Ask yourself, if you are mayland, with 900m market price of land on hand.Would you sell at 330m? I know that mayland's boss is the same person, but if the management is so generous, L & G will not only give a dividend of 2cent (L&G with cash 500m)the stingy management will sell 900m market value of land at 330m to L&G?hahaha……
We use 分析力 to analyse the fundamentals of a company, use 洞察力 to locate the hidden value and potential ,and lastly use 洞悉力 to read the minds of management what actually is undergoing that our naked can't see.
Key questions: (1) Whether the valuation is fair & reasonable? No one know this until the Company provides more details (i guess there will be a circular coming out to discuss this). But if the RM4.2bil GDV is valid assumption, then the value should be at least (2) Whether the Rights Issues method is fair to minority? The alternative methods include (i) using the company cash balance to buy, or (ii) for company to issue new shares as consideration to the vendor (this is similar to private placement).
For (2), the Company needs to explain why are they not using the cash balance or new bank loans to buy the lands. If this explanation is reasonable, then Rights Issue is actually a fairer way for minority as compared to new share issuance as purchase consideration (because everyone can participate except the Rights Issue being too dilutive or giving too much discount).
Anyway, this is RPT so the minority can vote to decide after all the above info are provided.
The hidden agenda of the right issue is to discourage the retailers to subscribe for it , so Mayland can easily increases its stake to about 60% as indicated at minimum scenario...(please take note that ,the indicative right issue price is 21 sen)..FYI ,Mayland has increased its stake to about 32% CHEAPLY through right issue of LA about 3 years ago, because retailers has same complaints,many ended up not subscribing for it.Beside their own entitlement , Mayland has took the opportunity to buy about 100 millions LR from open market at about 4.5 sen each, in addition to that, Mayland acquired about another 57 millions LA through excess application.. that was the first time I saw a majority shareholder of a company applied for EXCESS in my 30 years history in stock market.
whether this a good deal to L&g or not...i wont touch this stock...not much integrity here...as someone mentioned...their intention is to screw Minority and controlled the PLC...by who know valuers and might also the projects cannot jalan..so die die sell to plc hehe..wild guess..this kind of mgmt..wont grow with shareholders no point holding also.just cut loss
i feel bad for the shareholders when the company has huge amount of cash yet ask from shareholders. but personally I think the deal is fair for L&G, only question is holding period. during rights issue, companies could be mispriced easily when shareholders are reluctant to invest further, that should be the window longer term investors should target
Dato Dr Yu of YNH property shd grab this LG since it cash worth abt 40sen /share .The share now only 34.5 sen. U not only get the assets free but also 5.5sen/share.
we not need to guess whether the RI good or not,the share price already told us ,i think if the RI change to bonus issue 5 : 8 now the share at least 96 cents.
如Sostupid 说的,买股票要分 析老板,你们认为L & G 的老板会吃人吗?为什么cash on hand 这么多股价越来越便宜,好像怕没有人要买。又如cytew 说的,我们小股东没有能力和知识,不懂分 析利弊,但至少懂得好股价高,烂股价低,你们认为L&G board directors so stupid 吗?股价给人control 6 months 还在睡觉?
tah16600 don't dream of share lompat,now the big fish lelong theirs share,like yesterday i heard from pasar malam "tauke sudah lari,kuli belum dapat gaji,mahu duit tak mahu barang,you mahu morah-2 ambil pi. '
I noticed in the audited report analysis of shareholding, none of the directors holding any shares/ICULs of the company? is it correct or I missed some info?
Hahaha. Expected lah. Damansara Foresta billings completed. What do you expect? But I know die hard supporters will mention about the net cash on the balance sheet again
kris wong L G is not a rubbish this is the board directors strategy,they want to make theirs share price cheaper in order to attract some smart investors to accumulate at lower price and share with them the cash in hand.but we should worry is the cash in hand was eaten by termites ?
The main purpose of right issue is to discourage the retailers to subscribe for it ,so Mayland can get excess shares at low price as indicated to be around 21 sen each.
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 537 views | 3 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 12793 views | 11 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
yefeng
37 posts
Posted by yefeng > 2016-11-17 18:00 | Report Abuse
Ask yourself, if you are mayland, with 900m market price of land on hand.Would you sell at 330m? I know that mayland's boss is the same person, but if the management is so generous, L & G will not only give a dividend of 2cent (L&G with cash 500m)the stingy management will sell 900m market value of land at 330m to L&G?hahaha……