Highlights

Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Sat, 26 Sep 2020, 4:29 PM

 

Dayang: Investors' Dilemma - Koon Yew Yin

Author:   |    Publish date:


All the shareholders who have sold their holdings when they saw the company’s 2 announcements; 1st one was the 1st quarter result and the 2nd was the right issues and share placement, are in a dilemma.

 

22nd May 1st quarter result announcement

Some shareholders sold their holdings at 90 sen when the company announced its 1st quarter ending March 2019 result of a small loss of 0.43 EPS. Since then the price has been going higher and higher to close at Rm 1.59 yesterday.

 

 

The main reason for the small loss in the 1st quarter was due to the monsoon which had affected the company’s operation of servicing the oil rigs in the open sea.

 

16th July Right issues and share placement announcement

Some shareholders sold their holdings at around Rm 1.45 per share when they saw the company’s announcement of the right issues and share placement on 16 July. They believe the right issues and share placement will depress the share price.

Obviously they are wrong because the price continue to go higher and higher to make a new high to close at Rm 1.59 yesterday. 

If they should have read page 30 and 31 of the announcement, they would not have sold their holdings. In these 2 pages the company pointed out its profit growth prospect and the long list of contracts which would keep the company busy for many years. Moreover, the price for the right issues will be fixed based on the average price of the 5 trading days before the X date for buying the right issues with a maximum discount of 50%. It is most likely be about 80 sen a share which should encourage more investors to buy more Dayang shares.

 

Those who believe the right issues would dampen the share price are obviously wrong.  

 

Short term investors and day traders are disappointed. 

As I said many a time before, no share can continue to drop or go up without a change of direction. The price chart shows that there were a few price corrections which have been quite small. As a result, short term investors and day traders who have sold their holdings are disappointed that they could not buy back what they sold at cheaper prices.

 

Based on the Dayang’s track record and its receipt of additional contracts, the 3rd quarter will report an increase of profit which will surely push the price higher. The 3rd quarter ending September result will be announced in before the end of November.

 

Based on the exceptionally large volume of shares traded daily, I believe many rich funds are buying quite aggressively to push the price up higher and higher.

 

Share this

APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate
 
 

497  407  524  653 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 ASB 0.175+0.005 
 KANGER 0.22-0.015 
 MUIIND 0.115-0.005 
 MTOUCHE 0.06-0.005 
 PHB 0.03+0.005 
 SAPNRG 0.105-0.005 
 CAREPLS 3.18+0.03 
 HLT 1.66-0.01 
 PARLO 0.40-0.15 
 PASUKGB 0.0750.00 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. TOPGLOV (7113) - Top Glove spent RM 354,738,027.11 in September for Share Buyback !!! Good or Bad? Bursa Malaysia Free Trading Education
2. Top Glove Investment: Is the EPF trading or investing?- A Misconception Van Gogh of Financial
3. 顶级手套业绩超越Maybank!股价却没反应,因为有一样东西悄悄地发生了变化!(Part 1/4) Valuation on Glove Sector - 陈剑 Good Articles to Share
4. LCTITAN - ALL-TIME HIGH SALES VOLUME AT ELEVATED ASPS, AND... Jom & Terry
5. (CHOIVO CAPITAL) LCTITAN (5284) Five Magic Words - Rising ASP’s, Falling Costs, Hurricane (or is it Butadiene?) Choivo Capital
6. 热门股:速柏玛 上挑RM8.99 南洋行家论股
7. (CHOIVO CAPITAL) LCTITAN (5284) - Rising ASP's, Falling Costs, Butadiene (Glove Proxy), Hurricane, Selling For Cash (A Summary) Choivo Capital
8. GLOVE makers return to top gainers list gloveharicut
PARTNERS & BROKERS