the shit hits the fan for ATA. i understand from my broker that 3 companies listed on Bursa will benefit from ATA falling out - VS Industry, SKP Resources, and EG Industries. VS and SKP run already. EG will run soon.
@observatory, thank you for very insightful analysis. But why change the name to restrict it to a localized business, i.e. Ayer Keroh in bracket, if Scientex has the intention to make Daibochi bigger than it is? why not change the name to Scientex Packaging (Malaysia) Bhd or Scientex International Packaging Bhd. you may be right to forecast that Daibochi may take over part of Scientex entities (packaging business, right?), but Daibochi will not have a big enough balance sheet to acquire this larger beast. what do you think, whether Daibochi may do a rights issue to buy these huge assets? I doubt you can get much info from the Daibochi directors at the AGM, since the AGM is likely to be virtual.
wow, 30 years of building up the Daibochi brandname in the packaging industry just got wiped out in one fell swoop. Strange that Scientex management did not remove Greatwall brandname after the takeover. He must be very angry for not successfully taking over Daibochi. and you'd wonder what else would an angry person do to Daibochi, besides name change and dividend change. I think I made the right decision to just give all my small number of shares to Scientex at RM2.70.
I don't understand the statement Pecca made "the proposed diversification into healthcare will not be pursued...considering its existing healthcare-related business is not expected to divert 25% or more of the net assets or net profit of the group in the near future." In the first place, did the management or advisor not know that this is the case from beginning?. and if yes, why proceeded to announce the plan? and now the cancellation, I think there is more that meets the eye. The cash pile in the company must be the main motivation. Actually, why must diversify when Pecca's core business in auto upholstery is already in a dominant position in the market.
@obsevatory, very good analysis on why Daibochi should be higher priced.
I wonder what Scientex's mean PE is. I think it is lower since it has a high component of property business, the sector of which has a lower PE range currently. So if Scientex's mean PE is lower, then it does not make sense to privatize Daibochi - it will destroy shareholder value for shareholders of Scientex more than create. So if the PE gap of Scientex and Daibochi is a difference of 5 multiple, then by including Daibochi's profit fully into Scientex, it will take away the extra earnings multiple that holding Daibochi will give. Am I making sense here @observatory?
@observatory, thanks for the comments. I think both views have merits, including that of @investor420.
right now I see a long protracted 'battle' between the controlling shareholder and the minority institutional funds. and who knows what the share price will be after the offer lapse. I think I'd better take the offer and use the money to look for some other packaging stocks like BPlas or SCGM that pay dividends.
with so much cash sitting in Pecca balance sheet, how else can one take the money out? Rentas RM100mil acquisition of half cash half shares is best strategy to siphon money ... great move by Pecca owners
my broker told me to close both eyes and buy!!! He said plantation will turnaround this year due to their new palm oil mill processing their own FFB; last year made a loss of RM20+mil. so if this year no losses from plantation, and if everything being status quo for their construction division, we should be looking at RM26mil+RM20+mil - total net profit of close to RM50mil. wow, doubling profit...no wonder the share price jumped la
just heard interview of Sedania going into big data biz over BFM this afternoon...interesting! this biz might be a significant trajectory growth for the company...ineresting to note that there is cash in balance sheet of RM30mil or 15 sen/share! market price is 24 sen now, that means investors only buying Sedania at 9 sen..worth a look
watch out there will be another write off. this time from SML. VS buy the company's 129,654,000 shares @5.2p. Now only worth 4p/share. This means there will be GBP1.5mil paper loss! this is another RM8mil write off. so, expect another profit warning soon.
if write off is 0.85 sen/share...based on their PE of 8x, share price should be impacted by about 6.8 sen..that means, Monday share price should come down by about 7sen...expect it to go down to about RM1.35
Stupid management trying to diworsify into something they don't know...solar business??! when everywhere solar panel prospects are dropping like bricks...I think their next write off is the UK Seeing Machine and the Diamond Water
not yet holland! Not yet not yet! these poor investors, still in denial, still hopeful...soon fear will overtake you, and then you will be so desperate and panic...after that it will be holland for the funds (you know who you are), retail investors (poor buggers), the broker who corner the stock (colluding hustler)....ultimate victor is the owner
first the denial..and i can see many of you here are in that stage, except @disagreedog...next it will be fear stage, before you will be in desperate stage and panic...finally when the price drops to RM2, all you who believe the story will be capitulated!
Grapevine has it that the fund colluded with a broker to corner many stocks like ULI, SLP etc and push the share price beyond reasonable PE multiple so that the fund performance can be outstanding. No wonder last year the fund and CIO won many awards.
@lilbobeep the proof just showed itself. There is no smoke without fire. Go check if the CIO has resigned. I heard the fund managers managing the Kids unit trust have also been suspended. People hard earned money put in the unit trusts just vanished. Really pitiful. Next time people share info, be smart to listen. Dont defend the cmpany like you are the directors. I am just trying to preventpeople from losing $. GET THE DRIFT @LILBOBEEP.
My remisier told me not to touch counters held by this bank, suspected RHB. The fund holds more than 15pc of Uli. Also SCGM, slp, etc. they say also Hup Seng, oriental food, and pie. Someone should check if this funds holds substantial in these stocks. They must have cornered the stocks and now under investigation
If rhb fund is selling, then there is still long way down. The fund holds more than 5pc for both SCGM and Slp. Past few days carnage hardly 5pc! Why would they be in panic selling situation? Are they the one under investigation?