@takerisk: Current prices of Focus-PA and Focus-WD offer better choices for capital gain. Buy @1c and sell @1.5c shall translate 50% gain in profit, ideal for small capital players in volume with holding power.

07/05/2021 11:24 AM

BLee: Totally agreed. A million shares of 1sen Focus-PA worth only RM10k. Subscription cost of 5.5sen seens as support level??
Below extract from Focus-PA prospectus for sharing:

"Adjustments to Conversion Price and/or Conversion Mode:

The Conversion Price and/or Conversion Mode may be adjusted at the determination of the Board, in all or any of the following events:-
(i) a bonus issue of Shares by the Company; or
(ii)a capital distribution to the Shareholders made by the Company whether on a reduction of capital or otherwise, but excluding any cancellation of capital which is lost or unrepresented by assets; or
(iii)a rights issue of Shares or convertible securities by the Company; or
(iv)a consolidation of shares, subdivision of shares or reduction of capital; or
(v) any other circumstances deemed necessary by the Board,
provided that any adjustment to the Conversion Price will be rounded,

 Provided that any adjustment to the Conversion Price will be rounded down to the nearest 1 sen (RM0.01). The adjustments shall be adjusted, calculated or determined by the Board in consultation with and certified by an approved adviser or external auditor appointed by the Company, as the case may be."

Meaning, Focus-PA Anti-dilution of any new increase/decrease in mother shares??

 "In the event of liquidation or winding-up of the Company:-
(i) the assets of the Company shall be distributed to the holders of the ICPS in full of the amount which is equal to the issue price for each ICPS in preference over the holders of the Shares, provided that there shall be no further right for the holders of the ICPS to participate in any surplus capital or surplus profits of the Company."

Meaning, lower risk?? Happy Trading

Disclaimer: My comments are for sharing purpose; NOT a Buy, Hold or Sell recommendation

@takerisk, good observation. Happy Trading

Bottom reached yesterday?? Hopefully once only; so far today no 0.5sen traded..managed to get 1sen today to average to less than 1.5sen holding cost. Happy Trading

@investor77 : Where is the logic of conversion at 55 cents when share price is only 12 cents ?

BLee: Asiabio (Fintec) holding cost of Focus-PA after disposed free warrants last year is around 0.27sen (0.27 multiply by 10 still less than 12sen). Below are extract from qr end 2020:
Article B11 - Status of corporate proposals
a) On 2 December 2020, Asiabio Capital Sdn. Bhd. (“ABC”), a wholly-owned subsidiary of Fintec, has subscribed in aggregate 25.05% or 512,099,792 ICPS with 768,149,688 free detachable Warrants D of Focus Dynamics Group Berhad("the free detachable Warrants") for an aggregate sum of RM28.16 million in cash via the Rights Issue of ICPS with Warrants of Focus at an issue price of RM0.055 per ICPS. On 21 December 2020, ABC had disposed the free detachable Warrants for an aggregate sum of RM26.74 million in cash through open market."

It seems that the holding cost of 512million Focus-PA for Fintec only around RM1.4million.

Investor77: Why did Fintec buy so much at a high price ?

BLee: I can't answer this question logically..only reason could be cost averaging at high to low range (aggregate purchase cost of around 34sen since early April?).


For all the other good questions; it is beyond my knowledge to give a good answer.

Happy Trading

@lehubeng, 5.5sen per ICPS is the subscription price paid by subscriber during ICPS rights issue with free warrants as sweetener (like dividend or interest for FD). Upon conversion, just surrender equivalent value of this Focus-PA (2 methods with minimum of 1 ICPS of value 5.5sen collected during initial subscription or multiple of ICPS plus cash) to make-up 55sen. Due to this complicated conversion calculation, I think many investor not keen to look at ICPS..just sharing info. Happy Trading

I intended to invest more on Focus-PA, and done some reading on Fintec and Focus latest quarter reports. The following quote seems partly support my "cerita dongeng".

"Article B11 - Status of corporate proposals
a) On 2 December 2020, Asiabio Capital Sdn. Bhd. (“ABC”), a wholly-owned subsidiary of Fintec, has subscribed in aggregate 25.05% or 512,099,792 ICPS with 768,149,688 free detachable Warrants D of Focus Dynamics Group Berhad("the free detachable Warrants") for an aggregate sum of RM28.16 million in cash via the Rights Issue of ICPS with Warrants of Focus at an issue price of RM0.055 per ICPS. On 21 December 2020, ABC had disposed the free detachable Warrants for an aggregate sum of RM26.74 million in cash through open market."

It seems that the holding cost of 512million Focus-PA for Fintec only around RM1.4million.

Happy Trading

Disclaimer: This is NOT a Buy, Hold or Sell recommendation; just for sharing purpose.

@jlex11, yes..I have missed the boat on ARBB-PA. I bought AGES-PA (same boss with ARBB-PA) during uptrend last year, thinking awarded many projects comparing with ARBB-PA. As I have highlighted in one of my articles, most counters that issued ICPS are penny stocks, the holding period could be long and risky..Happy Trading

@jlex11, noted. I have blogged on Feb. 6 on differences between PS and Warrants; link as shown (for sharing purposes, not so much for self promotion)
https://klse.i3investor.com/blogs/BLee_AGES/2021-02-06-story-h1540336582-Warrants_and_Preference_Shares.jsp
I believed the conversion of PS is quite complicated due to 2 methods of conversion as observed from some of the queries in i3 and also on maturity (PS) vs expiry (warrants). Happy Trading

@jlex11, a very good detailed info. I am very much into ICPS of few counters, and believed the much lower risk of holding Focus-PA due to much lower entry cost comparing with initial subscription cost of 5.5sen. I believed the $ is still very much intact as in recent disclosure by Fintec as quoted "The funds arising from these exercises are at all times secured and placed with licensed and regulated financial institutions" applied for Focus-PA. Happy Trading

@investor2021trading, 1 ICPS is worth 5.5sen upon conversion no matter how much you buy. To convert or not, up to individual. Happy Trading

@investor2021trading, please refer link for conversion details:
https://www.klsescreener.com/v2/announcements/view/3272031
"maximum of 10 ICPS for every 1 new Share" means 10 of 5.5sen equal 55sen for 1 new share, no extra payment required. Happy Trading

@newbie5354_, it is 3W for every 2 ICPS subscribed. "FREE DETACHABLE WARRANTS IN FOCUS (''WARRANTS D'') ON THE BASIS OF 2 ICPS TOGETHER WITH 3 FREE WARRANTS D".
Hypothetically (cerita dongeng), if subscriber sold warrants D at first day of trading at 7.5sen (figure from graph and 52w high), Focus-PA holding cost free with handsome profit. So it is not a bad idea to subscibe some of this RI. Happy Trading

@Not_logic, don't forget the free 'sweetener' warrants given with the subscription? Also, the 'herd' mentality of 'negative' news? I really don't have the answer why selling when mathematical still profitable? I believed the subscription $ still not spend yet on the intended purpose; so Focus-PA still secure? Happy Trading

@persie, the original subscriber already paid 5.5sen (base value, take it as loan stock with a fixed value), hoping to gain a profit from this ICPS issuance. Somehow, you managed to purchase lower than the issuance price. Based on the conversion ratio of 1:10 to make up 55sen i.e. 5.5sen x 10 ICPS or minimum 1 ICPS (value at 5.5sen) plus cash to make up 55sen, you can convert to mother share. If by the time (8 working days needed for conversion) mother price still above your contributed equivalent investment, you can sell with a profit. Happy Trading

@persie, all details of Focus-PA are in the prospectus, link https://www.klsescreener.com/v2/announcements/view/3256163
Ans: 10 Focus-PA can be converted into 1 mother share without extra payment. Each Focus-PA worth 5.5sen during conversion regardless how much you pay during purchase in open market. Will auto convert upon maturity. Happy Trading

@Zamrijin, please check on Focus-PA (ICPS) term and condition for conversion if any changes on the mother shares increase (new issue) or decrease (consolidation) in number of shares? If I am not mistaken, conversion ratio will change accordingly based on issue price of 5.5sen (base cost). A very good example of this changes happen when Fintec-PA (issue price of 8sen) changed from 1PA 8sen to 1PA 3sen upon increase quantity of warrants. Please correct me if I am wrong, as I presume I am buying at a lower cost for this 5.5sen Focus-PA. Happy Trading

LOL, only warrants will expired to zero value. ICPS will mature on set date i.e. auto convert to mother share. If liquidated, preference share will be paid in priority over mother shares holder, i.e. lower risk. For info, I have taken the risk to get in 2.5 sen on Thursday and 2 sen on Friday. Average price now 2.25sen. Happy Trading

2.5sen tickets all gone for now..Happy Trading

@Johntee, I think it is April Fool offer (price drop around 1st April) with limited period until price balance out. Grab it if you dare? Happy Trading

@Pee Wee, PLC for business stand for Private Limited Company? But for Electronic/Technocrat Engineers shall mean Programmable Logic Controller? Experience Engineers with proper business exposure shall make a good business man. Engineers are usually trained to be very analytical with logic, and in real world to be more cost conscious. Only my 2 sen..Happy trading

Two (2) high buying wave within half hour..still look c look c. Happy Trading

High buying volume just happen..look c look c. Happy Trading

@Flybythenite, I think you got me wrong. I am talking at present price without knowing when borders open, price will be a bit depressed. Once borders open, we are not talking support at the region of 30sen or 40sen..Of course I will think about selling in the region of more than 300% of my cost price of 15.5sen..Anyway, I took back my principle investment during speculative period, left 30% investment as all profit. Iris huat..Happy Trading

@Flybythenite, good comments on "some earned 300% still keep"; I will wait until borders open then think about throwing. Some speculative counters, I will throw even for 1 or 2 ticks..Happy Trading

I think with so many Rights Issue, I volunteered to decode some of this jargon.

Proposed Rights Issue of ICULS : Proposed renounceable rights issue of up to 30,677,176,092 10-year zero coupon ICULS to raise the Maximum Gross Proceed.

Renounceable: Renounceable right offering rewards shareholders, compensating them for the share dilution that's associated with a new issuance. A renounceable right allows each share to maintain a proportional ownership stake in the business but also allows shareholders to receive cash from the sale of the right if so preferred.

Rights Issue: An issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

ICULS: Up to 30,677,176,092 10-year zero coupon Irredeemable Convertible Unsecured Loan Stocks of Ageson to be issued pursuant to the Proposed Rights Issue of ICULS.

Irredeemable: These Convertible Unsecured Loan Stock do not have any incorporated clause with respect to their redemption and thus cannot be bought back at the choice of the issuing company.

I am not so sure on the adjustment of ICPS AGES-PA exercise price; please advise.

Please correct me if I have made some wrong interpretation.

Happy Trading

@RJ87, just notice typo error you as @RJ89, my apology. I am back from my banana lunch and ready for more 'blow water', please bear with me.

There is a blog comparing MFCB hydro power with coal power generating Electricity. I have some knowledge on power generation and interested to do more deep research; defended MFCB. With technology advancement and cost efficiency, hydro power is considered more efficient at the moment; so coal power generation might lose out. In the near future, hydro power might lose out to wind farm power generation or other power generation technology. China, Vietnam, Europe and all over the world are building more wind farm power generation plant.

So the the no.1 criteria for stock investment could be technology advancement. We can see how Nokia and Kodak slack behind Samsung (mobile phone technology with good digital camera).

Happy Trading

@RJ87, haha. Most of us believed we were once brothers of monkey but without the tail..late for my banana lunch. Happy Trading

@pjseow & RJ89, this monkey (BLee) has been a very loyal supporter of MFCB. As of today, my profit margin is more than 100% as shown below. Each and every investor has their priority of investment criteria. We are here to learn and share experience; no intention to offence anyone. I believed as long as we have holding power; stock with good cash flow, good technology advantage, good dividend policy, etc will prevail one day.

Code Name Currency Last Change Avg. Price
3069 MFCB MYR 7.5100 -0.13 3.5900

Happy Trading

@RJ87, explaining well, especially on reduction of share price after ex-dividend. A lot of people did not notice the drop, me inclusive, as most of the time recover pretty quick.
I think you miss out one important point; prestige. I might be wrong, most long term investors look at dividend yield (DY) as one of criteria for stock selection. They always compare DY with respect to FD interest rate as the bench mark. When MFCB at around RM3 paying more than 6%; will be a counter to invest in. This 6% around present price will be around DY of 0.8; will not be so attractive..just my opinion, I personally do not really look at DY for stock selection; as long as the company present a healthy balance sheet.

Happy Trading

@icst1975, very good questions raised. I am also suprised with this new ICULS and would like to know the answer to some of your questions. The money raised during the ICPS is not so high as you have suggested due to item (ii) indicated below.

"ii. Issuance of 750,000,000 ICPS to Daya Intelek Usahasama Sdn Bhd for the acquisition by Prinsiptek Properties Sdn Bhd, a wholly-owned subsidiary company of Ageson, of a parcel of development land measuring 7,395 square metres identified as Lot No. PT 129 held under Title No. H.S.(D) 18991, Section 1, Town of Batu Ferringi, District of Timor Laut, Pulau Pinang for a purchase consideration of RM57.00 million to be satisfied via combination of RM49.50 million in cash and RM7.50 million in issuance and allotment of 750,000,000 ICPS at an issue price of RM0.01 per ICPS"

icst1975: 1) In the last 12 months, they issued 4611m PA at 1 cent per PA which is worth about RM46m

BLee: Based on item (ii), this RM46m will not able to cover.

Upon ICPS conversion, the actual cash received multiply by 12 (assume method 2), as ICPS $ already accounted in the initial subscription.

Happy Trading..running late for my slumber.

@Ken: What is the point subscribe iculs?No interest will be given,some more this is unsecure loan.You will feel unsecure when you hold this kind of loan stock

28/02/2021 11:00 AM

BLee: @Ken, you are correct if strictly for L(oan) S(tock). The trick is in C(onvertible); where investors are subscribing to the future stock price of AGES with very minimum cost. This is the same trick they use for ICPS (AGES-PA); which has increased their share capital tremendously.

The question will be dilution on existing AGES shares. As long as the convertible does not exercise, the dilution will not happen. The dilution happens only upon capital injection/exercise of ICPS or ICULS.

Pro: The company will have interest free loans to execute new projects.
The investors will have a new instrument for trading at a very minimum cost.

Con: The company will have extra risk of business development if new projects are not successful.
The investors face existing shares dilution upon conversion of ICPS/ICULS.

I just list out one or two obvious pro and con; maybe some others investors can contribute more.

Happy Trading

@IAN1277, I have gone through the proposal document, IMHO there will be before and after issuance effects.

Before: There will be more AGES-PA conversion to mother shares to capture the rights to subscribe. The share price will not be so much affected.

After: Unless AGES-PA exercise price reduces to match ICULS exercise price, AGES-PA will play second fiddle to ICULS. Typical examples will be those counters having A, B and C warrants; the more recent warrant usually will have more attention.

Due to the major increase in issuance size, it is very hard for shares price movement. Any increase in shares quantity will spread out the funds available.

On another note, the proposal is well written with all the scenarios covered. So far, I liked Agesion reporting on their corporate movement. I hope their projects will be successful amid increasing risk..

Happy Trading

Disclaimer: This opinion for sharing purpose; not meant for buy, sell or hold recommendation.

@soulless, I am talking the other way, ICULS most likely conversion at 10sen vs AGES-PA of 13sen at present. The support of AGES most likely will be around 10sen after ICULS issuance. Maybe can get some profit from ICULS during listing as the issue price most likely at 1sen. If all the proposed projects succesful, it will be another story.
Happy Trading.

Disclaimer: This comment NOT a buy, sell or hold recommendation.

@soulless, good explanation. The only different between ICPS and ICULS is ICPS more secure comparing with ICU(unsecure)LS. Anything happen, ICPS will get priority to be paid. It will be 'game changer' for AGES-PA due to new 'competitor', maybe with lower conversion ratio. Happy Trading.

With today announcement of Proposed ICULS, it will be a 'new ball game' for AGES-PA. The Proposed conversion of '10sen' vs AGES-PA of 13sen (unless revised as seen in Fintec-PA from 16sen to 11sen); it will be a disadvantage for AGES-PA. Let's wait and see what will happen. Happy Trading.

@sting79, the address update around the same time bcos having same registrar.
Below is Ageson office address I obtain from Google search.

Ageson Office Address:
83 & 85 Jalan SS15/4C Subang Jaya, 47500 Malaysia
Tel: 03-56292600

Happy Trading

@sting79, thanks for highlighting. At present I am holding very little on AGES and AGES-PA, managed to unload some on Monday. I am waiting to go in again..Happy Trading
Note: I have been monitoring AGES-PA and ARBB-PA trading pattern; and try to capitalize on any value advantages for trading ICPS.

@Harley Dav, why you need to call them? Their new number (announced at klse screener) at:

New address
Level 5, Block B,
Dataran PHB, Saujana Resort,
Section U2,
40150  Shah Alam
Selangor
Malaysia
Telephone No: 03 -78900638
Facsimile No: 03 -78901032
E-mail address: boardroom@boardroom.com.my
Effective date: 27 Jan 2021

If cannot get, maybe 'scam' and 'shit' counter? Happy Trading

Throwing at 14sen well absorbed by buyers, chances of moving higher increase..Disclaimer: Not a buy, hold or sell recommendation. Happy Trading

At 95% buying up now, keep our fingers crossed for moving up until coming QR..Happy Trading

@sting79, ICPS subscription $ and authorized capital 2 different thing. I am not sure on ICPS $ as I thought same as loan stock. But in AR, shown as equity..maybe some knowledge person can explain. My field is Engineering, not accounting. Happy Trading

@sting79, yes on 2 method. Which ever method also result into increase in capital. That why I use minimum of ICPS conversion to cover both method..Happy Trading.

@Philan008, thanks for sharing. If border open and still no sand/silica trading business; and no construction/development in Perak/Kedah/Penang, then most probably a 'scam'. Otherwise, look c look c for the next few QR.

For info, as of 2nd Jan. 2021, min. 580,211,216 ICPS converted to mother share bringing in RM75,427,458 new capital to the company. If it is a 'scam', who will invest this RM75.4 million? Happy Trading

@icst1975, thanks for sharing. IMHO, 1MDB case cannot be used as a case study for AGES as Prinsiptek Corp Berhad then and AGES now under different mgmt; usually new mgmt will think 'out of the box' to revitalize the business. I will not deliberate what the new mgmt has done as I am not privy to what concurred; I will wait for the results of their sand trading business (delayed due to pandemic?) and construction/development businesses in few states...Happy Trading

@samzaham, needs positive to be happy. This round, I even managed to get 12.5sen, already in paper gain..Happy Happy Trading.

@samzaham, tq for sharing. I also spotted when near to QR reporting, there will be a push and thereafter will come down again to 13sen support. Usually I buy few hundred k at 13sen before QR; and sell after the push. Few days ago, there are very high volume buying at 13sen, suspect same principle apply...Happy Trading

@icst1975, the present mgmt is a new team, will change anything to progress. I will give them a chance; will invest other counters if this new mgmt did not perform. We shall not 'loyal' to any counters as no obligation to stick with them; just run if make enough profit. I sported this 'rubbish' counter with strong support at 13sen bcos of ICPS maturing at 13sen; therefore I try my ICPS theories on value assessing..Happy Trading

@icst1975, please read below link to debunk the mention blog:
https://klse.i3investor.com/m/blog/anonymousdefame/2020-09-02-story-h1513283650-My_reply_to_people_trying_to_defame_this_good_fundamental_company.jsp

There is always two sides of the coin, maybe you have more details to share..Happy Trading

Yesterday mother big buying volume (>150k x 100), today daughter turn (>590k x 100). Something brewing. In Kali lah. Happy Trading.

Big buy volume just started. Ini kali lah. Happy Trading