Let's me explain why people sell at 79.5. Simply because there are buyers at 79.5 sen, for those who exercise ESOS, 0.5 sen is not big deal, and by selling to market, they will get the money on T3, if you accept the offer, it takes 10 days to receive your cheque.
BJ and JS will not sell to open market, simply put it, no buyer. They will create value to the company before selling it en bloc to third party, most of the time to fund managers! By then, probably a price of my TP RM1.50... haha, I can laugh to bank then.
Yes, they can change their mind at least half a year later. But for now, for this GO, they can not change their mind already. Even then, half a year later, they cannot offer anything lower than 80.0 sen!
I think they shall have in mind the plan or schedule moving forward toto transformtransform redtone. It is unlikely to turn around the plan. Wait for the day comes . Soonest
eric1 : Here you are. Actually is in Headlines of this webpage, second articles.
Valuation Accept offer as the offer price of RM0.80 is higher than the current share price. Nevertheless, we advocate long-term investors to continue holdings the shares, while awaiting catalysts to materialise over the mid-to-long term.
Having said that, should the company’s direction remain unchanged for the next 12-month and based on the current available data, we estimated that RIB could post a net profit of RM39.4m in FY16. Its EPS, however, would be diluted followed a series of ESOS and ICULS conversion. Assuming full conversion, its share base would balloon to 783.5m in FY16 from the current 521.4m in end-3Q15. Thus, assuming a 25%-30% discount (as a result of its smaller market cap) to the big cap telco average forward PER of 23.1x, RIB could be valued at RM0.81-RM0.86 based on FY16E EPS.
GO ends tomorrow, those who exercised ESOS has no choice but to accept the offer @ 0.80. Let's wait for result tomorrow, may be BJ gets 55%. Good for the counter and company, then next week onward, we can expect fantastic show. Still with my new TP of RM1.60, double of offer price 80.0 sen, simply because profit is going to double!
speakup: you are very very right! It just cannot move this week, must get those employees accept the offer first, latest by tomorrow afternoon 4.00pm. Perhaps the show starts after 4.00 pm.
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....
pang72
50,990 posts
Posted by pang72 > 2015-05-12 15:37 | Report Abuse
As long as BJ ang JS are not selling , this stock shall look promising in near term because both them are key driver