Could be the dark horse for 2016. Going in now may look like a gamble but if you had researched, you would find that Tecnic was prepared specially for the rto.
Very interesting times ahead. For the contrarians it may be a good time to collect? REI, the vendor, were doing very well when they decided to go private in 2007. The reason, they were not willing to dilute their share holdings in order to meet the minimum public spread of 25%. They bought the remaining shares (21%) that they did not own at RM1.80 per share. An analysis of their 2007 accounts, indicated high growth in both top line and bottom line, with historical p/e of 5.45 times and their forward p/e of 3.5 times, based on annualized earnings. In 2016, they have a change of heart. What do you think will happen in the coming months leading to the IPO?
conclusion from the proposals....... 1. Tecnic will issue about 317m shares at 63sen each to acquire 100% Rohas. 2. Vendors of Rohas will offer to acquire all existing tecnic shares at 63 sen each under MGO. 3. Public offer and offer for sale of tecnic shares is also at 63 sen 4. Numbers of tecnic shares after the proposal will be about 414m compared to current of 40m shares. 5. Projected profit for Rohas is about RM22m. So EPS for expanded tecnic will be about 5.3sen for a PE of 12 considering IPO of 63 sen. Now I think you have a better idea how to value tecnic. Whole proposals suppose to be completed in 4Q 2016.
I think investors who bought tecnic more than RM1.20 Will be in trouble post the proposals. I think it will follow to as what had happend to symphony. During the rumours of RTO by Ranhill it shot up to 30 sen. Then came the announcements for the RTO proposals of at 16 only. Price dropped after that...........
Tecnic's last quoted price was 1.45. If we were to deduct the proposed cash refund of 0.49 sen and the vendor's offer price of 0.63 sen, to the existing shareholders, the premium is 0.33 sen. Is this too much to pay? It says a lot of the business acumen of the vendor, who at the time the company was taken private in 2006, the nta was 1.83, compared to the current 2.92 offer price. The direction where the share is heading will be depend on the three future quarterly results plus any positive news from the vendor, prior to the IPO. Let the market decide!
two shareholders have given notice to bursa to deal in the securities of the company......watch for they will sell or buy ...........my projection, they will sell ....considering the current premium.......monitor the bursa announcement please.......
I don't quite agree. A hedge fund, Long Term Capital Management, with two Noble Prize winners in their team lost 4.6 billion usd in 1998 in a matter of four months and had to be baled out with the help of the US Federal Reserve. Successful investment is in timing and if timed right, you win, irrespective of what you have between the ears.
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....
choop818
707 posts
Posted by choop818 > 2015-12-21 23:43 | Report Abuse
As expected because of UMA.