The MGO is priced at steep discount (>30%), this is because they have to make the offer by law, but they don't want people to accept it and therefore triggers full takeover and taking IJ private. So give a lousy offer that no one wants.
This is because maintaining a listed status is one of the objective of this corporate exercise.
mother 0.245, warrant 0.11, exer price 0.35......warrant premium 87.75% considered high....will warrant price drop further or mother price rise higher?
IDEAL JACOBS: (MYR0.34) First job win under new business; will it be a bumper year? Maybank IB Retail Research
Ideal Jacobs announced that its wholly-owned subsidiary, Widad Builders S/B, was appointed as the main contractor for the proposed PP1AM project in Kota Kinabalu, Sabah. The project involves the construction of 301 units of single storey link house as well as its related infrastructure works. The development, which is based on “Design and Built” concept, is worth MYR71m.
The construction will take 24 months to complete, and could potentially contribute to FY19-20 earnings. This contract win suggests that the acquisition of Widad Builders S/B, which was completed on 10 Jul 2018, has started to bear fruit. A point to note, Ideal has disposed of its manufacturing, fabrication and trading businesses, and therefore, Widad will become its key contributor going forward.
This job win aside, Widad originally has secured contracts worth ~MYR1.3b in total to, among others, provide facilities management for buildings, conduct upgrading works on sewage treatment plants and pipe installation works. One of the notable IFM job is to provide integrated facility management services to the National Palace located in Jalan Duta, Kuala Lumpur.
Following the completion of the acquisition of Widad in Jul 2018, Ideal’s earnings could improve significantly in 2H18. For comparison, Ideal reported a PATMI of just MYR0.9m (including discontinued operations) in 1H18 while Widad reported a PAT of MYR36.9m in FY16. It is also understood that Widad is bidding for IFM and construction contracts worth ~MYR2.1b in total.
Ideal’s 1H18 results is not a reflection of its new business. Pending the consolidation of Widad’s results, Ideal’s share price performance will likely be news flow driven. That said, if Widad can repeat what it achieved in FY16, i.e. a PAT of MYR36.9m, it would translate into an EPS of 1.5sen, translating into a P/E of 22.7x. Note that warrants are not included in EPS computation as they are out-of-the-money.
If you look at their profit margins, and work to be delivered soon.... I guess it is going to explode next year!!!!
Many stories can be told. Ask icon8888, he the correct person for this type stock, turn ard stories. I rather hold my elephant panamy for now. Every stock down 30%, my panamy giving me decent div still. I love Japanese, just like the japanese av. If you get what i meant.
Just don't understand why they want to issue so many shares at one go,near 3bil shares, that's crazy.......I rather they issue lesser easier to push up prices faster,just like kesm
Just don't understand why they want to issue so many shares at one go,near 3bil shares, that's crazy.......I rather they issue lesser easier to push up prices faster,just like kesm
Well, if it can turnaround successfully by the new owner i guess it will be lucrative. 3bil jobx18%margin, you guess the avg annual profits for 4 years see.... It is definitely very good
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....
Magis
175 posts
Posted by Magis > 2018-02-26 13:56 | Report Abuse
con man company