ericepuk

ericepuk | Joined since 2019-05-14

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2021-02-25 23:22 | Report Abuse

As stated in proposal of reconstruction, announcement date Dec 2019 and amendment Jan 2021, BIMB needs to buy back all BIMB wa prior to capital reconstruction.
BIMB wa was initated in 2013 with higher price than now. (0.445).
Tabung Haji holding 35% (AR 2013) to latest 27.54% ( AR 2019).
If you check the 10 years Price chart, you will realized, average for Tabung Haji is around 0.8-1.0.
So Tabung Haji (largest shareholder) will use this golden opportunity to sell warrant back to BIMB into as much money as possible, if not they will likely vote AGAINST in CCM later.

What I see here,
There are two types of people comments here.
First type is Retailer Investor who bought at lower price (Before 0.26) and hope to get their warrant sold at higher price in CCM later.
Second type is Shark. Syndicate who bought after 0.26 ( let their average price is 0.30) and hope they can get more warrants before they push up the price even more.

Then how about Newbie who just realized about BIMB-Wa hot stuff which rises more than 10% within this week? Shall you buy this BIMB-wa?
I will take into consideration average price by Tabung Haji (likely 0.8-1.0). since they bought in 2013. In view of they also need money for cashflow, most likely they want a fair price or higher than they average price after holding warrant for 8-9 years already.
So for current price 0.445, i will say it is undervalued as to compare to Tabung Haji average price.
Do you think Tabung Haji the largest shareholder for BIMB and BIMB-Wa will agree with the current price in CCM later?

What is the downside buying BIMB-wa for newbie who just entered?How low can this warrant goes?
As mentioned, it is either 5 days VWAP and not less than 0.26. (company annoucement Jan 2021)
VWAP for today 0.37, that is the floor, however there is no upper limit for this warrant, but i think Tabung Haji will want it to be 0.8-1.0 at least. They need as much money for their limited cashflow.

Is it possible BIMB-WA will drop to 0.305 like last week? (please refer technical chart).
Hardly i will say, Shark, Syndicate, Smart Investors has entered way earlier than you and they have significant amount of shares. The amount of free flow shares is significantly reduced. Imagine this is like diamond rarity in Earth planet, you gotta pay more to buy it.
It is already a fact that Auditorandconsultant gang has accumulate more than 10% or even more during the previous drop. Perhaps Syndicate Shark also accumulate similar significant amount.So to buy the "diamond", how much you willing to pay?

If you have bought BIMB wa before 0.26, shall you sell it?
It depend on your investing decision. Will Tabung Haji agree with the current price 0.445 during CCM later?
If i were you, I will just keep my shares until the CCM. Simple as that.
Btw, dont be so nervous on fluctuation of price, we all know the freeflow for shares is limited, so the downside of price (manipulation by sharks) is limited.

If you have bought too little BIMB-wa, shall you topup?
It depends on your risk management.
this is not a BUY or SELL call.
if i were you, i will take current economic and politic gimmick into consideration.
What is a better risk to take, to invest in volatile stock market with lots uncertainty, including ineffectiviness of COVID vaccines, market collapse, Sudden General Election and etc or this BIMB wa will limited downside ( VWAP - 0.37) which we all know the final price will be decided in CCM this 31 March 2021?.
I left this for your investing decision.

Peace guys.
Goodnight.