Posted by VenFx > 2017-02-14 17:04 | Report Abuse

I'm in , EG has been my major pick as ViS.
Thx fir Tradeview article again .

Posted by tradeview > 2017-02-16 10:58 | Report Abuse

Dear all, as EG Industries Bhd is one my value picks for 2017 when I called at 86 sens in my article, I feel I have the responsibility to give a bit of comment to calm the nerves. For those who have read my article would know that I have already taken into account of this corporate exercise by EG. Similar to all, I am not pleased with them raising cash from shareholders again because they did a private placement back in 2015 at around 82 sens. Now they opting for rights issue + bonus at 95 sens. All these was already part of my consideration and it is no surprise. You all can read the article here.

However, I would like to say 3 things good that came out of this rights issue announcement.

1. The rights issue is set to be fixed at 95 sens which is way above the private placement in 2015. This is good because the company own internal valuation is much higher than my own expectation.
2. They also tie it in with a bonus issue, which is good because it enlarge the shares which allows more liquidity for market activity.
3. The rights issue + bonus is primarily used for business expansion and acquisition. Not to pay off debts. So to me that is a plus.
16/02/2017 10:57