A company needs to reach a certain size and mar cap to be able to secure bigger projects and cheaper loan. Karim is a man in a hurry, it can be good and can be bad. If he is right, then you stand to earn alot, if he is wrong and rush too fast, then die together. At least he has a dream to grow the company, some CEO and owner dont want risk and rather play safe and just enjoy their wealth, like YTL.

Everybody chill man, nobody knows where it will go, but confirm wont gap down like anson says. If gap down, I will all in. Anson is wrong to compare SCIB PP to Serba PP, a portion of Serba PP is used to service the debt, which is bad. SCIB PP on the other hand is to secure more projects. AirAsia PP is to 100% pay off debt and obligation, which is the worse.

So, dont worry, as long as they can secure more projects, this is ok. Look at Grab, Anthony Tan accepted so much funds to the point he only holds 2.2% of Grab, not sure if he has other vehicle that owns Grab indirectly, but share dillusion during growing stage is normal, look at Yinson, RI and PP few times.

Karim's goal is to grow SCIB and KPower big and fast. if want slow and steady win the race type, maybe go for Public Bank or Maybank.

I never understood why people think PP is bad. Just like debt, there are good debt and bad debt, it is how you use the PP. As shown in the proposal, majority of the money acquired via the PP will be used to grow the company. If it is used to pay down debt like AirAsia, then run for your life.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=114392&name=EA_GA_ATTACHMENTS

What is good PP and bad PP? a bad PP is the one launched by Tony and gang in 2016 / 2017, the reason is to increase their holdings and right after the PP is done, they go on selling most of their airplanes and give it out and dividends. That is a bad PP. This SCIB PP / KPower PP are good PP (Good Debt in property investment term). HumblePie188 explained it best:

https://klse.i3investor.com/blogs/humblepie188/2016-01-14-story89814-Private_Placement_Good_or_Bad.jsp

As mentioned by humblepie, "During the PP exercise, the share price will be maintained above the PVWAP. Why? If the mother price is trading below PP price, why would you want to pay RM500k per block to subscribe? Just buy from open market will do since it is cheaper. How about post Private Placement. That one I can't comment much. You read back and you will get the answer."

No reason for price to drop, the more it drops the less money the company gets to collect. The goal is to get as much as possible to fund the expansion plan. Therefore the likelihood of it going up is higher than down.

p.s. Everybody saw this coming and have been talking about this since January 2021. Those that wanted to sell would have sold earlier and waiting for this PP announcement to come back in, that is if they are still interested in SCIB / KPower.

I do not see any major fundamental changes in the company, management still performing, no crazy new ventures like gloves or losing money.

I never understood why people think PP is bad. Just like debt, there are good debt and bad debt, it is how you use the PP. As shown in the proposal, majority of the money acquired via the PP will be used to grow the company. If it is used to pay down debt like AirAsia, then run for your life.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=114392&name=EA_GA_ATTACHMENTS

What is good PP and bad PP? a bad PP is the one launched by Tony and gang in 2016 / 2017, the reason is to increase their holdings and right after the PP is done, they go on selling most of their airplanes and give it out and dividends. That is a bad PP. This SCIB PP / KPower PP are good PP (Good Debt in property investment term). HumblePie188 explained it best:

https://klse.i3investor.com/blogs/humblepie188/2016-01-14-story89814-Private_Placement_Good_or_Bad.jsp

As mentioned by humblepie, "During the PP exercise, the share price will be maintained above the PVWAP. Why? If the mother price is trading below PP price, why would you want to pay RM500k per block to subscribe? Just buy from open market will do since it is cheaper. How about post Private Placement. That one I can't comment much. You read back and you will get the answer."

No reason for price to drop, the more it drops the less money the company gets to collect. The goal is to get as much as possible to fund the expansion plan. Therefore the likelihood of it going up is higher than down.

p.s. Everybody saw this coming and have been talking about this since January 2021. Those that wanted to sell would have sold earlier and waiting for this PP announcement to come back in, that is if they are still interested in SCIB / KPower.

I do not see any major fundamental changes in the company, management still performing, no crazy new ventures like gloves or losing money.

“The RM7.7 billion worth of Abu Dhabi innovation hub project is currently at the engineering and design stage and construction work should commence in 2H21 [second half of 2021]. Piling work for the RM1.5 billion data centre project has started in April and construction work should accelerate in 2H21 as well.


https://www.theedgemarkets.com/article/serba-dinamiks-steady-trajectory-likely-continue-driven-strong-orderbook-replenishments-ict

“The RM7.7 billion worth of Abu Dhabi innovation hub project is currently at the engineering and design stage and construction work should commence in 2H21 [second half of 2021]. Piling work for the RM1.5 billion data centre project has started in April and construction work should accelerate in 2H21 as well.


https://www.theedgemarkets.com/article/serba-dinamiks-steady-trajectory-likely-continue-driven-strong-orderbook-replenishments-ict

Sorry, not 'Shooting Star' formation, it is 'Bearish Engulfing' candlestick pattern. Friday and following week down.... then up again, then down, then up...

Shooting star appear, on the way down again. up down up down up down..... I think this time down to 0.75

PP coming. Just like debt, got good debt and bad debt.

Good PP = Raise funds to secure projects and grow (KPower)
Bad PP = Raise funds to pay debt (AirAsia)

https://www.thestar.com.my/business/business-news/2021/04/28/potential-fund-raising-exercise-for-kpower-to-finance-lss4

Nothing to worry, this is just like bank loan, use credit card (bad debt) to buy things you dont need or borrow from bank to buy a house (good debt).

For some unknown reason, GKent is not mentioned... even Suncon was mentioned in the article. Looks like MRTCorp really dislike GKent?

https://www.theedgemarkets.com/article/construction-players-seek-score-mrt3-under-new-financing-model

@luckypunting

Karim style is like this one.... dividend play. Look at Serba and you'll know what is his style.

Sell to whom? If sell to epf or kwap or some big institution, consider good or bad news? They already said it wont affect the stock price, thus it is probably a direct transaction? Who are they selling it to?

@AnsonLiew

Maybe bad news for you? For those in the dark, the new management is solving the problem left behind by previous management. They have to clean up the mess in order to attract institutional investors like EPF or KWAP to invest in SCIB. For now, these big institutions have yet to invest in SCIB or KPower.

This exercise will be completed by the end of this year, they are probably aiming for institutional fund in 2022.

@karimgood

Did you even read the file? It explains everything, or your english not good enough? They are cleaning up the mess caused by previous management, and also this is a good move moving forward for the company.

Capital reduction is the process of decreasing a company's shareholder equity through share cancellations and share repurchases, also known as share buybacks.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=114186&name=EA_GA_ATTACHMENTS

@LM7081

Price started flying on Jan, what changed? Nothing, suddenly spike in profit and secure new projects? No. Insider already knows got bonus and free warrant, so they all rush to buy, and now as bonus gets nearer and nearer, they throw and take profit. Tomorrow throw again, then get free warrant throw again. Just saying, am not here to trash Frontken, just saying what I am observing.

@fachoi

Yeah, problem is they plan to open more about 70 myNEWS stores and 30 CU stores for 2021. 1 is not making money, another 1 can make money and is very popular. Why waste money on opening 70 myNews store when it can be 100 new CU stores instead of 30?

https://www.theedgemarkets.com/article/mynews-targets-open-100-stores-year-sets-aside-rm50m-capex

Nobody in this forum will say this 70-30 is a good move. and Everybody will say they should focus on CU only.

This goes to show Management is bad. Unless a very good reason is given, I dont know why they continue to open myNEWs when demand is not there, the millions are better spend opening up more CU stores. Can someone explain this to me? Maybe I am not smart. I really want to have a different opinion on this 70-30 strategy.

I am willing to bet the next few quarters they will report losses or very little profit.

I am willing to be this won't be the last RI and PP, more RI and PP coming. Then even more bank loans.... that is if any banks are willing to loan them. When everything is done and covid is over, all profit made will go to servicing the debt.

They call this Zombie companies.

And someone will come up with a new budget airline, and because this new budget airline does not have the baggage like MAS or AirAsia, they can afford to sell tickets at lower cost, thus, AA will continue to bleed until it goes bankrupt.

@Penguin88

Yes, that is exactly what is going on. This is not pasar malam business, can open, close, scale up or down easily. These machines also takes time to build and delivered from Netherlands to Taiwan, then need to fine tune and do test before full production.

The whole argument on chip shortage is like saying a car washing company will make good profit because there is a shortage of chips and cars. A car washing company will only make good profit when there are more cars on the road, for now, there is a bottleneck in production for chips.

Dont get me wrong, I like Frontken, good company. But valuation is too rich for now. Buy and hold for long term is a good move... that is if you already bought it few years ago.

Amazon buy myNews? So desperate to push the price up? I heard Apple plans to buy TopGlove.

I never understood the logic of how chip shortages contributes to the rise of Frontken price, as if Frontken profit will increase because of chip shortages, isn't it the other way around? They could have serviced more machines but now can't because there is a bottleneck?

It made more sense if there is a spike in chip demand + chip production, this means they have more jobs. Now, they have either slightly more jobs or more or less the same number of jobs but with slightly higher pay.

Just like gold, if gold price goes up, I dont think goldsmith will sell many jewellery, which doesn't make sense when Poh Kong's stock price went up when gold price went up. Just like Frontken, it should be the opposite, if gold price drop, you will see many people flock to goldsmith shop.

Is Frontken expensive? Time will tell. Happy investing.

KWAP has been buying and selling, I own SKP too, I dont think it is worth mentioning. EPF on the other hand is news, they are now a substantial shareholder.

Do you even look at the date before commenting? They bought at 20th, not today.

invest got lah, trade... too slow for trading

wah, this kind of stocks also got people trade?

my observation says after bonus almost all stock price will go down temporary, the only one that went up after a few days is Greatec. I am expecting the same for SKP too. Down for a few weeks only go back up. but now that EPF is collecting, it is hard to say.

PE so high, still can invest in Frontken?

EPF finally comes in big, 5%. Means long term got future. with countries moving their production out of china by diversifying, all EMS in Malaysia got chance. Hopefully one day enter KLCI30. China can't be the factory of the world forever, and sadly I dont see us moving up also, this probably means we are doomed to be factory for others, and sell palm oil and commodities related stuff... middle income trap.

https://www.malaymail.com/news/singapore/2021/04/14/dyson-to-hire-another-250-engineers-scientists-in-singapore-as-part-of-glob/1966299

More new products, EMS will benefit from this move.

Someone will come up with a new airline that can provide cheaper fares compared to AA, the reason is this new Airline will not have huge debt like AA. Will this new airline succeed? nobody knows, depends. But if run well, it is impossible for AA to compete due to AA's large gigantic big debts.

Someone mentioned earlier the possibility of GKent supplying gloves to Honeywell. Well, I guess it wont be happening soon. Not surprised, GKent dont have FDA approval also. Maybe after 2023 or 2025. Can only sell spot price when all gloves companies are at war to grab market share. Pray for a super virus to appear in 2025.

https://www.theedgemarkets.com/article/aspen-bags-us210m-agreement-supply-gloves-honeywell

Can we still invest in TopGlove? What is the TP Price?

I think GKent needs a new CEO, just like Berjaya. Gkent got money, can easily go into many new venture. I dont even mind if they go into Water Filter business, make it a subscription based model for outdoor water filter system for whole house with smart monitoring system, once filter too dirty or reduced water pressure detected, GKent comes and service or replace filter. Go do something, new venture to grow.... but no, go do glove. oh boy, what do I know, am just a keyboard warrior. maybe glove is the future.

took QL 3 years to breakeven with FamilyMart, that is with the support of their other subsidiaries via cheaper food purchase and data. myNEWS also has the data, all they need is to scale things up. I think it will take a few years too, wont be surprised if it takes 3 years also.

The different is QL is profitable before FamilyMart, whereas myNEWS is struggling. CU will be an extra burden and will drain their resources. But if executed well, I think CU can make it. myNEWS needs to focus on CU and stop expanding myNEWS. or convert myNEWS into a minimart. They can have both cakes and eat it. They have to choose. If not, it becomes like Proton, selling so many varieties of cars of the same categories.

I see great potential, buy and hold for 3 years.

Bonus and Warrant outcome, both passed. Date to be announced soon.

https://klse.i3investor.com/meeting/7155/22-Mar-2021/10944_114774866.jsp

Bonus + Free Warrant + Growing Earnings + Good TP by IB (RM3) + Dyson Expanding

So, is Eddie Ong a good person? good management?

When is RI? Thanks

What is drp?

Good news but stock price cannot fly. same goes with Gamuda with 2 good news, big Penang Island project and MRT3, somemore drop. MMCCorp also. This means investors are afraid, maybe they fear the repeat of the GE14 aftermath. The close GE is, the more sideways all of these construction companies will go.

Is AirAsia worth investing? Can I refinance my house and all in with margin? just asking.

I see, found the answer, thanks for informing me, learn something new

https://klse.i3investor.com/m/blog/humblepie188/2016-01-14-story89814-Private_Placement_Good_or_Bad.jsp

How does that work? Won't they pay more for the same amount of shares?

I think there is a reason why Karim sold almost all of his KPower WA but not SCIB WB. Most probably no more PP for KPower but he kept most of his SCIB is to push down the SCIB price when PP is about to announce, I might be wrong. just my observation.

I think there is a reason why Karim sold almost all of his KPower WA but not SCIB WB. Most probably no more PP for KPower but he kept most of his SCIB is to push down the SCIB price when PP is about to announce, I might be wrong. just my observation.

Do you guys know when to buy AA? When you see Tony Fernandez and his gang starts buying via PP. That is the sign you need. Tony is a snake. For now, AA got no hope. Tony will use any method to save AA and then when the coast is clear, he will PP AA to kingdom come. Check history.

Every time 1 to 3 weeks after PP is announced the price went even higher. Same goes with AA and many other companies. As long as the PP is used to grow the company earnings, no big deal. Just average down when it goes down, that's all. No need to argue with Anson or anyone. Let it be.

Chill bro. Everything will be OK.

Bonus + Free Warrant + Growing Earnings + Good TP by IB (RM3) + Dyson Expanding

https://www.reuters.com/article/dyson-investment/dyson-to-invest-37-billion-to-double-product-range-by-2025-idUSL8N2IC4XA

What have you got to lose? Up Up and away to RM3

Hengyuan PE7 only? Can go to PE14 or not?

Karim's subscribe to Serba's PP, 10% of RM5B is RM500m and he subscribed 10% of the RM500m. He needs RM50m. KPower's warrant he owns about 50million, if average price he sold is 60 cents, this means he earns RM30 million.

He will sell SCIB's warrant too, to pay off the Serba's PP he subscribed to. It is just business. Serba is his baby, he will always support Serba.

KPower and SCIB quarter report is next week. If it is good, the price will rally. If you are a long term holder, just hold. If you bought high, sorry to hear this.

Karim's subscribe to Serba's PP, 10% of RM5B is RM500m and he subscribed 10% of the RM500m. He needs RM50m. KPower's warrant he owns about 50million, if average price he sold is 60 cents, this means he earns RM30 million.

He will sell SCIB's warrant too, to pay off the Serba's PP he subscribed to. It is just business. Serba is his baby, he will always support Serba.

KPower and SCIB quarter report is next week. If it is good, the price will rally. If you are a long term holder, just hold. If you bought high, sorry to hear this.