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2012-10-25 10:09 | Report Abuse
JOHOTIN-OR trades today at 0.62, strike price 1.28. Cost of acquisition: 0.62+1.28 = 1.9
seems that JOHOTIN is considered cheap now if you look at the illustration above as the rights pricing indicate that JOHOTIN is worth at least 1.9. Upside of ~17% based on current price of 1.62
Stock
2012-10-23 22:46 | Report Abuse
warrant ex-price is fixed at 2.28
Stock
2012-10-23 10:14 | Report Abuse
MFLOUR's rights issue is used to pare down heavy debt (gearing ratio 0.82 before rights). JOHOTIN have much lower gearing ratio (0.44) plus net cash position by end of FY2012. This rights issue is mainly being used to fund land acquisition and factory construction. From the rights, 5mil is used to acquire 4 acres of land at Telok Panglima Garang(cost of acquistion ~RM28.70 per sq ft - I think this price is reasonable), and 10mil used for factory construction.
That being said, there will always be risk in any investment. The new plant is only expected to be operational in the next 18 months and any profits arising from it will probably be reflected on 2014's report. But I think it will be good opportunity to accumulate some for some exposure when it is undervalued.
Stock
2012-10-18 10:11 | Report Abuse
it is based on 4000 units of johotin acquired at theoretical ex-rights price of 1.8275 (rounded up to 1.83). You will get 1000 company warrants (strike 2.28, expiry 5 years) on top of the 4000 units acquired.
Stock
2012-10-15 16:47 | Report Abuse
Question is do you think JOHOTIN is worth more than 1.83 after share dilution?
Stock
2012-10-15 16:46 | Report Abuse
Just my 2 cents. Appreciate all comments
Assuming you bought 3000 units of JOHOTIN at 2.01 today, you will have:
-3000 units of JOHOTIN @2.01
-1000 units of JOHOTIN rights @1.28
-1000 units of JOHOTIN-WA strike price at 2.28
Cost of acquisition per share:
(6030+1280)/4000=1.8275
You will thus have 4000 units of JOHOTIN@1.8275 + 1000 units of JOHOTIN-WA
Pricing of JOHOTIN-WA is estimated to be approximately 0.1 immediately after ex-rights.
Current EPS: 15.6 cents
Estimated diluted EPS after rights issue: 20 cents
Upon ex-right, if JOHOTIN remains above 1.83 there will be some profit + profit from selling warrants
Stock: [ABLEGLOB]: ABLE GLOBAL BERHAD
2012-10-25 13:50 | Report Abuse
@Kyran, mind sharing how would the free warrant affect the stock's valuation?