Posted by zbaikitree > 2015-12-11 17:06 | Report Abuse

http://search.yahoo.com/search?ei=utf-8&fr=aaplw&p=santa+song+lyrics

Posted by limsgn > 2015-12-11 21:20 | Report Abuse

SPLY TALK????

Posted by HYG > 2015-12-11 21:26 | Report Abuse

RSENA: The odds just got better

I will admit it upfront; I do not like SPACs or Special Purpose Acquisition Companies. According to Wikipedia, SPACS are shell or blank-check companies that have no operations but go public with the intention of merging with or acquiring a company with the proceeds of the SPAC's IPO. They reminded me of those insane companies that were listed in England in 1700s or 1800s where their main purpose was to invest in a business that would make a profit (obviously). What business would that be, you asked. They didn't say. And, they all quickly went bust.

SPACs have been around in the US for more than 20 years. As an asset class, its return has been very disappointing. Studies in the US have shown that "SPACs that have succeeded in making acquisitions have severely underperformed the overall market. Out of 162 SPACs that have come public since 2003, 91 (56%) have completed acquisitions and on average they have returned a negative 19.7% per year, compared to a negative 2.7% for the Russell 2000 small-cap index. In contrast, SPACs that are still looking for a combination partner or have announced a proposed acquisition beat the market by significant amounts." (The irony may be lost to some: you succeed by not trying!!!) For more, go here.

If you choose to invest in a SPAC, investorplace recommends the following process for evaluation:


First, who are the people involved in the SPAC? What is their track record? What areas of expertise do they have? Are they planning to purchase something in their wheelhouse of expertise? Have they launched other SPACs and how did those perform?

Most importantly, only select a SPAC that wants an acquisition in an area you understand. It’s no different than buying a stock in a business you understand.

If you feel like management and sector pass muster, then you can buy in.

The next step is to evaluate the potential acquisition once it is announced. While you should read everything the SPAC provides, you should then set it aside and do your own due diligence as if you were buying the company yourself. Remember, once you approve the acquisition, you’re stuck with the company. If it craters, so does your investment. You don’t have to approve the acquisition. You have the option to cash out and get your money back.

One last thing — if a SPAC is headed for an acquisition, then abruptly changes course, get out. It means management didn’t get the deal it wanted, was running out of time to make a deal, and is probably grasping at straws.
Let's comeback to Malaysia. We have seen a spate of SPACs listed in the past 2 years that specialize in the Oil & Gas sector. Fortunately for the management and unfortunately for the shareholders, the O&G sector went South in the past few months. The front runner, Hibiscus had seen its share price dropping to less than RM0.30. This stock was listed in 2012 at an IPO price of RM0.75.


Chart: Hibiscus's monthly chart as at dec 8, 2015 (Source: ShareInvestor.com)

This morning we have the listing of RSENA, a new SPAC that will invest in regional F&B sector. Its sponsors include 2 former senior executives of Fraser & Neave, one of the best managed F&B companies in Malaysia. To me, RSEAN satisfied 2 points - management expertise and sector familiarity - that would put many investors at peace to part with their money.

Mercury Securities valued the stock at RM0.60 based on the assumption of a 20% over the IPO price. To everyone's surprise (mine included), RSENA opened at RM0.385 while the free warrant opened at RM0.095. This means that an investor who bought 1 RSENA at RM0.50 and received 1 free RSENA-WA would be sitting on a paper loss of 2 sen.

The term of this SPAC requires that 92% of the gross proceed be kept in a Cash Trust Account. Because the management team got their 20%-share at special price of RM0.05 per share, the amount of gross proceed would be about RM410 million (consisting of normal shareholders' contribution of RM400 million & management's contribution of RM10 million). If 92% of this amount is set aside, that means RM377.2 million will be sitting in the Cash Trust Account until a qualifying investment is completed. On paper, each share has a cash backing of at least RM0.38 (rounded up to the nearest sen).

If you like the F&B sector of a fast growing region & you have faith in the 2 former F&N executives (Joseph Tan & Datuk Tan Ang Meng), this could be a good stock to consider. RSENA is an interesting stock for speculation (for now) as it trades at or below RM0.38.

(Note: Those who bought into Hibiscus at RM0.60 in September 2012, would have made a decent profit if they had taken profit after the announcement of the qualifying investment.)


Diagram: Terms of RSENA (Source: Mercury Securities)

Posted by ruslimz > 2015-12-11 21:48 | Report Abuse

correction.........trust account is only for public offer which paid 50 sen per share. Management portion 5 sen will not be kept in trust account. So 92% from 50 sen is 46 sen. Meaning cash backing for each shares is 46 sen, not 38 sen......

Posted by HYG > 2015-12-11 21:56 | Report Abuse

1. Mercury Securities valued the stock at RM0.60 based on the assumption of a 20% over the IPO price.

2. RSEAN satisfied 2 points - management expertise and sector familiarity - that would put many investors at peace to part with their money.

Posted by DreamDominator > 2015-12-11 21:56 | Report Abuse

wolume goot

Posted by stockraider > 2015-12-11 22:02 |

Post removed.Why?

Posted by bomoh > 2015-12-11 22:02 | Report Abuse

Apa nak ciakap? Naik turun pun goot wolume jugaa...

Posted by Kim > 2015-12-11 22:10 | Report Abuse

Monday will show clear direction.. 0.45

Posted by stockraider > 2015-12-11 22:22 |

Post removed.Why?

Posted by stockraider > 2015-12-12 10:14 | Report Abuse

Red Sena Series by Stockraider

Quote from: paperplane3 on Today at 12:05:08 AM
Red sena, I have doubts

Raider Comment;
What doubts ?
The successful formula and margin of safety are all highlighted to all transparently mah....!!

Don get Raider wrong, Raider is not promoting this counter desperately....but investlah members got the wrong perception, perhaps it is right thing to address it loh...!! Too avoid missed opportunity mah.....!!

Would it better to leave them ignorant, and enjoy the money making opportunity all a lone ?
Yes in long run raider....will be creating competitors, but it is ok loh.....it is noble to be generous,,,,just like raider's mentor, allies and friends have been generous to raider too mah !!


Quote from: Oly Shyte on Today at 01:15:31 AM
Is there any margin of safety and fundamental and good corporate management?

Raider answer;
a)Margin of safety is buying below cash level of Rm 0.46, don't forget u get the interest earn in the trust, if there is a payout mah...!!

b)Good corporate governance; Please read the Rsena prospectus, u will find so much positive improvement compare to the previous spacs....also the promoters had volunters additional safeguards btw " NOT REQUIRED BY SC".
Raider is amaze by the promotion unexpected voluntering their extra commitment loh....!!

The commitment is from the heart and not bcos of regulation. This confirm their confidence & long term commitment loh....!!

c) Finally fundamental: It is part of margin of safety raider has mentioned rarlier and its business prospect.
Raider think F&B spacs are easier to get quality & stable QA compare to current O&G sectors

Posted by sheep > 2015-12-12 10:23 | Report Abuse

promoters coming in promoting strongly, beware.

"Mercury mentioned a combine fair value Sena of mother & warrant of Rm 0.60....if Raider break it down, it will be;

Mother Rm 0.445
Warrant Rm 0.155

The potential gain for warrant is tremendous loh....!!"

Exercise price for warrants is 0.50. Mother need to go above 0.655 in three years. If no QA in three years, mampus..

Someone might be pumping dan dumping warrants.
WAKAKA

Posted by stockraider > 2015-12-12 10:36 |

Post removed.Why?

Posted by sell > 2015-12-12 10:52 | Report Abuse

Hibiscus(also SPAC) IPO price 75 sen now 24 sen. How sure Red Sena won't be the same? SPACs is good for founders(cost 0 any price sell is profit for them) not us ikan bilis investors.

Posted by ktsk88 > 2015-12-12 11:08 | Report Abuse

I would prefer the mother than warrant. Anything below 40 sen still can consider but above that is not advisable unless the stocks is near expiry without any QA in sights which you can bet on the returns of capital sum higher than the cost you goes in.

Posted by WINNING > 2015-12-12 12:29 | Report Abuse

So Raiders means this counter can buy only below 0.40 cents and above cannot buy ?

Posted by stockraider > 2015-12-12 13:01 |

Post removed.Why?

Posted by sheep > 2015-12-12 13:16 | Report Abuse

never listen to analysts. they are in cahoot with syndicates....
Do your own analysis based on history and facts.
Hibis, cliq, sona reach..all going to holland

Go to any sundry shops, supermarket, hypermarkets see how many types of products on F&B. How can you fight them?
Everyone tightening their belts.....Most with strong brand names can survive... newbies?
I will monitor for one year, then see see. wakakakaka

Posted by stockraider > 2015-12-12 13:33 | Report Abuse

For Spac U must understand what u are buying mah.....!!
U r buying a cash hoard worth Rm 0.46 with compound interest for 3 yrs...at a price much lower mah.....!!

For Warrant....u r confident with the management & buying into a 3 yr option at a fraction of the cost of investment with extension of another 8 yrs if QA is successful, knowing & having the faith that the management will do it.
Bcos the management are committed to the successful cause & aspiration...!!

Posted by fl888 > 2015-12-12 14:13 | Report Abuse

Having nearly RM400 million in cash , not taking into their coming private placement shares at 50cts, and just listed in the present market condition gives Red Sena a good opportunity to acquire partly or fully certain F & B related companies to their advantage as compared to other SpAC involved in Oil & Gas sectors...

Posted by MG9231 > 2015-12-12 15:01 | Report Abuse

This Redsena's directors are not entitled to draw big remuneration
Thier shares are under moratorium until 2 conditions are fulfilled
1)for 36 months after they get QA and
2)must make sure that Redsena's make good of cumulative PAT of at least $107m
So, rules are tighten if compare with previous SPAC

Posted by HYG > 2015-12-12 15:23 | Report Abuse

fl888 and MG9231, thanks for your explanation.
This SPAC is totally different from previous oil&gas in term of commitment and sector.

Posted by stockraider > 2015-12-12 15:27 | Report Abuse

Posted by MG9231 > Dec 12, 2015 03:01 PM | Report Abuse

This Redsena's directors are not entitled to draw big remuneration
Thier shares are under moratorium until 2 conditions are fulfilled
1)for 36 months after they get QA and
2)must make sure that Redsena's make good of cumulative PAT of at least $107m
So, rules are tighten if compare with previous SPAC

RAIDER COMMENT;
THIS MEAN THE PROMOTER NEED TO PUT IN THEIR OWN MONIES FOR ITS REMUNERATION....APPOXIMATELY RM 20M OWN CAPITAL FOR 3 YEARS.
U THINK THE DIRECTORS JUST WANT TO START A SPAC FOR JUST PLAY PLAY MEH ?

THIS NEW SPAC IS A SERIOUS BUSINESS MAH.

Posted by MG9231 > 2015-12-12 15:52 | Report Abuse

It shows he promoters are serious and wish to build a business for shareholders as well as for themselves.

Posted by sheep > 2015-12-12 18:00 | Report Abuse

Seroius business? or con punya.
Those who got ipo (only few lots) was waiting to sell for a small profit. What happened? Straight away sold down big big at 0.385 and warrants up up at 0.085. Syndicates no shares then. Now collected big big to pump pump and sell slowly.
Last round musical chair fellows don't get caught like others failed spac.

Posted by stockker > 2015-12-12 18:11 | Report Abuse

If no QA within 3 years, mother shares holders still get back money whereas warrant holders all habis,

Posted by Seek > 2015-12-12 19:09 | Report Abuse

Thanks Stockraider. When everyone is fearful u collect! I like the way u do it!
The margin of safety is there for the mother share.
May I ask what u think of Pmcorp's capital repayment of 8cts per share?
Sorry have to ask about pmcorp in this forum, as Stockraider is not there.
Thanks.

Posted by stockraider > 2015-12-12 19:27 | Report Abuse

Seek....no problem!!

Pmcorp is also in raider radar too, bcos there is good value loh....!!
I think the short target with capital repayment of Rm 0.08, the target rerating price is Rm 0.28 to Rm 0.32....within this 6 mths...!!

The price will move up closer to the payment date....!!

At this price of Rm 0.23 to rm 0.24 still can buy mah....!!

Posted by sell > 2015-12-12 19:30 | Report Abuse

If the F&B Red Sena going to acquire is good, why present owner want to sell. If I am present F&B owner I will ask for high price if my business is very profitable.

Posted by sell > 2015-12-12 19:46 | Report Abuse

RM 10 million-management remuneration is certain gain to cover Raintree investment in Red Sena. There is 35 sen gain for mother and 10 sen gain for warrant for their 5 sen capital of 20% stake. Duit buta if do nothing after 3 years.

Posted by stockraider > 2015-12-12 20:50 | Report Abuse

Talk like "SELL"....sure owner of company has no incentive to make monies loh....!!
There must incentive for them ( promoter) to make monies & ensure their risk capital & effort offer a good return loh.....!!
Try not to be jealous of their bounty profit....of promoter, bcos they are taking a big risk too....!!
If so easy can make monies....why not many many people become promoter of spacs loh.....!!
The initial risk capital of the spac owner of Rm 10 to Rm 20 million are consider their sweat monies to ensure the SPAC can be successful mah....!!

Posted by stockraider > 2015-12-12 21:12 |

Post removed.Why?

Posted by richkid1 > 2015-12-12 21:13 | Report Abuse

What about buying people F&B biz. If profitable why present owner want to sell?

Posted by stockraider > 2015-12-12 21:30 |

Post removed.Why?

Posted by stockraider > 2015-12-13 08:48 | Report Abuse

There is some relevant question on RSENA loh;


Quote from: Richard188 on Today at 12:30:50 AM

Raider, Rsena is a Tin 0 No income, how come got Margin of safety I still dont understand. ? Can u explain more detail .

As refer:-

05. Avoid rubbish shares.
Shares with high borrowings and little or no earnings and no dividend yields are too risky to get involved. All companies that fold are those with high debits they cannot service.
YES....HIGH DEBT CAN CAUSE HIGH DEFAULT RATE.....TRY TO AVOID HIGHLY GEARED COMPANIES MAH...!!


Raider comment;

RSENA IS ACTUALLY AN ACQUISITION DEPT WITH PURE CASH TO DO QA MAH....!!
WHEN THEY IDENTIFY THE QA, WE CAN STILL DECIDE TO STAY ALL RUN MAH....!!
I DON UNDERSTAND WHY U SAY HIGH DEBTS ?

RSENA IS NOT NO INCOME.....IT IS A MAX 3 YEARS FIXED DEPOSITS WITH OPTION OF CAPITAL GAIN.....IF U BUY AT RM 0.40 THE COMPOUND RATE RETURN OVER 3 YRS, IS 7% PA BASED ON DCF MAH......!!
BUT IF QA HAPPEN THE PRICE MAY MOVE HIGHER ALSO LOH....!!
A MIN RETURN ALREADY ESTABLISH THIS IS CALL MARGIN OF SAFETY MAH....!!
SO HOW CAN U CALL SENA RUBBISH STOCK LEH ??

Posted by stockraider > 2015-12-13 08:52 | Report Abuse

Another valid question on Rsena....!!

Quote from: paperplane3 on Today at 08:20:37 AM

My question and doubt still is this. Can a person previously ceo of jpmorgan, Goldman Sachs come together can build another jpmorgan, Goldman Sachs like invt bank? I doubt so....


Raider comment;

LETS PUT IT IN A PROPER PERSPECTIVE LOH.....!!
NOT TALK GOLDMAN SACH OR JP MORGAN MAH.....!!

PEOPLE LIKE LIEW KEE SEN OF FORMERLY SP SETIA, NOW HAVE ECOWORLD WITHIN 2 YRS MAH......!!
IT IS POSSIBLE BCOS THESE PEOPLE HAVE THE BACKGROUND AND EXPERIENCE LOH.....!!

NOW COMEBACK TO RSENA.....IT IS POSSIBLE LOH.....IF NOT, U TAKE BACK YOUR CASH EQUAL TO FIXED DEPOSITS OF COMPOUND RETURN OF 7% PA LOH.....!!
WHAT TYPE OF EQUITY INVESTMENT ALLOW U TO TAKE BACK UR MONIES ?

Posted by DreamDominator > 2015-12-13 09:16 | Report Abuse

Good discussion. Keep it going.

Posted by DreamDominator > 2015-12-13 09:19 | Report Abuse

StockRaider, you seem really bullish on this one ...

Posted by DreamDominator > 2015-12-13 09:32 | Report Abuse

Posted by sell > Dec 12, 2015 07:30 PM | Report Abuse

If the F&B Red Sena going to acquire is good, why present owner want to sell. If I am present F&B owner I will ask for high price if my business is very profitable.
_______________________________________________________________________

Good question. Well, there is often a good business reason for every business decision. Point is, if this stock is a good one, by the time one obtains an answer satisfactory enough to oneself, one wud hv missed da boat if there is an upcoming run up.

So, would one rather wait for an answer one likes and miss da boat, or would one trust one's instinct and board da boat earliest ... Now, that is the call one needs to make ...

Posted by DreamDominator > 2015-12-13 09:45 | Report Abuse

Well, not just instinct, but instinct allied with company fundamentals, company prospects, company strategy, company management & leadership profile, company public perception etc. etc. etc. ...

Posted by nekosan > 2015-12-13 10:14 | Report Abuse

this round will goreng to 70 cent.

Posted by buy_n_die > 2015-12-13 13:15 | Report Abuse

Hibiscus(so call cash rich) IPO 75 sen now SPAC graduate 24 sen. Red Sena next one?

Posted by buy_n_die > 2015-12-13 13:17 | Report Abuse

If follow Hibiscus when Red Sena become graduate SPAC TP Red Sena 13 sen?

Posted by Xinghe > 2015-12-13 13:28 | Report Abuse

Agree with lextcs. If the business Red Sena going to acquire is very profitable why not their owner go for IPO themselves. Why must share their profit with Red Sena?

Posted by lextcs > Dec 11, 2015 03:06 PM | Report Abuse
just ask yourself this : why would someone who claims to be experts in this F&B industry wants to raise funds via a spac to acquire other f&b companies? Wouldn't it be easier to establish their own company with 100% control, with their own brands, run profitably then list it via a IPO? of course scamming is much easier and a faster way to laugh all the way to the bank

Posted by Xinghe > 2015-12-13 13:29 | Report Abuse

Agree with lextcs. If the F&B business Red Sena going to acquire is very profitable why not their owner go for IPO themselves. Why must share their profit with Red Sena?

Posted by lextcs > Dec 11, 2015 03:06 PM | Report Abuse
just ask yourself this : why would someone who claims to be experts in this F&B industry wants to raise funds via a spac to acquire other f&b companies? Wouldn't it be easier to establish their own company with 100% control, with their own brands, run profitably then list it via a IPO? of course scamming is much easier and a faster way to laugh all the way to the bank

Posted by pitpit > 2015-12-13 13:37 | Report Abuse

cocoaland is profitable, the owner is looking for buyers every year. Old already,children not interested to take over, so sell loh. Sena will look for these kind of companies...of course this kind of biz won't be cheap if just value their local market biz. But Tan Ang Meng's team wanna use this as platform to expand to Asean, then this will be a different story.

Posted by sell > 2015-12-13 13:43 | Report Abuse

Can Red Sena buy a listed company? I thought they can buy only unlisted one.

Posted by stockraider > 2015-12-13 13:58 | Report Abuse

Quote from: paperplane3 on Today at 09:45:18 AM

Lies of spsetia is a very special case loh! He is technically ousted out of sp setia! He unwillingly have to let go so his big team follow him jump ship!
But will tht be the same case? These fnn ceo, CFO retired and now form a new company with no track record! U think fnn team wanna jump ship together like spsetia case? What makes them so great tht ppl wanna follow them? I doubt so.with so well paying and easy life in fnn, ppl will not be willing to join them!who wanna take risk even though they are very good? Who willing to strt from scratch? How good is the reward? Same if u ask if a jpmorgan staff whether they going to a strt up venture company, starting from scratch again? Maybe or maybe not? If u a topgun in jpmorgan earning 24months bonus, what makes u wanna leave?

Raider comment;

Does it really matter ousted or jump ship or retire ?
Most important it is proven it can be done in Ecoworld mah......!!

Why raider try to stay clear of JP morgan type bcos these are extremely large company about USD 200 billion cap....50% of the whole klse, it has 200 yrs of history.....how can individual start up n build equivalent within 3 yrs leh ??

As for Rsena, it got the cash....to acquire a good business with mkt cap Rm 300m to Rm 600 is a much simpler matter mah...!!

Posted by stockraider > 2015-12-13 13:59 | Report Abuse

Quote from: paperplane3 on Today at 09:48:20 AM

Yes, I understand this. If nothing happen within 3yrs, u get back your money! But 3 yrs I might have earn100% return, following stockraider, stockgod, OTB recommended stocks. 100% is a huge opportunity cost....but if it can return more than 100%, I am willing to buy loh. The doubt now is whether they can do it or not....it is a tough question to me. But no harm I put little money here also...small knife cut big tree someday?


Raider comment,
The 3 yrs....of 7% pa is a benchmark for minimum return loh.....!! It is ur margin of safety mah..!!
If QA happen within 1 yr the return can be as high as 20% pa mah.....!!

Getting return...of 100% pa....sustainablity for long term is impossible mah......!!
Even w.buffet the world greatest investor only get about average 20% pa loh.....!!

Posted by DreamDominator > 2015-12-13 14:18 | Report Abuse

Posted by buy_n_die > Dec 13, 2015 01:15 PM | Report Abuse

Hibiscus(so call cash rich) IPO 75 sen now SPAC graduate 24 sen. Red Sena next
_______________________________________________________________________

@B&D: Hibiscus, as well as all the other O&G stocks, hv all been whacked down by low oil price ... You ARE aware that RedSena is not a O&G SPAC, right? ...