RENOUNCEABLE TWO-CALL RIGHTS ISSUE OF 56,957,350 NEW ORDINARY SHARES OF RM1.00 EACH IN IREKA CORPORATION BERHAD ("IREKA") ("RIGHTS SHARE(S)") TOGETHER WlTH 56,957,350 FREEDETACHABLE WARRANTS ("WARRANT(S)") ON THE BASIS OF ONE (1) RIGHTS SHARE WITH ONE (1) FREEWARRANT FOR EVERY TWO (2) EXISTING ORDINARY SHARES OF RM1.00 EACH HELD IN IREKA ("IREKASHARE(S)") AS AT 5.00 P.M. ON 2 JUNE 2014, AT AN ISSUE PRICE OF RM1.00 PER RIGHTS SHARE, OFWHICH THE FIRST CALL OF RM0.65 PER RIGHTS SHARE IS PAYABLE IN CASH ON APPLICATION AND THESECOND CALL OF RM0.35 IS TO BE CAPITALISED FROM IREKA'S SHARE PREMIUM ("RIGHTS ISSUE WlTHWARRANTS")
Ireka you won't be able to buy at 0.80 anymore soon.Still a good buy at this region.High posibilty it will announce explosive capital gains and the NTA is going to improve tremendously.Remember one can have the opportunity to grab the warrant as it moving cent to cent per mother share.Good stock for mid term play.
Today's volume confirmed Ireka is trending up. Take position now at the current price of 79.5 sen. Weakholders are selling and smart monies are accumulating. Price was at 90 sen going into privatisation not too long ago. I believe another privatisation offer soon (12 months after the first offer).
Listen to BFM headline dated 24 sept 2014 (above). Ireka privatization at RM0.90 earlier failed. Sold shares in Aseana Property (Listed in London) and will received RM200 million by next year. Great potential. Uptrend. Have investment (30%) in Vietnam, increased property development in Nilai etc. NTAB RM1.09 as at 30-06-2014
The accumulation phase has started. It is time to join in and take position of the up trend that will continue till the announcement of the divestment plan of ASPL in 2015.
Ireka started strong at the opening bell. The price within minutes of opening hit 82 sen after taking cue from yesterday’s solid white candle closing. Like most trading days nowadays Traders reluctant to hold their position longer and starting to sell and made some profits from yesterday’s entry position. Price close at 77.5 sen down 1.5 sen from yesterday’s closing providing opportunity for investors to accumulate this stock at a bargain. This is a NO BRAINER INVESTMENT if one willing to keep it for 12 month or less and here is why? So we need more Traders turn into Investors.
ASPL already indicated that they are planning to sell ASPL in 2015. At current price ASPL is valued at RM 200 million, much more than the RM 113.6 million IREKA market capitalization. IREKA has also raised funds recently via rights issues and therefore the cash received from the sale of ASPL will more likely to be distributed handsomely back to the shareholders.
I am expecting at least a 50% or RM 100 million payout to shareholders. Share outstanding stood at 170.87 million. A whopping 59 sen payout. WOW!
So what will be IREKA left with after the sale of ASPL?
While, they still have over 65 acres of landbank in Klang valley and Nilai value at over RM 2 billion in Gross Development Value. Say 10% of GDV I would say the landbank alone has over RM 200 million plus an order book of RM 2 billion currently.
For a market capitalization of only RM 113 million this counter is ripe for a re-rating very very soon. So take position now. Ride with the TREND. Take note that the free float is only 33%.
Assuming from now on average volume of IREKA at 4million shares and 20% is bot for investment for this divestment plan. At 170 million shares outstanding and 33% free float only 50 million shares are available for trading. if 800K shares (20%HOLD startegy)) are bot daily for keeps then you will start to see the share available to trade dwindle drastically in less than 60 days. Time to accumulate if you dont have any borrrowed funds.
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Posted by chia88 > 2013-05-30 22:01 | Report Abuse
SELL!