FATA Investing
How can Latitude Tree create more benefit for all shareholders ?
If all the shareholders including the controlling shareholders look at the price chart, they will notice that its share price has been falling from Rm 8.20 to currently Rm 4.85 in the last 12 months.
The 1st quarter report below shows that its earning per share (EPS) was 21.7 sen and its net tangible assets (NTA) was Rm 5.29 per share. Moreover, the company has more than Rm 100 million cash.
Since the company exports almost all its product to USA and in view of our Ringgit is about its historical low, the company will definitely make more and more profit in the next few quarters.
Why should the share be selling at single digit P/E ratio and below its NTA?
I would like the board of directors to consider my proposal to improve the share price to benefit all the shareholders especially the major controlling shareholders.
Every business man has the ambition to list his company in the stock market so that he can sell the shares he has created. Successful listing of the company is like Bank Negara has issued him a license to print money.
So, selling his shares is as important if not more important than selling his product. Of course, he must be wanting to sell his shares at higher prices. The usual way is for the company to make more profit which is the most powerful catalyst to move share price. If the company can make more and more profit, its share price will also continue to go up.
In the case of Latitude Tree, its share price seems to have reached its peak and has been dropping for one year, in spite of the fact that it has strong profit growth prospect and with about Rm 100 million cash in its account.
To break this price down trend I propose the following:
The company split its 1 share into 2 shares to create more shares to improve liquidity for trading.
After the share split, the company issue 1 bonus share for every 4 shares held by shareholders.
After the share split, the company issue 1 bonus convertible warrant for every 4 shares held by shareholders.
I am very sure its share price will go up if the company implements my proposal. All these corporate exercise are allowed by the Securities Commission which benefit all the shareholders without depleting the company’s cash. Giving out free warrants to shareholders is like giving them cash ang pau because they can sell the warrants in the open market.
Moreover, the controlling shareholder can increase his shareholdings by selling some of his shares to buy more warrants. For every 1 share he sells he can buy back 4 warrants.
Source:http://koonyewyin.com/2017/01/03/how-can-latitude-tree-create-more-benefit-for-all-shareholders/
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Be the first to like this. Showing 12 of 12 comments
B4 I finish reading I suspect it's from kyy, sure enuf it's kyy. Yes please suggest to management to split the shares every year until par value is left 0.0000001 cent. Then for sure it will go up every year.
2017-01-07 17:30
ha ha... KYY becoming very funny nowdays... it reminded me of my uncle's behaviour at the early onset of Alzheimer...child like funny behaviours...would easily cheer up and can also get angry easily...
just like a child that does trick to parents and parents would willingly act as if they got tricked...guess now we have to behave the same way...he he
2017-01-07 17:42
Latitude management wants to privatize it, that's the reason there's nothing for minority shareholder
2017-01-07 19:02
read this a few months ago but management do nothing ... what is the purpose of showing it again to i3 readers? i3 readers can give pressure?
2017-01-07 19:38
RAIDER COMMENT; KYY HAD BECOME A MAD DOG LOH....!!
WHY GET THE COMPANY TO HELP U N TO GIVE BONUS ISSUE & FREE WARRANT LEH ?
IF THE BUSINESS IS GOOD, SURELY THE PRICE WILL RISE MAH....!!
WHY U WANT TO MANIPULATE NAIVE AUNTIES AND UNCLES LEH ?
IS IT BCOS OF YOUR GREED OR ARE U IN FINANCIAL TROUBLE, THAT U HAVE NO CHOICE BUT NEED TO MOVE UP THE SHARE TO SELL AH ??
AS USUAL, YOUR ACTION....CONFIRM THAT U R NOTHING BUT A CONMAN LOH...!!
2017-01-07 20:06
Dear i3investor admin,
Can the Admin please reprimand this Author ikwan85 for reposted article from: www.koonyewyin.com category investing in this i3investor Market Blog?
Dear ikwan85,
Can you please show respect to Mr. Koon by not reposted his article on investing from his www.koonyewyin.com. Mr. Koon had promised not to post anymore investing article on i3investor for the very clear reason that he do not want people to miss-understand his intention and start all the silly comments again.
If you insist, why not repost other article: KYY’s 84th Birthday Speech. Category: “LIFE” to give peoples a better understanding on Mr. Koon and his life philosophy.
Thank you.
2017-01-07 20:40
Dear probability,
Please show respect and understanding to your uncle. Please respect our entire elder as we don’t know what they have gone through so that we can have a better life?
Thank you
2017-01-07 20:56
yes Sslee...i always respect the elders. i am also an elderly person already....just a little young at heart.
2017-01-07 23:56
I guess he getting alot of Margin Call lately thats why he so desperate lol
2017-01-07 23:59
Dear probability,
Thank you.
I am now at age of 56, have three children and a loving wife. My elder son had graduated last year and now working as service engineer for an automation company. My second son will graduate in June this year (NUS pharmacy). My daughter just finished her SPM and now still undecided what further study to persuade? I am still working full time in Indonesia and during my spare time I do look into i3investor for SIFU recommendation. (I just know about this website Aug last year. I can only wish I had found this web much early)
I do enjoy reading your comment on plantation as you readily share your vast experience in oil palm industry from upstream all the way to downstream. Thank you.
It is always good to be young at heart and it will be much better if we can also keep a young-full and healthy body. I recommend you to read Mr. KYY 84th birthday speech on how to live on to be 84 and still healthy in mind and body. And if you don’t mind please also read the book: How To win friends and influence people by DALE CARNEGIE. I am reading this book now and I found it very interesting and useful.
Once again many thanks.
2017-01-08 07:13
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