thinkbig, m not a boss,u r not spamming, relax bro,we r in the same boat here..as long as hold abv 0.58.. i m not worried ,, means big players n insiders not bailing out..good luck to all here..
Just check through Digi's balance sheet. Digi dun have lots of cash on hand because mostly pay out as dividend. If Digi really want to buy Gpacket, it needs to reduce dividend which is unlikely as a dividend stock or through borrowing (private placement or ICULS or banks). Moreover, the CEO in Q2 report said that Digi has assigned çapex RM650 million for LTE. This is like internal built up LTE instead of through acquisition. Any comment?
No need have lot of cash to acquire P1, just issue Digi shares will do but eroded the EPS but gaining more traction on LTE and more customers........in the end even back the EPS. Depending how far their LTE coverage goes but ways better than Maxis/Celcom LTE. Cos the leverage on P1 existing infra and spectrum and also customers.
Good that finally someone study their balance sheet :) Now assume you're DIGI CEO:
1. need to spend 650m to build LTE using unknown time (6 months/1 year/2 years?) and many unknown uncertainty (project fail? technical expertise?) 2. spend 1b to buy out a ready company to provide worldwide LTE coverage (with support team ready)
By selecting option 1, you can save at least 350m, but also be ready to lose your customer to competitors that providing LTE, I assume that most of the peoples start changing to LTE next year, unlimited loss (if a customer go away from using your service, they will seldom come back)
By selecting option 2, you can "wasting" at least 350m (we not sure about the buy-out price yet), but you're ahead of your competitors that only provide coverage in Klang Valley area/Selangor.
I believe DIGI is an ambitious company that want to move infront of Maxis & TM, they try so hard in these many years. But your decision, good luck bro...
Latest rumour from friend in digi, rumour hit high up past GM lvl..no deal finalized just yet..still discussing TnC..seems like chances extremely good to me..
Can anyone tell me what if Digi dun intend to take over Gpacket & just pass a resolution to be in business partnership with Gpacket? When this happens, what happens to Gpacket's share price?
I have confident on this stock as the volume pick up consistently, even share distribution also makan all. Likely something is going to happen. Watch out...
The news of Digi & Gpacket has been spreading around for more than 20 days since 10th September 2013 report came out. How come both parties never come out and make clearer clarification??? Any catches?
I guess T3 sellers sell on last minute, not so worrisome... Let us see what happens on Monday. Hope that US dun hv great share drop or else, market sentiment may have different.
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JTFX
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Posted by JTFX > 2013-10-04 15:21 | Report Abuse
thinkbig, m not a boss,u r not spamming, relax bro,we r in the same boat here..as long as hold abv 0.58.. i m not worried ,, means big players n insiders not bailing out..good luck to all here..