I think they have got it at very low and competitive price, the original government budget was RM1.2bil, they got it at RM993mil, about 20% discount. Salcon's stake is 36%, ie. RM358mil. Is good to have the project, since the project will take 36 months, contribution to the profit not that much. Trade cautiously since the news already announced.

The directors don't seem to be interested to exercise the conversion of warrant even though rumours that they have got the Langat 2 project, and also pending the special dividend of the disposal of water assets in China, that's strange, anyone can help to explain? Thanks

Strange, one of the key director, Dato' Eddie Leong disposed 3.1 millions warrant at 6.x sen last week

Dato' Leong Kok Wah
Descriptions(Class & nominal value) Warrants

Details of changes Currency: Malaysian Ringgit (MYR)

Type of transaction Date of change No of securities Price Transacted (RM)

Disposed 10/04/2014 1,600,000 0.066

Disposed 11/04/2014 1,000,000 0.065

Disposed 14/04/2014 500,000 0.060


Circumstances by reason of which change has occurred Disposal of Warrants in open market

Let's do a simple analysis, RM1.2bil contract, 3 parties JV, Salcon, MMC and AZRB, say all equal share. each will get RM400mil. Selangor MB said in the Parliament yesterday that the project will take 3 years, if we use a linear distribution, every year will be RM133mil. Said 10% profit(which is very high), every year it will contribute RM13.3mil Gross Profit to Salcon. Which is 2 sen per share before conversion of Warrant. After conversion, about 1.8 sen. It doesn't really help the company performance a lot as the share base of Salcon is big, ie. 613mil shares. Suggest to trade with care, perhaps buy on rumours and sell on facts

certainly not for contra

Very strong support at 0.75

On Langat 2, according to the Star's report last year, five front runners, ie, IJM, Gamuda, UEM, Ahmad Zaki and JV between MMC and Salcon. It will be a tough fight. The estimated contract value is RM1.2bil, say the profit margin is 10%, which is extremely high considering that this is a open tender, the estimated gross profit will be RM120mil, if we assume the JV between Salcon and MMC is 50:50, each of them will get RM60mil. And if the project is 3 years and work done is 20:30:50 for the first,second and third year, Gross Profit contributing to Salcon will be RM7.2mil, RM18mil, RM30mil. This is already a very optimistic projection and the actual case may be much lesser than that, even if Salcon gets the job.

Support at 0.74 and 0.745

I don't know whether my view is correct or not, basically the directors don't want the warrant holders to convert, as this will dilute 10% of their shareholdings. And the company don't need the additional shares anymore as they have sold their water assets and get back plenty of cash. My guessing is they will make sure the share price not more than 0.75 before 17 May 2014, just to deter warrant holders to convert.

this is the reason I just watch this counter for analysis purposes, not for trading

I just checked their 2012 annual report from their website, the majority shareholders already sold all their warrants in Sep 2013

This was last year, no idea how much they have left with them now

Pursuant to Paragraph 14.09(a) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the following Directors of Salcon have given notice of their dealing in the securities of Salcon as set out below:-

Name of Director
Date of Disposal
Number of Warrants Disposed
Price Per Warrant
Percentage (%)

Dato' Leong Kok Wah
13.09.2013
16,704,800(1)
RM0.248
15.92

Dato' Seri (Dr.) Goh Eng Toon 13.09.2013
16,704,800(2)
RM0.248
15.92

The CFO disposed 130 lots with average price of 0.75, please trade with care

Pursuant to Paragraph 14.09 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the following Principal Officer of Salcon has given notice of his dealing in the securities of Salcon as set out below:-

Name of Principal Officer Type of Securities Date of Transaction Type of Transaction Number of shares transacted Price per share Percentage (%)
Law Woo Hock Ordinary shares of RM0.50 each 27.03.2014 Disposal of shares 80,000 0.748 0.013
Law Woo Hock Ordinary shares of RM0.50 each 28.03.2014 Disposal of shares 50,000 0.750 0.008

Hi stteck, it was just my guessing... On Chinese buyers withdrawing from iskandar, I heard from friends in property sector

Am told that the MH370 has affected the confidence of Chinese to Malaysian, apparently a lot of sales cancellation in Iskandar Johor and affecting developers like Mahsing

Any idea whether the Selling off of the Water Assets in China completed? If I remembered correctly, the Chinese has asked for extension. They are selling to Beijing Government owned company, don't know whether with all the negative impact of MH370, the buyer will make more stringent check on the due diligence?

the total shares of warrant is 104,910,701 Current Salcon's total share is 612,913,152. Assuming full conversation of the warrant after 17-May-2014, am I right that the total share will become 717,823,853 which is about 15% more. In this case, if the current price is 0.75, will it be possible that the price will be adjusted to 0.64? Anyone can help to advise? Thanks

Dare not follow, too unpredictable

if i'm the major shareholders, I will press the share price so that no one will exercise the warrant in may

Trade with caution. Because the company doesn't need the RM78mil any more as they have plenty of cash after the sales of the water asset. Moreover, the majority shareholders sold a chunk of warrant at the price of 0.24-0.27 in December last year just before they announced the deal. They may just let the warrant expire, because they new shares, if converted, will dilute their share holdings.

i guess is again playing to gain from the WA, the WA is very cheap as it is near the expiry date now

could be due to the contra players.... This counter is very difficult to play contra

don't think that it is related to any good news, I think is a play to off load the warrant which is going to be expired in May, trade cautiously

The mother share's volume has overtaken the WA, what does it mean?

rebounding...

I think some one has accumulated a lot of WA at 0.03 and pushing up the mother shares now to push up the WA, WA is now at 0.09, making at least 150-200% profit!

Dare not go in, some one just buy 1,500 lots of 0,75!

a bit worry that is only a one day play

If the mother share is 0.90, then warrant will be 0.15, however, I think is unlikely

conversion price is at 0.75, the warrant is still out of money yet

It could be the last chance for the Warrant holder to let go

any good news? Scare to go in now

it's charging

What happened? Any announcement after 5pm? Would it be limit up tomorrow if there is an QA announcement after 5pm today?

The problem is the warrant will be expired in May, and all the majority shareholders already sold their warrant end of last year when they pushed up to 25 - 27 sen, is very risky to hope that it can rebound

have to wait for afternoon session

Same advice, is for mid to long term, don't contra and try to avoid the WA, too close to expiry for comfort

Or, BEWG may also buy over Salcon other water assets in Malaysia, since Salcon is going to concentrate in property development

With their relationship, perhaps Salcon can be the sub-contractor...

This is the Chinese company who bought over all Salcon's assets. They have secured a RM900 mil. Underground sewerage treatment plant project in Malaysia.

another 1 day show!

Just an advice, buy mother share as warrant is too risky, too close to expiry and the conversion price is high, that's why the major shareholders happily threw all their warrants last friday when the price touched 25

My guess was few months back. Both Salcon and Focal Aim more attractive as he just needs RM280mil to get 65% control and also 1,000 acres of land in Johor. While in Salcon, he need about RM400 mil to control 60%, with RM200+ cash in Salcon but no land

Gone case, Tan Sri Liew won't take over 2 listed property firms, it just doesn't make sense

Eko World proposed to take over 65% equity of Focal Aim, who is a lost making developer, but with a 1,000 acres land in Johor, they are not JV, but take over a listed company as their listing vehicle. They JV with Salcon also in JB, with a 49% stake in that JV company, and the project only 11 acres with a GDV of 1 billion.

The conversion price is 70 sen, Mature May next year, they sold at average price of 24/25, meaning that they don't think the share price will go up to 94/95 in 8 months time

The disposal exercise will only be completed in 6 months, have to wait