You may NOT see any meaningful dip as buying opportunity. Very few willing to let go until insurance business disposal completed and /or privatisation news which are in the last look lap already. Perhaps the IBs who are in discussion with the Management in handling the transactions privy to the information and that has caused the limit up last week. Otherwise, how to explain the price limit up last Thursday?
You may miss it totally should there be another limit up like last Thursday. Next price limit up may come when insurance sales completion or privatization is announced. But we don’t know if it is going to be tomorrow, a week later or a month later . Better hold on to what you have if you truly believe in its deep value.
@AllanTingAS,. I did the same thing early last month and sold quite abit at $1.05-$1.07 . This was because many times it reached above $1.05 it dropped back to below $1.00. I thought could trade to pocket a few percent gains by buying back below what I sold . Unfortunately, that never happened.
I am more lucky, able to sold when they limit up. Then buy back again and this already few rounds. Now Q at RM1.28 ~ 1.25 in batches strategy. Some extra pocket money.
Ya. Looks like sales of insurance unit to generali is a done deal pending announcement only . Generali is seeking to buy more general insurance assets in Malaysia to strengthen to No2 position.
Question investors have to ask is what MPHB capital going to do with over $1bil of cash and liquid investment after the insurance disposal? Ever since listing , the company has not shown any interest at all to take on new business ! Will the huge cash piie be used to reward shareholders handsomely in special dividend, afterall shareholders get zero return for long 7 years ? Will the controlling shareholders use the money to undertake SCR exercise ie aking the company private? If privatisation is the game, minorities have to be smarter not to give in easily as the RNAV may be in the tune of $6-8 per share and about $2 is in cash and liquid investment.
Per shareholders list as at 29/3/21 appears in 2020 annual report, I notice quite a few shareholders in the 30 largest list have their shareholding increased quite substantially vis-a-vis the daily traded volume in the past 1-2 years. These shareholders appears to be the 'friendly parties'. 2 new funds ie affin hwang tactical fund and SSBT emerging fund make it to top 30 list for the first time . Something to think about .
Key point from AGM yesterday: 1. Ongoing insurance unit divestment:. Remain a few issues to close the gap with Generali. ( I guess relating to final pricing) 2. After completion of the divestment, the priority is to pay dividend to shareholders . ( No mention of quantum,. Shareholders should demand full payout from the proceed which may be $800+ mil based on completie disposal of insurance unit) 3. Business Direction :. Nothing as usual apart from maintaining small business in the hospitality and JV property project. CEO emphasize low capital investment
Sales of insurance unit is completing within months. Complete disposal of insurance unit rake in a total of over $700 million which work out to be about $1 per share . Can expect huge dividend payout without BNM restriction.
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....
Jeffreyteck
4,247 posts
Posted by Jeffreyteck > 2021-03-07 09:36 | Report Abuse
Uma uma, hopeless. Just investigate potential insider trading.