previously i own this share from IPO....it shoot up from 0.68 to 1.28 in the first day (in fact 1 hour if not mistaken) then drop until 0.3x.... lucky i sold mine before drop... buy this type of share really need to be BRAVE. :)
you are right, those directors will sell their trash shares again for u guys to absorb. If a company have cash of above 70 sen per share, do you think they will sell at 45 sen and 60 sen.
going back to 0.68cent IPO ,,,stay above 0.40cent ..able to absorb selling pressure at 0.415..then rebound to 0.43..tomoro to convince uptrend ..up or down..seeing the price pattern it is building uptrend base,,since the day the free bonus announcement ...gud luck.
Cap should announce 1 for 2 bonus warrant by these month according to proposal, these upcoming warrant have exercise price at 35sen. But cap also at the same time will private placement 10% share at 35 sen as well....Cap IPO is 68sen NTA: 49sen and have 20% dividend policy payout. Based on annual EPS of 12sen, potential dividend is 2.4sen, trading at undemanding PE 3.6x
If the exercise price of the warrant is indeed 35 sen, i confident the warrant when listed will fetch 15 sen above. So a windfall for those bought this share below 40 sen. And the company is making profit too. Hopefully different from the other China listed companies whom all are swindle. And with DRB-Hicom tie-up hopefully this is no hanky panky. Will see if they indeed annoucing any dividend in this year end. If still profit but no dividend then something is not right.
Otherwise should be promising and can made monies.
CAP already announce dividend policy to payout 20% net profit for year 2013 and 2014. With its consistent earning and strengthen RMB against RM, the upcoming Q3 result should record better result. Beside, Cap in actual is in net cash position, and together with private placement, Cap cash balance should even higher and afford to payout dividend.
Based on last financial result, cap have RMB 343m net cash, translating to RM 178m or 30sen/share, is about 2/3 of current share price is in the form of net cash.
My initial target price is above 60sen. It depends, as Q3 result may record higher earning, if just based on cap net cash deposit alone of RMB 343m, currency strength in RMB from 0.49 to 0.52 vs. RM , Cap already can reap more than 6% higher. With much improved China economy, Cap stand to benefit from recovery of its product and its weakness in its major input cost stainless, CAP should be able to command better margin more than 30%.
I think the private placement and warrant offer opportunity for shareholder/investor to average down their holding cost at 68sen IPO price and share price should response positively once the entitlement of free warrant is announce.
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....
max8
681 posts
Posted by max8 > 2013-04-09 15:40 | Report Abuse
X File will reveal...