From the QR, EDEN reported nett loss but here some good points :
The Sungai Kenerong Hydro PowerPlant was 100% no power outage, contributed 74% of total revenue to the company. EDEN to seek and explore more opportunities under Renewable Enegergy (SEDA).
Loss due to affected FnB business due to Covid 19.
Got RM14.3mil impairment on trade receivable, could anyone furnish some info on this matter? This aspect causes the Net loss position.
If today got some silly guys throw their warrants please take it.
Simple calculation for all of us
Warrants total 150m units, if based on 100% units at RM0.05, the total worth is only RM7.5m If minus out 30% is controlling shareholders recorded portions, then public float is only 70% of it, i.e. RM5.25m.
When the mother share price go to RM0.20-0.25 which near to exercise price, many warrants holders wont throw already as near to exercise price and worth to bet on it and the volume in market will be less and less. Subsequent buyers need to pay very high premium due to supply and demand.
Likely Eden will be stock to watch in March in view of pending ECRL updates and what holding back foreign institutional investors from joining the buying spree is the unqualified opinions by the external Auditors on Eden financial accounts,which needs to be addressed in a more convincing manner and will be better if removed...
Once ECRL land settled, current assets is > current liabilities so no more uncertainties. Moreover ECRL mari means the amount owed by immediate holding company also settle.
One thing have to know, financial position of the company is at their lowest position but they still can survive. They still have unutilised OD and RCN lines but based on recent quarters, they are able to sustain based on their current cash position and no need to utilise.
So interesting thing is, when the further disposal done then the Company cashflow position will be turnaround. Thats why my earlier comment, "the Company will be at another level".
Besides, many people may mislook on this - Page 14 of latest QR
The auditors expressed unqualified opinion (for material uncertainty related to going concern).
The management pursuade current and former auditors the going concern supported by
"the timely completion of the planned disposal of investment properties"
Throw back a question, what are investment properties in the book? 1) The Underwater World Langkawi - Land and Building - current valuation RM16-17m 2) Kuantan Gebeng Land - RM184m
you see the warrants volume. it is not cyclical trading the volume become less and less not because no one want to buy. is no one want to sell. It is collecting process.
To those who got hold warrants and mother shares. if you have holding power, just keep it, i think operator will try to shake off one time before next round super wave.
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....
Jjkcl
883 posts
Posted by Jjkcl > 2021-03-01 21:47 | Report Abuse
Qr disappointing