I love Petronm, but i'm a bit worry about its RM14 billion expansion plan, that is 4x its current market cap. I wonder where it will get the funding? If it is through rights issues, we're screwed!
PETALING JAYA: Petrol prices from Jan 18 to Jan 24 will go up by four sen per litre, but diesel prices remain the same.
RON95 will be priced at RM2.30 per litre while RON97 will retail at RM2.57 per litre.
Meanwhile, the price of diesel remains unchanged at RM2.32 per litre.
The new prices were announced on RTM1 on Wednesday evening and will take effect from 12.01am on Jan 18.
The weekly fuel pricing mechanism came into effect in April last year and the prices of petrol and diesel was been placed on a managed monthly float system from Dec 1, 2014 following the removal of fuel subsidies.
Do not worry about the the 14b expansion Do not be misled by my good friends in hengyuan The management had proven themselves can do a good job They won't kill themselves to let you worry and and they are not worry Do not forget they have more sharrs than us Common sense tell us they should worry more than us if they do something we can worry
14b expansion is indeed a risk of which 2 types come into mind - i.e. operational risk in the possibility that the project may be mired with problems and constrained liquidity and free cash flow.
I surmise that Petron's highly erratic price movements is linked to the pile of structured warrants issued by the investment banks. It raises the age-old question - does the cash market lead the warrants or vice versa.
With so much more "bang-for-the-money" in structured warrants, I can imagine big players swinging the mother shares to profit from the warrants.
You must learn to think less Any worry leave it to the management Because we trust them can do a good job And practically we can't do anything because we are sleeping partners
Go ahead to top up if you think you got the fundamentals right. Mr Market is unpredictable and hv no concern provided you sure your homework is accurate enuf. You are a few brave ones remain.
Halite 12 ringgit a piece not many can afford When you can not afford a banglow then you will said the compund is so big difficult to manage You will say the loan is too huge, no way to repay But people still live well in the banglow and not poorer later
Hehe, this operator real stupid too sometimes. For no reason push down Petron juz to match HY drop. Of course many value investors with strong cash like me will quietly enter to catch more Petronm since the price is over bashed down liao
i think it is reasonable to question where petronm gets its RM14 billion funding! I can tell you if rights issue then you're all screwed ... so be realistic!
Why not you sell all your shares bought at 5 since you feel so screwed everyday Still good profit mah... We don't mind the right issues with free warrants since it is earning accretive Look at umwog, after right issue to repay the borrowing, the price move up 100% So right is not necessary a bad thing, especially it is used to improve earning
If a compamy can not do expansion to improve its earning Then what the hell we still dumb dumb hold. What are we waiting for since it is already so big so small
You have misunderstood my good friends stockraider and probability, they are using this to prove the value of hengyuan. They did not say it is value destroying
Learnt?
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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....
Halite
8,633 posts
Posted by Halite > 2018-01-17 16:47 | Report Abuse
Petronm and Petdag are the same category of business
market PE is 16 currently
with expected earning of around 160 cents
that the expected market price can be RM 25
so there is still a potential of 100% gain with the current price
of course , i also hope Hengyuan will do equally well, because we want to win-win