Sslee. I disagreed with your generalised statement that good profitable company doesn't need RI. I personally think Dayang is a good, well run company yet they issued RI. Of course, whether they were worth RM3 or not that's another matter. I am surprised you quote the infamous KYY. While i agree he is an influential figure in the investing community, he falls into the category "rich but i don't respect". Come on, his simple primary 6 mathematics to justify AT System future profits? Then all the sudden reminded people that AT has yet to produce a single glove?
He is definitely not stupid but by quoting him, i start to doubt your investment knowledge.

SSlee. I agreed with you RI won't benefit existing share holders due to dilution. The best scenario is not to have RI but bank loan.
Best scenario. Company gets a bank loan for additional income generating business where the return would be higher than the loan interest. However, it needs to be a sure win business. In real life, where can find such business easily?
2nd best scenario. Company RI for additional income generating business. Best la if it's sure profit.
3rd best scenario. Company RI for additional funds into new business but profit or loss yet to determine
4th not so good scenario. Company RI for cash flow caused losing money but management still genuinely wanna make money
Worst case scenario. Company RI for cash flow so that they could syphon more money away via salaries, expenses and loss making ventures. Normally these companies are easily identified in KLSE because they would do RI every alternate years and come up with very ambitious projections that never materialise.
Now, JAKS is which one. You decide. I HOPE it's 2nd best la.
How about Insas, SSLee? Which you reckon?

I am reposting this for the glove investors to ponder.

https://www.thestar.com.my/business/business-news/2020/11/19/recovery-play-gains-strength-on-bursa



Windy1974 Huahtai98. I was trying to make 2 points.
1st. During the Covid 19 in March, most investors are in denial, including me. We always HOPED Covid 19 would go away soon. In fact, during MCO i booked Airbnb in Tokyo for my year end trip. While air fares etc could carry forward, my Tokyo airbnb refused me refund. Now, vaccine is here and people invested in gloves still being optimistics. Very obvious from top articles in i3 forum right? Ya, gloves demand won't disappear overnight, but ASP would normalise? I invested in Top glove too. Honestly, sleepless nights la because of the high valuation. Every time got slight news of vaccine, can't sleep well. I just wanna remind people who invested in gloves not to repeat mistake of investors in traditional counters in March/April.
2nd. Don't overcommit no matter how confident you are. Invest with money you have and you don't need to use


Windy1974 wow. JAKS OR timing is impeccable. Have you read Pfizer's announcement on vaccine effectiveness? During March/April, investors in old economy were in denial. Would the glove holders do the same? Denial it's the start of fall? I wonder whether the so called investment legend has exited glove stocks since lately keep promoting hard? If i chase high on gloves, i will be having sleepless night tonight.
I remembered a young man in JAKS forum claiming that he borrowed heavily to invest in JAKS and it's a failed safe investment. I have learnt early in life the hard way that nothing is failed safe. Just a reminder not to be over confident in anything in life.
09/11/2020 9:28 PM

huahtai98 Dont really get what you are trying to put across...
09/11/2020 10:24 PM
11/11/2020 11:15 AM

This sohai trader is not sohai at all

https://klse.i3investor.com/blogs/sohaitrader/2019-12-18-story249147.jsp

Sslee. Okla, you are getting 2sen dividend a year. Not bad la, better than savings account. At least you are getting more than the 2nd generation rich haha.
Sorry for me to conclude that, this Insas boss same as the MUI boss. Probably better than MUI boss. I won't waste time in such high asset worth companies unless i know their sons gonna poison them haha. Best of luck

How much dividend you collected? Thumbs up for Insas paying dividend and answering your questions. Why Insas raising money when they are so rich? Even if charge the shares to bank already get enough funds right? Let CEO Dato Wong knows, if he doesn't know any bankers, i can intro haha

SSlee. Yes, JAKS could be a value trap. Since you touched on this topic, i would like to comment on your Insas too since i could see that you believe in it a lot? It's not to bash Insas but giving you an objective perspective.
I didn't study Insas in details but i guess the arguement to buy Insas is because the net asset is worth easily RM2 to RM3 vs current share price of less than RM1? Now, that's more than 50% discount and look like a no brainer. However, the share price higheest was only 1.20 in the last 5 years? Now, i had invested in such companies before and would like to share with you my learnt lesson.
Let's give you an example. In my town, there are many 2nd generation rich which liked to brag about their father's fortune. Unfortunately, those riches are NOT theirs, until the father died. Worst, if after father died, mother controls assets.
So, these 2nd generation rich are actually earning a meagre thousands every month and probably wishing their father dead.
I would say Insas would be the same. Why RI when the company so rich?
You were bashing JAKS RI, rightly so. Isn't Insas worst? Yet you are still holding their shares? To me, waste of time.
Well, i HOPED JAKS different. We all hope right...

Sslee Just a curious question what if ALP refuse to give dividend and press down the shares price in order to give himself the free shares grant under LTIP to save on paying income tax. Will JAKS become a value trap?
18/11/2020 8:42 AM

DK. So excess shares allocation on ballot basis? Otherwise, ALP 50m application already fully absorbed all excess.
Thanks for clarifying

You subscribe via OR right? If yes, will be accepted. Only if you subscribe to unsubscribe OR, then that's dependant upon acceptance. However, i don't think anyone are entitled to those as Kenanga and ALP already underwrite those unsubscribe shares. At 0.22 per share, it's a no brainer to underwrite

wcsinvestor How can we know whether part or whole portion of the subscription is being accepted before 26 Nov?
17/11/2020 9:25 AM

i3 lurker. TQ for highlighting the public bank report. Indeed, it still linger in my head why public bank stopped following JAKS. That's also part of the reason i decided to quit JAKS few months back.
I am willing to give JAKS another chance since the Vietnam pp is not an illusion.
However, i reckon it's unfair to call DK a liar. RI etc has nothing to do with DK. If you doubt DK's profit calculation, let's show your calculation otherwise?
Since JAKS forum is really not active, please do everyone a favour by posting your PBB reminder every page instead of spamming it. While my world doesn't revolve around i3, it's getting annoying.
TQ

DK. you have the rights to create a private group. However, my personal opinion is to be transparent and opened. If you do it out of good intention, doesn't matter if noone understands you. You do what you deemed right and not try to be popular.
I salute Jack Ma for his outspoken attitude. Yes, it costed him ANT IPO but so what? As he always said in his speech, how much money you really need?
Of course, i have heard many bosses claimed this but he is the rare one that walk the talk. He has my respect.
I don't respect you because you are loaded but because of your integrity. I have yet to find your blog otherwise but i disagree with creating a private chat room

Huahtai98. I was trying to make 2 points.
1st. During the Covid 19 in March, most investors are in denial, including me. We always HOPED Covid 19 would go away soon. In fact, during MCO i booked Airbnb in Tokyo for my year end trip. While air fares etc could carry forward, my Tokyo airbnb refused me refund. Now, vaccine is here and people invested in gloves still being optimistics. Very obvious from top articles in i3 forum right? Ya, gloves demand won't disappear overnight, but ASP would normalise? I invested in Top glove too. Honestly, sleepless nights la because of the high valuation. Every time got slight news of vaccine, can't sleep well. I just wanna remind people who invested in gloves not to repeat mistake of investors in traditional counters in March/April.
2nd. Don't overcommit no matter how confident you are. Invest with money you have and you don't need to use


Windy1974 wow. JAKS OR timing is impeccable. Have you read Pfizer's announcement on vaccine effectiveness? During March/April, investors in old economy were in denial. Would the glove holders do the same? Denial it's the start of fall? I wonder whether the so called investment legend has exited glove stocks since lately keep promoting hard? If i chase high on gloves, i will be having sleepless night tonight.
I remembered a young man in JAKS forum claiming that he borrowed heavily to invest in JAKS and it's a failed safe investment. I have learnt early in life the hard way that nothing is failed safe. Just a reminder not to be over confident in anything in life.
09/11/2020 9:28 PM

huahtai98 Dont really get what you are trying to put across...
09/11/2020 10:24 PM

Major resistance 0.65-0.66. Once broken, will be testing new high

wow. JAKS OR timing is impeccable. Have you read Pfizer's announcement on vaccine effectiveness? During March/April, investors in old economy were in denial. Would the glove holders do the same? Denial it's the start of fall? I wonder whether the so called investment legend has exited glove stocks since lately keep promoting hard? If i chase high on gloves, i will be having sleepless night tonight.
I remembered a young man in JAKS forum claiming that he borrowed heavily to invest in JAKS and it's a failed safe investment. I have learnt early in life the hard way that nothing is failed safe. Just a reminder not to be over confident in anything in life.

For those who wanna subscribe to OR, make sure to check with your broker on last lodgement date. I received an email 6am this morning informing me that if i didn't subscibe by 2am today my OR considered kaput. Almost had heart attack!!
I used Rakuten because they are cheap but their service during MCO like shit. Having said that, now that i use Maybank, it's actually worse haha.
So, better subscribe early if you wanna do so. If only now asking about OR subscription process, good luck to you.

haha. Musang. I save a lot of money this year with Uncle Lim due to covid 19

Salam. You are right about integrity and transparency. I also agreed that most retailers are not long term investors, which i reckon is sad.
I personally don't know any technical analysts who can consistently perform over a 10 years time frame. If you are 1 of them, you probably are 1 in a million. I am not, so i stick to fundamental. For fundamental, i at least know many who do well out of it. 1 in a 100, at least better odds than 1 in a million.
I am a risk taker when i was young. Forex, futures, you named it, i have touched it. I am lucky to be here because i know i can't risk anymore because i am not only responsible for my own finances, my family too. I can't gamble away my kids education funds.
i still love risk and occasionally goreng stocks too and go casino. But, within my means. Those casino goers who taught me system to beat casino. All of them i never see again in Genting. I wonder why

To me, JAKS only good for 1 thing. Vietnam powerplant. And at 2B shares (excluding WB & WC conversion), it's worth around RM900m at current price.
To me, Vietnam pp needs to earn a consistent income of RM60-70m per year to justify such valuation. If JAKS has a dividend policy eg. 90% payout, then i can settle for current price even with income of RM40m nett (consider FD rate now. Of course, if FD rate up, valuation will go down) So, JAKS seems to be clearing all their unprofitable businesses. i HOPE.
What JAKS income gonna be? Well, it's anyone's guesses. If by DK calculation, no less than RM200m. Which i agreed. It should be a very straight forward business without much surprises. Having said that, management integrity is very important. I still don't know how ALP is and what disappoint me is that, people who knows are not sharing. Typical Asian mentality

Mike. Sorry, i am too lazy to write the whole stories la. I hold JAKS since 2018 but sold all after JAKS RI announcement early this year. However, i still come to JAKS forum thereafter and monitor JAKS progress. So, between March/April till end of Oct, i have no holding in JAKS.

Sarifah. You are spot on there. Either WB would pull back or JAKS would go up. Market forces to decide

Haha John. Obviously i got you pissed by stating you misled others. Since i can't remember what you stated, i have no comments further. If you could reiterate what you mentioned few months back, then i will reconsider whether you indeed misled others or not. Either way, you have the rights to your opinions.
Reasons for me to re enter JAKS.
1. I realise the RI is for additional 10% in pp. Either i was too depressed by the market crash or it's a new info to me.
2. I see JAKS is disposing non profitable business. To me, it's a good direction. I also think that a crooked CEO won't take such action
3. JAKS price is depressed due to bad sentiment and IF the pp profit as projected, then it's definitely a safer investment than chasing high. I have been holding JAKS since 2018, so i will give it another 6 months to prove i am right or wrong.

Sarifah. At 0.262 + 0.22 it will cost me 0.482 per JAKS share + 0.5WC. That's a premium of 5c to JAKS closing price of 0.435 today. So, for me, if WC is listed at more than 10c per WC, then it's better off to buy OR and not JAKS shares. Also, OR volume is bigger than JAKS, so easier for me to accumulate since i don't buy just 10k.
I believe WB and WC exercise price should be similar at 0.49. If so, WC theorectical price should be higher than WB because of the longer expiry period

after exiting JAKS for 6 to 7 months, i have just finished my accumulation of JAKS OR for average 0.262. Made a mistake on opening day queuing at 0.21 without factoring the WC entitlements. Let's hope JAKS pp profit would be as projected

Below link would give you an idea of the formula

http://ir.chartnexus.com/ea/website_HTML/attachments/attachment_0154_170228150811_1333.pdf

tean2020. Since noone answered you, i will. My calculation could be wronged but i think i am pretty much there. It took me 20 minutes to come up with the answer.
With my calculation, the new WB exercise price would be in the range of 0.46-0.47 thereabout.
The new warrants to be issued to WB holders are about 110%. In your case, you would have roughly 21k WB with a new exercise price of 0.46-0.47. So, how much WB is worth really depends on how much premium you THINK WB justified. Of course, market forces should prevailed. If i recalled correctly, when i had WB, it was at a premium of 20%? Now, even at today's closing price, the premium is close to 40%? I could be wrong.
Anyway, if you wanna INVEST and not gamble, you are responsible for your own learning. If i still holding WB, i would have done the calculation right after the RI announcement and not wait till now then ask.

I am not here to scare people. YTLREIT is my major holding for future dividend yield. 2021 and 2022 i am expected 2% yield at current price level 0.72-0.76. Don't mislead people

JJChan. I believe DK write up means JAKS protected from coal price fluctuation. If so, doesn't matter if coal price up or down JAKS profit won't be affected. Ya, indeed Vietnam economy is growing but what should JAKS invest in Vietnam? Glove factory? If everyone got money to invest can make money, then i know many successful 2nd generation tycoon then.
Good investment doesn't come by everyday and if you have invested in JAKS, be thankful JAKS doesn't annouce new investments every year with PP profits.

Warrant holders will be compensated. It's only fair. All warrants will be same. Not just JAKS.

I think you are right, assuming that the profit would be RM200m. I was pretty convinced too till the super CEO mentioned that 50% of JAKS profit will generate from PP? (can't recall his exact %)
Now, i am assuming 90% profit generate from PP minimum. I didn't know that JAKS can make so much money in Malaysia. Either that, or PP will not generate RM200m. I will wait till power generation income to decide.
Buying shares not only because of the prospect but also the integrity of management. Which is as rare as unicorn in Malaysia.
But nvm, Malaysian are gambler. Since Covid 19 can't go Genting, bursa easier :)

PrimarisMarine a rough calculation, but i may be wrong

existing shares = 600mil
rights incoming = 2.4bil

total shares after RI issue = 3bil shares

assuming 200mil profit from power plant per annum
EPS = 200mil/3000mil shares = 6.7c
assume PE = 10x

price of share = 10 x 0.067 = 0.67c = 67c fair value per share

a rough estimate of mine. good luck

All. RM720m is revenue. That's what company generate as sales. Whereas how much would be the net profit, no idea. Someone could do the works and come up with the figure.

DK. Am i reading correctly? RI up to 2 billion shares?

http://www.cneec.com.cn/english/NewsCenter/CNEECNews/201909/t20190930_223783.html

Sold all at 0.24 because that was the previous high before i saw the change in major share holder. Felt i sold too early if it's Regal Orion that take away but then bursa announced new director related to Lambo & Vsolar. Guess it's yet another speculative play. Hence, no regret. I am not discouraging you from speculating since it's your money and your rights. I will be happy if it goes up since i got 100k stuck cos i am applying margin financing

Malaysian BOLEH. There are many sifus in Malaysia now. Especially after facebook was born. I really wonder how Malaysian thinks? If a fund manager managing billions could lose money and yet could come out with intelligent arguements you don't believe, yet you believed in Malaysian sifus who showed off their LV and Prada??
I am a regular in Genting till Covid 19. Many China Doll likes to sit down and teach me how to play Baccarat. The longest winning guess was 10 hands for them. Then they would tell me, c, c, don't listen. I just have to do one thing to shut them up. Lady, give me what you have worth on you and i will give you 50% discount in chips. You win, you take all winnings and give me back my chips. You lose, i take your belongings at 50% worth. That will shut all them up.

o. Btw, i am here because i day traded INIX on friday. I in & out twice, both time 40k shares. Yes, i do speculate too but with less than 5% of my funds in Bursa

Mr Bean. I sympathized your losses. Obviously, you are a retiree. I believe, when this bull market ends, many people would have lost a fortune. Just remember, high risk, high gain. Low risk, low gain. No such thing as low risk, high gain. Bursa Malaysia retail participation has been declining since year 2000. Not since the 90s, there are such retail interests and so many newbie in the market. If you read the star today, you would read many red flags Eg. MOU annoucement by many listed companies.
I understand that TopGlove Datuk Lim would be sharing about his insight into glove demand. While i don't know the future prospect of gloves, i am sure he does, he highlighted an important point. Why buy a new entrant to glove industry if you can buy established glove companies? Top Gloves has a market share of 25% in the world. Well, it's because you are greedy. You want 2000% return. So, most important, do we learn from our mistakes in life? No mattter how much you lose, it's not the end of the world.
I myself was badly burnt, i hope i had paid my fees and learnt my lesson. I hope you do too

AlfI3, if you wanna get con, please come to me. I will at least rebate you 30% of the conned amount

be careful when anyone offer you a yield more than FD and yet claim it low risk. The last time someone told me such investment, i told him i just want 8%, anything extra he takes. On condition that he caveat his assets (properties) for the amount i invested. His balls straight away shrank

i concur that AA won't collapse. However, it doesn't make AA a good buy. If you buy stocks based on fundamental, then you would look at AA's PE. By having right issue, AA shaeholders will face dilution of their potential earnings in future. How much AA is worth really depends on how big the RI gonna be. As for recovery, i was optimistic during the RMCO but no more since Covid cases keep rising even in summer. Ask your friends, are they flying?
Before Covid 19, i take on average more than 100 flights a year. Now? I have 2 upcoming trips in September but now might abort it due to increase in cases. I personally not concern but my family members are. So, i won't be flying. For me, 2020 is gone as far as holiday is concerned. As for work, till now, cistomers don't wanna meet in person, so no point travel. AA would have to suffer for another 5 months minimum

To be fair, if JAKS could make RM200m a year, CEO package of RM2mil is not high

If i can be voted in, i will buy back JAKS shares haha. But corporate raid rarely successful in Malaysia

i volunteer to be the CEO with an annual salary of RM500k and less than RM100k expenses. 90% dividend payout and cease all other operations. Wanna vote me in? :)

30 sens to limit up

DK. Of course. I agree. I bought JAKS at average RM1.60 because of JHDP. Without JHDP, i won't even pay RM0.50 for JAKS. Now, at RM1.60, i was expecting RM5 TP. RI is good if the amount raised would generate better return for future earnings. However, when i paid RM1.60, i was already paying a premium for the future earnings. Now, a slight dilution in 2018 could be forgiven. But with this RI. The potential return is drastically reduced. No more Miss Universe. Hopefully, Miss Malaysia. All the best

cckiong. Sorry, i won't reveal my TP here. I am not here to press down JAKS price. Just wanna highlight facts. My TP will be subjective.

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cckiong Windy1974: what’s your target price to reconsider jaks? I am thinking of 60 cents
21/07/2020 7:56 PM

Sorry, when i said cost me RM6.51m, i was using RM1 cost as example for easy calculation purpose

DK. I reckon your calculation is wrong. You can provide a calculation to prove me wrong otherwise. Let me put it another way.
When i owned JAKS before the latest proposed RI. Consider i own 1% of JAKS shares and would be entitled to 1% of RM250m profit. That's RM2.5m. With 651m shares in JAKS, it would cost me RM6.51m to make RM2.5m a year. Agreed?
Now, with the latest RI annoucement which i didn't read details, the number of shares become double? Triple? Let say double, now 1.32B shares and the RI at RM0.20. I will have to come up with extra RM0.20 x 6.51m shares = RM1.32m extra to own same 1% of JAKS. Now, it will cost me RM7.83m to make RM2.5m a year. Agreed?
FACT: I will need to inject more money to make same amount of money from JAKS. You can only argue that last time 200% potential return, now 150% potential return still good. But fact is, potential return will be less.
After reading ALP interview, 1 additional disturbing fact he highlighted. If you believe what he said, he said 50% of JAKS earning would be generated from JHDP. If he is right, only 2 possible scenarios.
1. JHDP profit RM250m and rest RM250m. JAKS annual profit RM500m
2. JHDP profit would be substantially lower than RM250m based on JAKS property/construction business track record.

---------
DK Windy1974, I m referring to average cost per share. If your cost is RM1.00, your average cost will be lowered to 0.523 per share after right issue. So, while the TP will be diluted, your average cost will be reduced as well.

DK. I understand how you feel. I hold JAKS at average 1.6 and i was looking forward to JHDP to prove myself right. Even when JAKS announced RI in 2018? And my logical brain told me it would drop, but my emotion brain still asked me to hold on. I currently hold no JAKS as the RI announcement for me was the final straw.
I disagree the RI will lower your average cost. Previously, you pay RM1 x 100 for 1 piece of cake. Total cost RM100. Now, assuming you pay half price for the RI + free warrant, no matter how you calculate, it's still gonna cost you more than RM100 for the same piece of cake. It's only good for those who didn't currently hold JAKS shares like me. If JAKS drops to my target price, i might consider give it another chance. Otherwise, i would give it a miss.

------------
DK Windy1974, thank you for your advice but I will stay at least until JHDP releases it results and proven me wrong. It is about believing in yourself. Never give up halfway.

Even though there will be dilution in shares but the Right issue will lower your average cost.

I have advised my group members of my final target price based on warren buffett's owner earnings.

I have yet to decide whether to share the article in this forum since most ppl here will not be interested anyway.

Stocks i bought recently. DRBHICOM because of Proton. GCB because of constant growth in cocoa business. Hibiscus because it has good management and cost conscious employees (from personal experience dealing with them), Muhibah because of their consistent income from airports. Tourists growth is a given in the long run. Yinson. Because it's a safe stock

In life, it's so hard to be objective. We always wanna believe what we hold true to. Irregardless whether it's investment, politic, business or relationship.
If 1 genuinely believes in his investment, he is not a crook to share his views with others unless he did it knowing it's not facts.
DK. As you highlighted previously, you wished people to highlight your wrongs. Assuming the power plant earnings will be RM200 to RM250m as per your projection, valuation of JAKS no longer hold because of the dilution in shares. What would be the new target price and what's the potential gain from current price?
With the Covid 19, i reckon there are many stocks that could gain 50 to 100% once their business earnings back to normal. Personally, i reckon that would be a more predictable results, as the results were proven.
Do consider divest.