Dear tksw, I guess you still very interested in HOVID because it's a GEM, right? Sort of feeling you love HOVID very much until hate it because too many people ride on it and you wanted it to be stabbed to death? ;-) kikiki....
sold off from 38 cents to 42cents after seeing price up down up down may times.. waiting for price drop to buy back. If price drops. if goes up.... too bad : bird fly.
manage to scare a few more weakers selling at 0.425/0.240. this is how the strong holding power people/fund collecting cheaper and wait for the right time to sell at higher price
the signs are there..large amount of retained profits & reserves..I think more than RM89M?.April only first phase run for new factory...they need alot of Capex for factory expansion...bank interest is getting more expensive...the last rights issue was almost 2 years ago....also they have been giving regular dividends lately to keep investors happy....so dividend in specie...rights for warrants...then rights for shares?
if u guys have not been accumulating, next week may be too late. look at todays prices... it will not budge from 0.44. something good is brewing and i think gangnam is on the right track
i dont think right issue or wat going to happen. They are going to get the money from the conversion of warrant. Warrant is current trade at -2.3% below mother share. So they just need to push the mother shares then all warrant holder going to convert to mother share.
Either way its still win win for mother share...but HOVID BERHAD-WB 2013/2018 only expires in 2018...if I am Uncle Ho.. as a substantial shareholder with more that 38% shares in Hovid, will try to get more funding for factory expansion through a right issues and sweeten the deal with a bonus issue for existing shareholders including Uncle Ho himself..in order to benefit from the RM89M retained profits and reserves accumulated so far...why share with warrant holders if they don't convert?..:)
If warrant trade at 3 percent discount to mother share ppl are willing to connvert as they can get additional profit. Right issue will diluted earning pershare of hovid.
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....
jl88
1,446 posts
Posted by jl88 > 2015-03-03 14:52 | Report Abuse
0.27 still a good price to buy in..