If nobody going to subscribe rights,all the warrants will be in PNB 's hand.Probably warrant price will be in the high side.As warrant is more easy to push up
hng33 has explained very well the strategy for minority investors. Still I will not rush to buy even at $0.28. Better wait until the 3rd Q results released in Nov 17 which may be disaster if the management decide to impair the value of the rigs.
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Would the warrant command any value if price remains below 0.395? Impairment will only be evaluated in Q4. This company doesn't impair on quarterly basis. But the Q3 result will tell whether this company can make money with all their rigs contracted.
I don't have any OR otherwise I will go & subscribe.if PNB put their money in FD with 4% interest instead of subscribe into rcps-i.Every year they will earn 4.85bilx0.30x4%=58mil.I don't think they want to lost 58mil every year.Every drop of share 0.01,they will additional lost 4.85bil x 0.01=48mil
Whether impairment will be reversed or not depend on whether they can be profitable when all the rigs are contracted out, which is happening in Q3. For me, I will just refer to the open market value of a new rig. The last I check, ship yard was offering around USD155m for a new rig. Most of their rigs were purchased at a cost between USD180m to USD240m during the good times.
GLCs can never be compared to entrepreneur driven companies like Senergy or Armada. The management team in a GLC will work for their own self first because they don't own the company. If the company loss money, worst thing is no bonus. None of them will ever be retrenched.
UMWOG is transforming to be next Sapura Energy Bhd..... HUGE EXPLOSIVE POTENTIAL... projects will flow in from Petronas.... same strategy to help local oil and gas player to compete with global companies but it works all the time because it is GLC linked!
Despite these sombre assessments of the company, main shareholders remained committed to the company more so after its major and biggest shareholder Permodalan Nasional Bhd’s (PNB) says it will absorb their portion and the excess rights issuance that the other shareholders did not want to subscribe to.
Since then the Employees Provident Fund (EPF) had increased their stakes in the company even post the capital distribution.
The EPF had increased their stakes to 9.545% from 9.167% after the capital distribution was effected.
While the Retirement Fund Inc (KWAP) had also seen their stakes increased to 6.698% after the capital distribution was taken into account.
Given these circumstances and after the reiteration of PNB’s commitment to the company, it is quite likely that the worst is over for UMWOG. After all, a strong shareholder is what is most important to a company during volatile times such as this
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ampabella
1,378 posts
Posted by ampabella > 2017-10-06 13:49 | Report Abuse
Pnb playing a waiting game, siapa cannot wait sure tah Pau