We have a very good earnings confirmation from Inari last night. Would that be enough to convince the institutions to enter the market. Insas has about 51% float and 300 million shares for public trading. So far volume less than 10 million. Can it break the 10 million mark..?
Way back in November when Insas announced its 1st QR EPS of 8 sen, the share price eventually crashed to 68 sen when I managed to buy my 4th tranche of Insas shares, that was the last time I bought. Since then have been accumulating only the warrants.
Haha! Thecon, not crash lah! The market was bullish at the opening following the announcement and market opened gap up, at the resistance price of 75sen, gap up, then the selling was overwhelming and finally drifted to 68sen on T+4 subsequently.....The overall market was bad the last November... :)
Ya, Insas drifted down to 68 sen in November about a week after QR. That day ringgit/dollar crashed beyond 4.4 and was approaching 4.5. Six months later today ringgit/dollar still stuck at around 4.3.
If INARI every quarter pay 2.2sen dividend per share, in essence insas get 1.335sen per Insas share from Inari. Insas just get the dividends from Inari and pay to shareholders of Insas and still has surplus if she only pays 1sen dividend per quarter! LOL!!!
Inari share price has appreciated 38 cts from RM1.66 on 30/12/2016 to RM2.04 on 31/3/2017. This should give enormous 'net fair value gain' to Insas similar to OSKVI.
No fair value gains/losses caused by changes in share prices of listed associate companies of Inari , hohup and omesti be reported in P&L but sharing of their operating profits as " share of profits less losses of associate companies ". Investment in these associates only reported in FIXED ASSETS as "Associate Companies". As of 31.12.16 it is RM273,765, 000
The "Fnancial assets through profit and loss" as reported under CURRENT ASSET of RM334million, as of 31.12.16, are short term investments in quoted securities in Malaysia and overseas. The changes in fair values of this investment will be reported as " Gain/Loss in fair value changes of financial assets through profit or loss" in "Other Income" or "Other Operating Expenses"in the P&L account....
What Skliew is saying is there's no mark to market for listed associated companies. Inari shares in the accounts of Insas is stated at around 55 sen per share. The difference of RM2.15 market value over 56 sen per Inari share is NOT recognized in the accounts unless disposed of.
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Skliew
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Posted by Skliew > 2017-05-16 23:59 | Report Abuse
INSAS though only owns 20.7% of INARI, is the controlling major shareholder