Price will drop once the right issue is given to shareholders. Based on current price of 0.515, the price will drop to around 0.35 (known as theoretical ex right price). In order to be neutrally impacted by this price drop, shareholders must subscribe to the right share at 0.30 so that the average cost is also reduced at the same time. Shareholders can also sell the right issue but I doubt it will command much value and need to sell within 5 workings days normally. If you do nothing, you will lose out on the discounted value.
Umw will give out the shares of Umwog as dividend. Already approved in umw's egm. Umwog is too big for umw to hold and consolidate its liabilities into umw. It will severely affect umw's gearing besides dragging its financial result down. I am sure very about this ever since from the beginning. It is by giving out the umwog shares that pnb can hold umwog directly and thereafter, underwrite the entire right issue.
this counter does not look good.... wtf.... 30 sen... scary... from few rm become 30 sen... wtf lah... where got so bad? playing a fool company? see dialog, see coastal --- still making money mah.
Dialog got downstream, not so much affected. Coastal also badly affected from RM3 now is RM1 something. This umwog just keep on buying asset during the good times without doing a stress test on their investment model. Well, when there is always pnb behind them, what is there for them to worry.
Funny counter and weird investors. When investment banks were quoting TP between 68 to 80sen everyone were trading at around 91 to 95sen (above TPs). Now IB 54 to 91 sen not many buyers dares to buy at 50.5sen(below TPs).
We shall be buying at RM0.42. Rights issues always create short-term havoc (for good reason). But once we get past that, UMWOG should be on a road to recovery. No point rushing, it will fall lower still. Buy it at truly depressed valuations.
UMW HOLDINGS BERHAD Distribution of 1,204,777,400 ordinary shares in UMW Oil & Gas Corporation Berhad ("UMW-OG") ("Distribution Shares"), being the entire shareholding of UMW Holdings Berhad ("UMWH" or "Company") in UMW OG, to the entitled shareholders of UMWH. Kindly be advised of the following : 1) The above Company's securities will be traded and quoted "Ex - Offer” as from: 3 Jul 2017 2) The last date of lodgment : 5 Jul 2017
This company is not good to investors continue invest.. the right issue offer 30sen saja.. one lot will get RI 2.8 lots@30sen..and every 4lot will free one warrants.. the news I read in past.. wat the fuxk company going..cheat investors money again?? Think yourself.. it is no longer with UMW company
Won't take up rights. What for. The contracts they getting are so small and won't make a difference in their P and L. Laughing stock. Longer term, they might play up the stock. But when is the question. Har har. I got out at right time, only got back capital. Sore lar.
based on market price, your ex right issue price is 34 cts, 4 cts above RI price. likely more selling pressure after RI the free warrant price, your guess? 3 or 5 cts? one for 4, average not much to make? not worth the effort
Invest to this company because of UMW. Now no more relationship... the RI make ppl think wat is the future in this company.. since wrong decision was made earlier, just cut loss for my pespective.. looking for others....
This might represent a good buying opportunity if you have a long, long holding period. Buy the shares now, subscribe to the Rights Issue...then forget about it for 5 years. By end of five years I am sure the company will have returned to good profitability, share price probably at RM1++, making you a handsome 2.5X returns.
Short term, the currents are against it. But long term I think the company should improve.
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....
offshore
327 posts
Posted by offshore > 2017-06-13 08:36 | Report Abuse
Price will drop once the right issue is given to shareholders. Based on current price of 0.515, the price will drop to around 0.35 (known as theoretical ex right price). In order to be neutrally impacted by this price drop, shareholders must subscribe to the right share at 0.30 so that the average cost is also reduced at the same time. Shareholders can also sell the right issue but I doubt it will command much value and need to sell within 5 workings days normally. If you do nothing, you will lose out on the discounted value.