The recent few days push indicates ample of liquidity out there with majority into this counter.If there is 2nd round upside,its definitely not today as minority buyers will lock in their losses/profits today.My tp to entry is again 0.21.Cheers and good luck in your trades!
Lets swift leesk to kfm. kfm privatise news at 45sen in the star KUALA LUMPUR: Kuantan Flour Mills Bhd (KFM) has entered into a heads of agreement (HoA) with a major shareholder of NEP Holdings (M) Bhd in an exercise that will see the latter emerge as a substantial shareholder if the proposed deal is approved. The exercise will see KFM acquiring assets from NEP in a reverse takeover (RTO). It will result in Lim Chang Huat, the major shareholder of NEP, emerge with an interest of more than 33%, triggering a mandatory general offer (MGO) for the rest of the shares he does not own at 45 sen each. According to a filing with Bursa Malaysia yesterday, NEP is involved in assembly, leasing and trading of water filtration system products under the “Diamond” brand. KFM said it had entered into a HoA with NEP’s vendor, Lim, for a number of proposals to facilitate the RTO, which included the creation of a new entity (newco), and securities exchange between the newco and KFM. Under the scheme of arrangement, it is proposed that every three existing shares in KFM will be exchanged for one new share and one warrant in the newco. The existing KFM warrants will be exchanged with warrants in the newco. Subsequently, the listing status of KFM, which used to be aligned to former corporate kingpin Soh Chee Wen, will be transferred to the newco, which will then acquire NEP for a purchase consideration to be determined later. The acquisition shall be satisfied by the issuance of such number of new newco shares at an issue price of 45 sen each to the vendor, which is why Lim has to undertake a MGO at the same price if the deal is approved. It said Lim will be seeking for an exemption from the obligation to undertake the offer upon the completion of the proposed acquisition. One of the salient terms of the HoA is that both parties have agreed for their books to be opened up for due diligence. In this respect, Lim has agreed for KFM and its advisers to have access to all its corporate records and would provide additional information on reasonable request for due diligence. The similar access to conduct a due diligence on KFM is also granted to Lim. KFM has recorded a decline in revenue for the past five financial years up to March 31, 2014 (FY14). In the same period, the group has also recorded net losses. It said the poor financial performance was due to, among others, low average selling prices of flour and the fluctuating prices of wheat. “In view of the declining financial performance of the existing core businesses of the KFM group, the board has been actively searching for suitable business ventures to improve the prospects of the group in the long term. “The proposed acquisition will provide an opportunity for the existing shareholders and warrant holders of KFM to capitalise on NEP group’s growth potential in the distribution of water filtration system products and stable financial performance,” KFM said in the statement. KFM said NEP posted a net profit of RM17.25mil on revenue of RM133mil for the financial year ended June 30, 2013 (FY13). Net profits for FY12 and FY11 were RM14.9mil and RM12.7mil respectively. The compounded annual growth rate (CAGR) of the NEP group’s revenue for the past three financial years up to FY13 was about 15.3% while the CAGR for the NEP group’s net profit was about 16.39%.
It seems that liquidity is unplugged from this counter at the moment.The continuous sell down should be drastic later today and will resume tomorrow as well.Best entry price = unknown. Best exit price = sell now.Cheers
News already out a few days ago, shark all left after goreng for 2-3 days. Later will have sell down. Sell this buy nexgram better. Conservative TP 15 sen up 25 percent from current price 12 sen.
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....
Lotusf1
1,159 posts
Posted by Lotusf1 > 2015-03-15 23:26 | Report Abuse
If x fr UMA it cud have been touching ,0.40 lst week...game on or game over fr leesk?