Every conversion of PA to mother will make the mother more liquid, current market shares for Aturmaju is just 72 million (after latest conversion) and the public float percentage is still just 36%+- according to Thomson Reuters. This stock can be highly related to MWE (78%), DUFU (77%), AMEDIA (76%), BCMALL (76%) and many more which most of the shares are holding by the insider.
The gap will slowly to close by 2 ways: 1. Mother's price drops; or 2. PA's price goes up.
Anyhow, its more likely for mother price to go down compared to PA's price goes up. As long as the return by converting to mother share is rewarding and attractive, traders will still taking advantage of the "gap" which soon to be closed.
Note that, I did not say that PA price will not go up. PA price will go up anytime, once the gap is closed (then follow mother's price movement) or the gap still provides an attractive reward by converting to mother shares; as well as the investors start to see an increasing profit in coming quarterly result.
The quarterly result is expected to be released on coming Thursday (28/2/2019), might release early as well. Anyhow, if the results are disappointing, it will not affect the PA's price much as compared to mother's price. Because you still can convert the son to mother anytime. The risk involved is the conversion risk and unforeseeable events occurred (anything can happen during these 2 weeks period). However, if you want to play safe, can consider to buy in after you see its result.
Just my 2cents, I do hold some of its PA and not planning to convert. The reason is simple, I am not looking for fast profit.
You guys can reach me through StockBit Malaysia " Patrick TheBull" or Gmail "patrick.thebull6@gmail.com", **just for stock discussion**.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
davidkkw79
5,068 posts
Posted by davidkkw79 > 2019-02-23 22:47 | Report Abuse
....speechless