then re-issuance of its shares after say a 20 to 1 reduction. The latter scenario is unlikely for AZRB though given its track record.
Basically, it is very normal for companies to take up loans to operate. Even companies such as Nestle which is highly liquid in its cashflows and high dividend payout rates also have long term loans in issuance.
Mabel, Many counters in property, plantation and construction are being hammered down to recent lows. it's seem like these sectors are still consolidating downward, but for sudden sell down of good counters may trigger buying interests..
ORION (0079) could be the next SUPERBULL IT STOCK. It's covered by the CIMB research guy Name NIGEL FOO. Normally stock he covered mean potential something is brewing. We can see it from previous call on IFCAMSC and MYEG which fly up super huge. Especially IT company.
Myeg is one of the stock make him famous. And next is IFCAMSC.
Of course now both not doing well, but the front part is amazing, we just need to ride the front part.
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....
kong73
2,065 posts
Posted by kong73 > 2019-08-20 09:57 | Report Abuse
It is coming up.. untung beli Ahmad Zaki.. EKVE operationalising Sept 2019