Don’t confuse people with tp their share increase 30% so their pe afterward at the current price alrd nearly 20fpe, unless u got very trustable their future earning will increase
The price seemed to be moving along the lower ascending trendline of the symmetrical triangle pattern for the past 3 days. Lets see whether there is a rebound on the cards. Otherwise, a breakdown from this lower trendline marks the start of a new bearish trend.
They require around min RM52 mil in new capital for the following good reasons: 1. RM12 mil to reduce loans from current RM27.9mil to RM15.9 mil (good capital mgmt here) 2. RM4.4 mil in PPE capex ( we love company that keeps investing) 3. RM36 mil in Working Cap
The issue is what is the final dilution effect to existing shareholders based on the max case of 30% new shares (ie 161mil new PP shares) at max 20% discount to price..
now the only risk is that if the share price keeps dropping gao2 before the price fixing date, due to softening copper price. then to raise the same min ~RM52 million, they will need to issue more or they may have to say no to one of the 3 major proposed utilisations.
However, if the price keeps softening, they may have to delay because their approvals is at max new shares of only 161 mil new shares.
Assuming la price go down to 24 sen, i dont think it makes sense to raise total RM52 mil. the Board may have to prioritise what is most important use of capital...
let's see.
simple analysis shows that if they issue 161mil shares at 10% discount= effect on Theoretical Ex is: price will drop by 2.3% and if at 20% discount= drop by 4.6%
(But yes, I dont like la super crazy 30% additional shares at max 20% discount PP. who they wanna give to? auntie uncle issit? unless they can secure the major institutional by using the " I am Green Company")
from the way the company is performing so far, looks like it intends to grow further and not like other penny counters like Fintec, focus, xox...that only want to con money so let's wait and see...the company choose to do PP rather than borrowing from bank as it can help to save interest cost and lower down the liability, in short term, seems like not good to existing shareholders like us but in long run should be good if the company can make use of the PP for good reasons
I just checked JAG QR as at 31-Dec-2020 (2020 Q4), trade payable stood at RM8.993mil, but in latest QR as at 31-Mar-2021 (2021 Q1), the trade payable in 31-Dec-2020 column show RM16.635mil, what a big different with RM7.642mil
aiyo. i have significant amount of my portfolio in JAG. suddely that Powell say they wanna expedite the tapering earlier than original. how ah? everyone selling la like this. aiyo :(
sold half d, this counter is dead at the moment, take some time to revive...and not sure how severe is the impact once pp price is announced...too many uncertainties...somehow the price was goreng 1 day then announced pp...damx fishy
the move in Copper futures is scary. all hell is breaking lose. god have mercy!!! now already below 50 day EMA. Wont be suprised that it will slide towards 200 EMA before any bounce back... :(
will June be a repeat of Gold's tantrums last August?
Tommorow bursa will be super green lor. Big boys push the market super red for 2 trading days just to make handsome and easy profit. Jialat B40 like me will become bankcrupt lor like this
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....
ceelo87
405 posts
Posted by ceelo87 > 2021-06-10 15:37 | Report Abuse
HE HE... weak holders selling, but can notice buying volume is good.. I believe it's time