UMWOG closed at RM0.34 date: 25sept

UMWOG-OR will be listed on 26 September

Renounceable rights issue of up to 6,053,600,000 new ordinary shares

UMWOG-OR has 5days lifespan(excluding weekend& public holiday)

Expecting UMWOG-OR price between RM0.005- RM0.02

Subscribe each right share at RM0.30 and entitle 0.25 free warrant

Subscriber will receive new UMWOG + 0.25 free warrant after 2-4weeks expiry of UMWOG-OR

Warrant exercise price RM0.395 with 7 years lifespan

Speculating 1

Buy UMWOG-OR

Sell UMWOG-OR at higher price before expiry     

RISK - Expecting extremely high quantity of floating UMWOG-OR ever, long queue at every price very difficult match the orders

Speculating 2

Buy UMWOG-OR and subscribe to entitle new UMWOG + 0.25 warrant

Sell new UMWOG and warrant stand to profit after listed

RISK – Present UMWOG might facing strong selling pressure before new UMWOG is listed

Investment mid term

Buy UMWOG-OR and subscribe to entitle new UMWOG + 0.25 warrant

Hold Both new UMWOG+0.25 warrant, wait for UMWOG turnaround and follow the Brent oil price.

Reason1 : Expecting turnaround in next few quarters. Turnaround was seen in UMWOG’s close peer in the upstream segment of the oil and gas industry - Bumi Armada.

Reason2 : Upstream o&g industry is highly influenced by Brent oil price, Brent oil price now at 56usd per barrel, expecting will hit above 60usd per barrel.

Sell when reason1 and reason2 no longer valid

Risk- relatively low compare to speculation, set cut loss price

Investment long term

Buy UMWOG-OR and subscribe to entitle new UMWOG +0.25 warrant

Hold Both new UMWOG+0.25 warrant, follow big player

Reason 1: Big Local Fund has increased their stake this year. Amanahraya trustee Berhad  from 8.4% to 31.87% , EPF from 3.22% to 9.58%, Kumpulan Wang Persaraan from 2.46% to 6.7% . more detail on : http://www.bursamalaysia.com/market/listed-companies/company-announcements#/?company=5243&category=all

Reason 2 : Wait for UMWOG turnaround in next few quarters and Brent oil price must stay above 50usd per barrel

Sell when reason 1 and reason 2 no longer valid

Risk- relatively low compare to speculation, set cut loss price

PNB pledges to take up UMW-OG rights shares worth over RM800mil:

Read more at http://www.thestar.com.my/business/business-news/2017/06/10/pnb-pledges-to-take-up-umw-og-rights-shares-worth-over-rm800mil/#YqMGi6WzsO7mSQFw.99

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DISCLAIMER : Investment involve risk, including possible loss of principle and other losses. This article and charts are provided for information only and should not be construed as a solicitation to buy or sell any of the instruments mentioned herein. The author may have positions in soe of these instruments. The author shall not be responsible for any losses or lost profits resulting from investment decisions based on the use of the information contained herein. If investment and other professional advice are required, the services of a licensed professional person should be sought.