Zoom,

I'm with you.

In fairness, Kenanga 'downgraded' TP from 95 sen to 93 sen , because of enlarged share capital by 10% due to PP.
I can live with that...increase of 10% of shares but only lose 2 sen ( or 2.1%) of TP is quite an acceptable trade off.
OCK now much stronger financially with additional RM64 mil in the bank.
Less borrowings in USD is also good...never know what USD/MYR will be in coming months and years.

How soon will before it breaks new high? Kalau gua tau, ho sey liau lo :-)

But at least, the main 'culprit' (PP) is out of the way.

Good luck.

Finally...
PP done at RM0.81 sen...only 2.75% discount.

Let the Games begin....:)

Zoom,
Been absent from posting simply because I felt that until the PP was completed, there really wasn't much to talk about, other than pure speculation. The share price gyrating between 82 sen to 83.5 sen for the past 2 weeks with modest volume only highlighted my point.

The JV with CapAsia on 60/40 basis is clearly positive. Announcement said OCK to fund for their stake through internally generated funds, I think. Where is the money to come from? From the PP perhaps?

Since no details of the PP has been announced yet, CapAsia could very well still take a portion of the PP. Speculation again :-)

Then , we have to study if the price paid for the Vietnam assets are fair and reasonable or not...We will leave this bit to the Research or Broking Houses to tell us.

Which leads us back to the PP, again. If the market likes the acquisition, then presumably there will be keener interest on OCK tomorrow onwards. How that will affect the 5 Day VWAMP remains to be seen.

Out.

Promising start ...
Let's see if it can sustain momentum before further announcements

Charlie,

This is how I see the calculations of mother price after split n warrant.

Assuming, it closes at RM1.80 , then you are correct that the price after split is simply RM0.90.

But because there is a free warrant on 1:2 basis AND because the warrant is in the money ( conversion price lower than market price), then :

(RM0.90 x 2 ) + RM 0.50 = RM2.30
Then RM2.30/3 = RM0.7667, or rounded down to RM 0.76, being the Opening reference mother share price.

Assuming , NO premium for the warrants, then the warrant should be listing at RM0.76- RM 0.50= RM 0.26

Checking the calculations:

2 shares ex split @ RM0.7667 + warrant price @ RM0.2667 + warrant conversion price @ RM0.50 = RM2.30

Intrinsically, there should not be any gain out of this exercise BUT due to the time value factor of the warrants ( 5 years to expiry), there usually is a premium accorded to the warrant price.

So, whether this exercise will be fruitful or not, really depends on the mother price after split but just before the listing of the warrants. Assuming it hits RM0.80 , then the warrants should list at RM0.30 + premium.

Good luck.

Zai2,
That's the one.Tqvm.

Makes perfect sense if this interested PE firm turns out to be CapAsia.
Let's wait and see.

Zoom,
will probably hang on for the ride, whatever happens post PP. Read somewhere maybe in a few years time, OCK could spin off their tower assets into a REIT.

Still no announcement re PP price determination today...so we continue to wait for the harvest, and hopefully finally breaking out of 84.5 sen.

A few weeks ago, read a small report in the Focus that a Private Equity(PE) firm from Singapore could be eyeing a 5% block in OCK. Let's see if this happens as a result of the current PP.

Coincidentally, on 15 July OCK announced to Bursa that CapAsia Telecommunications Ltd based out of Singapore bought a 40% stake of OCK Vietnam Towers (OVT), which is currently still a dormant company.
The intended principal activity of OVT is tower facilities, utilities and communication network for mobile and broadband operators.

According to CapAsia's website, they area PE firm focussing on Infrastructure sectors in South East Asia and emerging markets. CapAsia is majority owned by The Rohatyn Group and has CIMB Group as a significant minority shareholder.

The plot thickens....I am no Sherlock but I think I like the events that are unfolding.

If not mistaken, this will be the 3rd round of Private Placement by OCK since listing. Why , you may ask, do a PP instead of Rights Issue to all shareholders?

PP is usually much cheaper, in terms of fees and quicker to do. A " normal" Rights issue can take months and costs more, with all sorts of approvals and EGM needed...date setting for entitlement, trading of rights shares etc etc ...you get the idea. Although, in fairness, a RI has no dilutive effect on shareholders, if you take up your entitlement. But, sometimes doing a cash call can be punitive to the share price. So, basically, you can't have it both ways.

To attract Fund Managers or well-to-do investors , they sometimes want a meaningful block of shares to be interested, and at a "attractive" price. Rather than buy slowly from the market, a PP can solve this problem instantaneously. So, what determines an "attractive" price then? That's when the Directors often use the 5 day Volume Weighted Average Market Price ( or VWMAP) to determine the placement price. Not finished yet... usually a discount of up to 10% of this VWAMP is allowed as a sweetener. The better the Company, the lesser the Discount required to be given.

So, next question? Who qualifies as a Private Placee? I have never been asked as a placee, so I can't say for certain but its fair to say, higher net worth investors or big Fund boys. For disclosure purposes, if a placee takes at least 5% of Placement ( therefore 5% of enlarged paid up capital), then the Placee has to be disclosed to Bursa as a Substantial shareholder.

The mystery deepens when placee doesn't take up 5% individually and hence, no disclosure is required as to their Identity, until the annual report comes out ( if not sold by then). Safe to say, they can't be Directors or existing Substantial Shareholders of the Company. Ever notice during an IPO, that the vast majority number of shares on offer usually goes to "Selected Placees" and a smaller portion goes to Bumi and Public allocations? The Bumi and Public portions usually make up the numbers of shareholders required for a Berhad, which is at least 1,000 shareholders.

Any restrictions of the placed shares? I honestly don't know but you would think that since they got it cheaper that market price, that the Directors may have some kind of Moratorium to prevent them from a quick flip and vomiting all those shares back onto the market.

So, pant pant pant...just from my observations over the years. During, price determination period, share price tend to just drift ...as we are observing now with the OCK mother share price. Once the VWAMP is determined, fingers crossed...usually there will be a spike in the share price.

So, there you have it....Sorry, so Chiong Hey . All views purely my own. Cheers.

Breakout above 84.5 possible but unlikely....until completion of Private Placement.

Meantime, I suggest looking into the warrant... should spike once PP price determined and maybe, places identified. My 2 sen aje

Sorry, my bad...PP = Private Placement

Notice that warrant is running up faster n have greater volume compared to mother?

Only mother price used to determine PP price fixing.
The sooner PP is completed, the sooner it will shoot through 84.5

Master Zoomboom,

Much more pleasant on the eye and better for the blood pressure when you read a posting written with poise and eloquence...As the saying goes, you are a Champion and a Scholar :-)

As for OCK, no lah...late entrant only, sadly.
Wasn't convince on biz model until Telenor/Myanmar deal.

Anyway, fingers crossed. Hopefully, PP completed soon. Otherwise , could miss out of strong rally...Dow and S&P at all time highs.

Zoomboom,
Judging by my staggering 107 total posts, you can tell I'm not a major contributor :)

Sometimes very tired to read all the name calling or mud slinging amongst some members...many probably reincarnate back with different names

As for OCK, after Myanmar/Telenor 920 towers, hopefully more contracts from other Indo China region.

Good to see many supporters here.
Not sure why still announcement of PP price fixing yet.
IMHO, mother price will crab sideways until that is finalised.

Didn't buy...too illiquid.
But vol n price appear uptrend since new shareholders stepped in.

Mother price dropped n vol shrank after private placement announcement.
Happens sometimes to entice placees to take up placement as PP price usually based on last 5 WVMAP.
Buying opportunity imho

Syed Ibrahim,
After EGM approvals today, we now wait for ex-date announcement.
The whole thing could take at least 2-4 weeks to complete.

Your TP looking more and more likely:)

Suddenly much more active and share price inching up bit by bit since emergence of new shareholder.
Can turn illiquid anytime also.That's the real danger.

Today is last day for special 1.5 sen dividend. Ex date 16 June.
This afternoon's trading could be interesting.

Alamak typo error...SHH not SFF

Lloydlim,

Do you think or know that something is cooking at SFF? A corporate exercise perhaps? Its gone up from RM1.70 less than 1 month ago.

Newbie,

Today T+2 after super heavy vol of 45 million shares on Wed.
Maybe , next week turbo charge kicks in again.

Their landbank and properties have not been revalued since 1994, according to annual report. Maybe they doing some revaluation exercise.
Possibly followed by corporate exercise to increase number of shares outstanding. Currently, slightly less than 50 million shares only.

But has gone up quite a bit past month. So, be cautious.

Insidernewz,

u da man...RM 130 million contract awarded

Have to explain UMA first...

Wait... Unless ...unless there are more than 1 in the pipeline?:)

Alamak, I thought you are the one with the info...thx in advance

Contract awarded?

Q3 results just out just now.
What a beauty...EPS of 3.47 sen just for Q3 alone.
Possible stampede in the morning...Go Comcorp Go

Since the previous warrants just expired, hopefully Tan Sri will decide to issue new ones when next qtr results are released.
That would be a nice CNY ang pow to all his loyal shareholders.

Q1 results was solid. Up over 100% YOY to almost 10 eps.
Since their warrants expired in Sept, maybe Gadang Board might reward shareholders with new free warrant plus other goodies in coming quarter.

utc,

care to provide some pointers? Another attempt at RTO ?

Am I the only one that has noticed that Nihsin-wa is providing an unusual opportunity?

Warrant Listing date : 23/2/15
Expiry : 11/2/18
Ratio : 1:1
Exercise price : RM0.20

Nihsin mother : RM0.345
Nihsin -wa : RM0.14

Most other warrants with these kind of parameters would be trading with at least a premium of 5 sen to 10 sen. Surely , not at a discount??? Or ,am I missing something?

Strong job data, strong housing starts and strong USD.
What a fantastic combination of news for Lii Hen.
3rd quarter results should be strongest yet...

TTB,

From memory, RTO exercise collapsed a few months ago ,right?
Wondering if they found another suitor...more upside you think?

Bracoli,

Yr previous posting on 29 Oct had tp of 1.50
Very close already...more upside heading to next quarterly results?
Announcement of REITS maybe?

As the share price marches happily towards RM8, could another corporate exercise to reward shareholders be due soon? Last 2 have been 1:1 Bonus Issues.
They had a 2:1 Share Split 10 years ago.Maybe we are due for another one this year?
As the share base (number of shares) gets bigger, it becomes harder and takes longer to continue to do a 1:1 Bonus Issue.
Simpler would be to do a share split without touching or worrying about the size of the Retained Earnings n Reserves.
A share split merely increases the no. of shares by reducing the par value.Plus it makes the issuance of warrants easier as the warrants exercise price can't be lower than the par value .
So, should the Board of Kossan ask me for my 2 sen, I would humbly advise a 5:2 Share Split (new par value of 20 sen) and 1:5 free warrants.
Then we are all good to go.

Above RM5.50 levels, its back to basic earnings.
1Q eps was about 18 sen. Without sounding too simplistic, annualised earnings will be about 72 sen. What PE you give is really your call.

Obviously, the Bonus/Split exercise has given it a new leg up, with the prospect of tripling your shares.

I believe 2Q results will be spectacular...even record breaking. The gain in exchange rate along between end March and end June was about 5%. Strictly speaking, that full amount alone in exchange gain should flow directly into PAT. Say, RM100mil sales per quarter. Would that be an extra RM5 mil for doing nothing? And would that go straight into bottom line?

Good luck to us all.

Bonus n share split should be completed before end of Q3 according to announcement.
Next quarterly result due out end August. If as good or better than previous qtr, wouldn't be entirely surprised is share price heads towards RM5.80-6.00 before bonus/share split.

The quantity of the Q4 PAT is very commendable but one needs to read the accompanying notes to the accounts to see the "quality" of the earnings. The notes state that there were 3 one-off items that contributed RM 27 mil of the profits before tax. If u strip out these items, then Q4 results actually fell quite a lot y-o-y.

Plus, the proposed dividend of 2.5 sen is lower than expected although slightly better than last year, split adjusted.

Eps almost 2 sen for Q1.Other than trfr to Main Board and 0.5 sen dividend, no other goodies. Was hoping for bonus issue or free warrants.


Cash on hand over RM 36 million. Revenue increased over 30% y-o-y.

No mention anywhere whether listing status to be maintained if G.O. fails .Presumably, Felda wants to keep the listing status to inject their assets and developments. Otherwise, what is the point of buying into a Berhad.

Just my 2 sen. So, at current levels, not much downside. Worst case, sell to them at RM1.55

A bit of profit taking after the huge rise is to be expected. The Company can deny any immediate plans of disposal of the 644 acre land in their reply to Bursa's UMA but what you can not deny is the inherent value of the land, which is what Public Investment research was referring to.

splaw,

Your comments are indeed spot on. Up until 2013, probably fair to say BCB has been a so-so small to mid-size player principally developing properties in the Kluang/ Batu Pahat areas.

Since their foray to Klang Valley , namely Concerto and Kota Kemuning, things are turning around. Not sure if they'll pay any dividends in the near future as their debt level is a little high and the cash would be used for working capital for the Medini project perhaps.

For me , happy to trade off dividends for higher share price appreciation.

BCB only paid RM 16.50 psf for their land in Kota Kemuning compared to Ecoworld's purchase from Tropicana for RM 35 psf near Jalan Kebun.

I believe BCB's land is in a more mature and established location than IJM's Rimbayu and Tropicana /Ecoworld's parcels of land. Furthermore, BCB managed to get approval to built only bungalows on their land.

Their JV to build 2,000 luxury condos in Medini Iskandar later this year will increase BCB's profile with Institution investors and secure solid future earnings and growth. Remember, new RPGT rules and capping of RM 1 million for overseas buyers don't apply in Medini.

Matrix just announced proposal for 1:2 Bonus Issue.

Hopefully US market behaves overnight.

007,

Love your enthusiasm....but RM4.50 maybe tomorrow

James Bond 007

Bonus issue + free warrants would be yummy

Check out bursadummy's Blogspot re series of write-ups and thoughts on Matrix Concepts.

Most interesting is the latest one.

http://bursadummy.blogspot.com/search/label/Matrix

Matrix's flagship development at Bandar Sri Sendayan received a 2 page write up in this morning's Star's Property Guide.

Must say the timing is perfect , just a week before release of FY results on 25th.Should get another pop tomorrow, perhaps?