It does not matter co making loss or profit, important is banker invest and corner the stock...it is interesting as no body know the banker target price
Both right issue and Private Placement are the callings for additional business capitals by the Company.
Similar with additional OD given to you by your banker, the higher the returns (profits) following the usage of the OD, you would not mind to utilize the credit facility despite the margin of finance of your asset(s) with become higher which mean your interest in your assets are diluted future.
You had preferred the market value of your company share is higher before the right issue or PP so additional capitals that are receiving into the Capital Account (Credit Capital Account & Debit BANK Account) will be a larger amount.
As for GPacket, it holds 37% in G3, therefore the value is about RM357M (415M shares in G3 NOSH X 37% X RM2.34) in the G3. Whenever the share value of G3 going up, the share value of GP will appreciate in addition to the performance of itself. So, GP has an the advantage in this investment (shareholdings) in another public listed company.
When the ordinary share of GP is RM0.67 , its Warrants can fetch RM0.27 a unit because the conversion is RM0.40 only.
On the contrary, certain Warrants and the conversion prices are higher than their ordinary shares. For example, each Warrant is RM0.70 and the conversion price is RM1.50 BUT the ordinary share is RM2.05 each. There are such many such cases but not GP Warrants.
Lastly, there is such thing called "underwriting by the syndication/investment bank" whereby the parties that help the Company to solicit funds (additional business capitals) will actually committed to fully subscribe the unsubscribed right issue or PP shares so before the price of the RI/PP is determined, the IB will play their important roles to reflect the reasonable market value of the share in the open market. SO, the role of the "Operater" is coming into the picture. In the case of GP, the IB have done a excellent job reflect the reasonable value of GP and its Warrants.
IF we have noticed this development much earlier, your profits must be much more.
No hurry, if got holding power, bcos the Warrants only expired in Nov 2023. IF GP ordinary share can go to RM0.80 in a year time, the Warrants shall be RM0.40 each, RM0.15 / RM0.25 X 100 = 60% appreciation, much better than FD rate or higher than OD rate.
If the additional funds will be used to bring in more profits, by investing in new project or enlarging an existing project, then the value per share can be improved later even though the number of shares issued has been increased.
The technology about the car parking system should be able to attract more customers. Something that unheard before locally and it is a creative one.
G3 also got their technology sector, so i believe the technology in GP is working together with G3.
You see power root OS RM2.08 BUT The Warrant RM0.71 & Conv price RM1.54 SO the total cost to subscribe one OS is RM2.25 ISN'T THAT THE Warrant is high the price?
One more, DSONIC RM0.92 BUT The Warrant RM0.42 & Conv price RM1.09 SO the conv price even higher than the mother share, the total cost to subscribe one OS is RM1.51 SO the warrant is terribly expensive..
As for GP warrants (0082WB) Conv price RM0.40, when the price was RM0.20 , the OS alraedy RM0.65 SO the warrants are very cheap...Should have bought more at RM0.20 level.
Congrate to all Gpacket investor as today another breakthrough high , hope next week will continue this up trend. Happy Mid Autumn Festival & Malaysia Day and enjoy the show next week...
IF the OS can reach RM0.80 , one warrant can fetch RM0.40 . IF you entered at RM0.25 , earn RM0.15 means 60%. WHEN entering at RM0.26 (earning RM0.14) , the margin is 54% already. By now OS is RM0.68 , in theory each warrant can fetch RM0.28 only.
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....
money_cum_cum
197 posts
Posted by money_cum_cum > 2019-09-10 15:40 | Report Abuse
Wahoo.. So happy day day make money.. Up up the way.. Hold hold for more profit.