RPS float only 20% of mother share so 1.02 still easily cover PA dividend but management surely has plans for the money raised to payback far more than the PA dividend in the future. Why people always try and make things look so bad when it fact they are very good !
Here is example of people who said how good is BRIM(Insas PA). Who has to bear the BRIM cost, why nobody mention despite this is Insas thread. Is it those buying warrant plan to convert so that Insas got money to pay PA dividend?
Insas-PA is of higher premium than mother share now, as the gap drift further, the pendulum will swing, and mother share will become more attractive, there is no limit to the gain of mother, but Insas-PA is cap at RM1.
Posted by truthseeker1 > Mar 4, 2015 03:01 PM | Report Abuse Who has to pay for Insas PA dividend? Now latest Insas EPS only 1.02sen. In future how?
Me: So because Insas earns 1.02 sen for the last quarter, it can’t pay the 4 sen dividend to preferred shareholders? It must earn 4 sen every quarter to pay that dividend? What about its EPS for the last few years? Do you see it has such a big problem paying? What about its hundreds of millions in cash and cash equivalent and investments?
Year 2011 2012 2013 2014 EPS, sen 24.1 9.14 1.84 15.0
Posted by truthseeker1 > Mar 4, 2015 03:02 PM | Report Abuse Those chasing Insas WB plan to convert their warrant is it?
Me: The beauty is warrant holders has the rights but not the obligation to convert, and they have 5 years to decide. No chance to go up to its exercise of RM1 in 5 years, any time within this 5 years? Go learn something about warrants.
Posted by truthseeker1 > Mar 4, 2015 03:04 PM | Report Abuse Those buying/holding Insas WB remember it is going to be toilet paper if they don't plan to convert at RM1.
Me:Can’t warrant holder sell them? And any time in this 5 years?
Posted by truthseeker1 > Mar 4, 2015 03:55 PM | Report Abuse Here is example of people who said how good is BRIM(Insas PA). Who has to bear the BRIM cost, why nobody mention despite this is Insas thread. Is it those buying warrant plan to convert so that Insas got money to pay PA dividend?
"There is no such thing as free lunch".
Me: Insas needs money to make acquisitions, subscribe to more of its subsidiary shares in Inari etc. Instead of borrow from banks at 5%-6% interest rate, what is wrong to give 4% to existing shareholders, while the money it has is utilized for other better investments?
A lot of explanation or information had been provided here. But naysayer will never accept it even though how good it is. Anyway the PA today already at 85.5 Btw, the PA is convertible....some sort of. In lieu of paying RM1 for the mother to convert your warrant, you can use the PA. So PA at 80-85 sen is worth to keep for the future. If within a year or so if mother moves above 1.20-1.50, use PA + WB to convert to mother. It is all depends on your trading strategy.
For those who are afraid to keep the PA or afraid that Insas bankrupt, when it does goes bankrupt, the first to get payment will be PA and no others. Read the prospectus and it is all there.
KC dead wrong ! insas earned 1,02 sen PER SHARE ! but there is only ONE PA per 5 shares ! So every 5 shares Insas has 5.2 sen income but oni have to pay out 4 sen for PA so still 1.1 sen left to pay mother shareholders. Idiots ! How can people here be so dumb ?
Market is very fair. Those with knowledge and well informed is accumulating and continue to make more profit. Those don't understand, worry etc would sell at low price and cabut. FYI, I even can get at RM0.80 yesterday, and continue to accumuate. The yield is still very attractive at RM0.855, about 8%.
Insas is a good investment and the warrants and PA are nice bonuses. something for all. you want growth buy mother, you want dividen buy PA, you want speculate buy warrant. what else you wan ? oh i know FREE MONEY ! ah ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha hey wan free money go ask hamsub sandwich.
Posted by gweilo > Mar 4, 2015 05:33 PM | Report Abuse
KC dead wrong ! insas earned 1,02 sen PER SHARE ! but there is only ONE PA per 5 shares ! So every 5 shares Insas has 5.2 sen income but oni have to pay out 4 sen for PA so still 1.1 sen left to pay mother shareholders. Idiots ! How can people here be so dumb ?
Which part of my statement is dead wrong?
Why is that 1.2 sen EPS the last quarter so important for you to split how many sen goes to PA holder and some to common shareholders in a year?
Awesomeness! The stars just aligned!! EPF emerged as Inari's substantial shareholder, good for Inari and Insas. Insas disposed Inari and will start to realize/unlock huge capital gains :)
Insas holding 29.18% of Inari. Inari at 3.26, it total values at RM679.411 mil. It is more than current market cap of Insas. What Insas will do now????? Will will you do, if you are running Insas???? This is just Insas-Inari....how about Insas-Hohup???? Do the maths....time will tell.
Ooops...latest holding is 27.82% which is at RM648mil if Inari at 3.26. Hmmm....hoiw abt gain from Inari warrant that they had?? Believe they had dispose some....seem a lot of cash coming in for Insas.
Insas a screaming BUY ! You want growth buy mother, you want dividend buy PA, you want speculate buy warrant. All three, make money. Soon Insas full of $$$$$$$$$$$$$$$$$$$$.
imoogi99 Insas oledi so very undervalue. should be triple the price now actually. sooner or later it will be RM3. It has to be or somebody will make offer for Insas. Even Thong cannot stop it so he has to raise market price or else.
Thong tengah perhati burung siapa penat dulu. Yang cuak akan tersingkir. Hanya yang berotot kental akan kekal hinggap di dahan. Burung Thong telah tahan sabar selama 10 tahun lepas, dan tak menjadi masalah besar binatang ini terusan tak buat apa2 bagi tempoh 2 tahun lagi.
Can it go to RM1.20 some day ? It already been over RM1.30 ! If I were you I would buy now because the mother, warrant and pa are all going higher. unless of course you are a short term speculator in which case maybe you should buy Sumatec at 60 sen like hamsub sandwich recommend and lose your panties ! ah ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha
I dont know why you are complaining. You buy RPS at RM1 and you get 2 free warrants. You would have gotten 50cents back and your cost for RPS is only 50cents while the RPS is still at 8x cents. You paid RM1 and get RM1.30 back but you still bitch like a woman. Cant phantom what people think nowadays. Besides Insas will redeem its RPS at full face value if you can wait 5 years.
Insas are now UNLOCKING the profits from Inari shares that they owned their cost was 40 sen ,unlocking at above RM 3.00 and netting huge profits...wonderful there are buyers like EPF who are willing to mop up the Inari at that price...u will regret later for not buying the shares of Insas with this current price!!!!!!!!!!!!!
Posted by Kian Leong Lim > Mar 6, 2015 05:02 AM | Report Abuse
"Everyone who says the preference share is a good deal is a joke! KCChongnz, I thought I can respect you after seeing how frequently you post, you are recommending this preference shares for people to buy without telling them it is risky and low return. What a joke!"
Kian Leong,
You need to learn some basics in risk and return and finance and investment to understand what I have been talking about Insas PA when it was just selling at about 80 sen.
Btw, valuation of a bond is a very simple thing to do without much uncertainty compared to equity..
when buying shares , there comes a risk attached. Pls remember , no free breakfast, lunch or dinner , it is u that make the final decision n the onus is on u , nobody else or whatever the recommendations are.
The valuation shows Insas PA value is 93.5 sen per share.
The only thing you may disagree with me is the discount rate, i, but if you consider the financial position of Insas, this "i" should not differ much and hence the intrinsic value of Insas PA.
Yes, when interest rate goes up, Insas PA loses value. But who is so sure that interest rate will go up when there is no statistical significance result to show that anyone can predict that correctly in the future?
Don't forget about the extra feature of the use of PA as RM1 cash to convert Insas W any time within this 5 years when Insas in deep in-the-money. The valuation of this "extra value" is complicated and unsuitable to discuss here.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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!
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....
oregami
1,999 posts
Posted by oregami > 2015-03-04 14:45 | Report Abuse
if RPS 95sen got ppl wan or not ar?