Random Trading
Series of shrewd corporate moves by Robert Tan
Random Trading
Publish date: Sat, 16 Aug 2014, 11:44 PM
Random Trading
0 44
Too dumb to be an expert, too green to called a veteran and certainly not an insider. what's left..... RANDOM!
Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision.
Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision.
The recent spike of the share price of several counters that link to Tan Sri Robert Tan has makes the low profile tycoon came into the limelight of local business world. Here are some his latest moves :
First the tycoon disposed of his PDZ shares to MARA institution for roughly 47 Million. Personally I think is a good cash out from the loss making company with a good selling price of 18 sen per share considering the share only trade at around 8 sen per share early this year.
Then there is the GBH deals that saw the tycoon shifted the company's prime land asset to his another company Keladi and selling off his shares of GBH for not less than RM 2. (This is because Dynac's proposed RTO will trigger the Mandatory General Offer for the rest of GBH shares at a price of not less than RM 2 according the proposal) GBH ceramic business is not too exciting thus one can't help to wonder that the sole motive of the tycoon bought into this company in the first place is this piece of prime land. This is an excellent move which not only the tycoon didn't lost control of the prime land, but he will be able to offload his shares of the remaining GBH that without the prime land to Dynac at a price of not less than RM 2. Currently the share price of GBH is hovering around RM 2.20, if he offload his remaining 119 Million shares at this price which means he will be able to walk away with almost 262 Million cash together with that prime land. What a genius move. Remember, the share price of GBH is just hovering around RM 1.30 early this year before the spike of the price. Can it be any better than that?
Keladi is a cash rich company and will have no problem financing the purchase of the land with internal generated fund. After the purchase, the company will be transform from a low-medium cost housing developer to a luxury residential project developer. If there is a need for cash call in future to fund the development of this prime land, the tycoon can easily increase his stake in the company through private placement with the almost 300 Million that he cash out from PDZ (47 M) and GBH (262 M)
So after these genius moves, does the tycoon has more to come? The 3 other listed entities: Jaskita, Marco and GPA all have clean balance sheet with minimum debt. In fact Jaskita and Marco are net cash companies thus make them a great RTO target. Thus it is interesting to see whether there will be any further RTO involves the tycoon's entities.
Also, don't forget the tycoon's another listed entity FCW which involve in property development. Since Keladi and FCW have the same business nature, may be there is a possibility that the tycoon might further streamline its business by merging the two company.
One can't help to admire the team behind the scene that help the tycoon put those deals together. It is certainly interesting to see what is the next move by the tycoon.
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1 person likes this. Showing 8 of 8 comments
good morning random trading aka syclac99 :) wud like to take this opportunity to thank you for your magnificent piece on 2nd wave anticipation. loving it to bits coz this 'anticipation theory' has been on my mind and VIOLA u penned it down with such clarity and lucidity :) am putting it in practice for my swing trades ! my next 'project' is to think about scalping and intra-day trades ... hmmmm perhaps one day u will come up with another brilliant piece for such trades :) i was reading how this guy scalps on 5min chart with 10sma yesterday ... pretty cool and interesting ! once again merci and have a wonderful sunday :)
2014-08-17 08:56
Haha. Thanks Connie. Act I had this observation for quite some times bt it seems like I'm the only one that thinks that way. Now at least I know there is some one think the same. Act I should thank you for that. As for scalping n intraday trading, I'm not sure I'm qualify enough to do so. Bt if I have some thing to share abt it then I will post it. One thing I know sbout intraday n scalping is that discipline is the utmost important thing. Also, most of the method I studied from foreign market trader especially those from US are not suitable for bursa due to the different market behavior. Especially our local stock daily range is too tight to apply their method. Anyway keep learning n progress is the only way to survive in the market. U too have a wonderful Sunday!
2014-08-17 09:53
RT .. your haha makes me feel like i have known u for a long time :) :) yeah u are probably rite that wat we read from the net may not apply for our big bad bursa but it's a good start nonetheless ... am looking at lbalum with its sudden surge in vol and price at past 3pm !!! plotted just 3 indicators on 5 min chart - 10sma, vol and rsi ... it may pretty much work for scalpers ! another general rule of thumb i read is that if the price spike exceeds more than 2% of 10sma then pass coz it's not worth a while to take the risk ! RT .. sincerely hope that u cud share more of your trading techniques with us so that newbie like ME can survive in the market and make some moolah for a beer or two ... CHEERS :)
2014-08-17 15:33
RT .. did u notice u have the same initial as ROBERT TAN ??? :) are u as shrewd as he is ????? hmmmm ... one day u shud write "series of shrewd trades by random trading" !!!!!
2014-08-17 15:42
Haha. I didn't even notice it. Well is just a coincident. I certainly dare not to compare myself to the tycoon for thousand years. To be like them, u need certain characters. u know what I mean. I don't think I'm cut out for it. I just hope to trade the market in my small way bcoz learning about trading and trading itself offer a lot fun and satisfaction. Just hope that more individual investors and traders can make money more often from the market instead of being the feeder to the selective few. Of course there is certainly no way we can beat them but if we can have more successful trades then not only we can actually make money out of it but also makes it more difficult for them too make money as well. Is always bad for the market if it is too cornered.
2014-08-17 16:49
oohhhh RT ... i do know what u meant by certain 'characters' !! corporate tycoons not only need to be shrewd but also not being too compassionate (in other words cruel ... oops). if RT is not cut out for that then i can only conclude that u are a good person :) oh yes ... one can derive so much fun and excitement from trading ! do it the rite way then it is good for our heart yes ??? better than cardio exercise :) RT ... on days when u feel bored trading, u may join us at below thread for a chat or two. we will be totally delighted with your presence :):)
http://klse.i3investor.com/servlets/forum/900779068.jsp
2014-08-17 17:03
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2014-08-17 01:15