the company got what it wants....i.e money from the right isue.....next step to do is trow at around 70sen n werent at around 30sen and buy back at around 40sen n 10sen later when bskl down.....the same thing done before right isue....be careful guys luckily i manage to sell all my 300k units before the right isue....good luck.....just sharing experience after following n investing in AZRB for few years
...just sharing, until today i havent found the answer why after these years of mega projects sudently AZRB end up wth few hundered million of debt and eventually had done the folliwings 1. isuing >rm1bil bond 2. capital reduction >200mil 3. right isue >rm100mil to clear up the accumulated debt n finance the on going and new projects....seem to me it is a very poor money spinner company. ..i may be wrong.......this is not to scare anybody instead to encourage u guys may be to do more research to be able to find the answer for yr self. ...may be share what yr thought wth the rest.....
yeah.. that's the question but im holding quite some time already as bought at high price last year.. keep dropping until now...but perhaps coming budget end of this year will boost it...
nordimohd. everyone entitled to share here. Here is my opinion: 1) in your first posting today : - you suggested that the company will "throw" shares having raised enough money from rights issue. I don't see how that will be possible. The company can't "throw" their shares like an ordinary investor. If any other major shareholders "throw" their shares I'm sure we will know about it from bursa announcement - actually, if you sold before ex-rights at around 0.85, you might be better off if you subscribed to the rights and get the warrants 2) In your second posting : - construction is a capital intensive business. It is quite normal for these companies - along with property companies - to have borrowings. In fact it is beneficial to have a healthy amount of debt given how capital intensive the business is - don't forget the mess with the saudi project. they won the court proceedings so the compensation should be reflected in the accounts soon - do you mean capital reduction or par value reduction. I believe it is par value reduction
I think the value of this company is in its huge orderbook. Not so much it's past performance. And at the end of the day people invest for future potential, of which I personally think AZRB has plenty of. And please be aware that in these companies, the earnings matter less than the potential earnings in the future (orderbook). Accounting principal dictates that the recognition of many projects will only be in the future but in reality the real money is already in the bag from the contracts.
i accimulated AZRB @average 70sen some 3 years ago sold @ 80+sen last year...when buying the stock my idea was it had a lot of good mega projects n likely would produce nice financial results but not as expected....instead full wth accumulated debt....
nordimohd. Congrats on your gain. That said, you will still have benefited if you subscribed to the rights issue - you'll have more shares + warrants.
As i mentioned earlier, I think the financial results will always lag the orderbook by quite abit. It will get better with the current orders. But you're free to have your own opinions
splendid_ignorance tq for sharing yr.thought...yes u have good explaination...good luck...anyway imidiately after exiting frm AZRB now i am holding gadang @ 83sen average buying which i think better money spinner.....
RHB Research has maintained its Buy call on Ahmad Zaki with a fair value of 96 sen, adding that the group is a good small-cap proxy to public infrastructure spending given its involvement in the construction of the Klang Valley mass rapid transit (MRT) project and various government facilities.
It said on Wednesday that Ahmad Zaki’s 1Q14 net profit met expectations at 27% of RHB’s full-year forecast/consensus estimates respectively.
“We project Ahmad Zaki’s net profit to hit the RM30mil mark in FY15 from less than RM6mil in FY13,” it said.
RHB said Ahmad Zaki’s current outstanding construction orderbook of RM2bil, which can already last for 2-3years will surge by 80% to RM3.6bil when the RM1.55bil East Klang Valley Expressway (EKVE) hits the ground over the immediate term.
“We also like Ahmad Zaki for its stable of concession assets comprising a highly profitable bunkering operation at the Kemaman Supply Base in Terengganu, the International Islamic University of Malaysia (IIUM) Teaching-Hospital under construction (26% completed) and the EKVE under planning.
“In addition, there is tremendous value in its 21,000 ha oil palm plantations (23% planted) in West Kalimantan, Indonesia,” it said.
RHB expects Ahmad Zaki’s net profit to surge five times between FY13 and FY15, backed largely by improved construction profit and reduced plantation losses.
...to me if looking at current pe and eps throw and buy at maximum bearish some where in future....in 2015 may be at 45sen to 50sen? ??....? depend on pe n eps at that time...??
of course, you know for AZRB to have a deep correction, all it takes is for big bro to throw a couple of thousand or may be just a couple of hundred lots
as for quick.... it is also upto big bro, will he be quick?
the number of people who are having profit is getting smaller and smaller, smaller and smaller.... you want to consider to take profit or not??
it is trapped in bear cycle since Nov 2013 clear cut shown by MACD ...see for yrself... best seen at date range: "2 years" http://www.tradesignum.com/chart/azrb
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
opportunist
45 posts
Posted by opportunist > 2014-05-28 16:51 | Report Abuse
patience... it will goes up pretty soon