Posted by 66666 > 2018-12-12 05:27 | Report Abuse

Loss QR, RI coming why up?

Posted by ramada > 2018-12-12 17:35 | Report Abuse

Wrong timing, rights issue comes.
http://malaysiastock.biz/Company-Announcement.aspx?id=1106936

Posted by commonsense > 2018-12-13 15:50 | Report Abuse

The corporate exercises are a bit confusing. For those that are interested in investing in the company you need to prepare additional money for your subscription to the RCULS and the Right Issues of ordinary shares. If you decide not to subscribe, you will face potential big dilution post the new shares listing.

Assuming you buy 10 lots (1,000 shares) @ 85sen. Your original total cost is RM850.

In order to not be diluted, your are advice to subscribe to both the RCULS and Right issue of
ordinary shares.

Based on 1,000 share, you need to prepare an additional RM300 for your 300 RCULS that you are entitled to (still ok because the RCUL pays 5% interest every year). In addition you would get 150 free shares and another 150 free warrants.

Then you need to prepare another RM200 for the right issue of ordinary shares where you will get 400 shares (RM200/ 50sen ) plus another 100 bonus shares and another 100 warrant.

All in all, if you want to buy 10 lot of MFLOUR shares, you would need to prepare RM 1,350 instead of just RM850. In the end you will get 300 RCULS, 250 warrants and 1,650 shares.

Calculation for the share price post adjustment are:
Total cost for the 1,650 shares are RM850 + RM200 =RM1,050. The RM300 is not included here because that is actually the cost for 300 RCULS.
Share price post adjustment = RM1,050/ 1,650 = 63.5 sens.

If you decide not to subscribe, you will end up losing 21.5 sens post price adjustment which will be a loss of 21.5sen x 1,000 shares = RM215 or 25% of your initial investment. You would also lose out on the opportunity to get 250 tradable warrants.

If you are interested in investing in the company, i would advice you to buy at least 20 lots or 2,000 shares. If you want to buy more than that make sure that you are buying based on blocks of 20 lots (meaning 20, 40 , 60 lots etc). This is in order to prevent having odd lots numbers of shares and warrants later which is difficult to trade.

Feel free to correct me if i had made any error in calculation. I did this for a friend who was interested in the company.

If you are looking to diversify your portfolio outside of commodity based business (due to the current volatility of commodity prices), i would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.8x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions.

Good luck.

Posted by dompeilee > 2018-12-13 16:16 | Report Abuse

All those AGM vultures who buy shares to collect their cheap bag of flour now find the flour cannot compensate for their losses.

Posted by trulyinvest > 2018-12-13 16:19 | Report Abuse

wa mintak duit lagi ka? sell

Posted by 4444 > 2018-12-13 16:30 | Report Abuse

RI 50 sen why pay 80 sen? Buy RI cheaper.

Posted by Money122 > 2018-12-14 01:10 | Report Abuse

If we not subscribe for the RCULS n right issue,we lose 25%of our ordinary share?

Posted by lex1999 > 2018-12-14 01:10 |

Post removed.Why?

Posted by villa1668 > 2018-12-14 07:25 | Report Abuse

As long as government still control the flour price, how you expect the company make a huge profit?

Posted by dompeilee > 2018-12-14 10:25 | Report Abuse

Finally, the market recognises what I'm been asserting all along - this is an OVERINDEBTED co.!

DOWN 50% in the last 6 months ahead of it begging for $$$ !

Posted by dompeilee > 2018-12-14 10:27 | Report Abuse

Ex-date on X'mas eve...Merrrrrryyyyy Christmas, gamblers/AGM grabbers !!! https://www.youtube.com/watch?v=MDhIgVy6V7Y

Posted by jolow > 2018-12-14 10:29 | Report Abuse

Too much chicken killing.
Share price also kena slaughter.
Dont earn money from this type of counter. Bad karma

Posted by michaelwong > 2018-12-14 10:34 | Report Abuse

B4 ex-date start diluting and dropping. What the heck ?

Posted by longinvest > 2018-12-14 11:34 | Report Abuse

Careful...they may purposely press it down to fish bottom...

Posted by ramada > 2018-12-14 15:34 | Report Abuse

Market sentiment is bad, they should cancel the rights issue, but they didn't.

Posted by iphone4 > 2018-12-14 16:27 | Report Abuse

@commonsense If v choose to convert the RCULS within the 5 years period, v can get another 600 shares. So, effective cost of investment RM1350/2250 = RM0.60 per share excl 250 war

Posted by signalmw > 2018-12-14 16:32 | Report Abuse

马华stock?

Posted by dompeilee > 2018-12-14 18:42 | Report Abuse

Got out of MFlour a little early...in Aug 2016, but no regrets now!

https://4.bp.blogspot.com/-foBkFWLru1U/XBOIZAC3ACI/AAAAAAAADNA/Tq4uahylxhYHYcd-I0gEb16FWSihnb-GwCLcBGAs/s1600/MFlour%2Bsale%2B16%2BAug%2B18.png

Posted by commonsense > 2018-12-14 21:32 | Report Abuse

Hi iphone4,

You are right to point out that the RCULS can be convertible anytime within the 5 years. But for the calculation of the share price post adjustment, unless there are investors wanting to convert the RCULS at the same time as the listing of the new shares, the price adjustment for conversion will actually be done later. And given that the RCULS provide you with a 5% yield (meaning 5 sens per year) it would be advisable for you to convert the RCULS at the end of the maturity or if for whatever reason the company decides to give a big dividend payout (special dividend for example).

I'll try to give an example.

Using Friday closing price of 71 sens (different from my original example of 85 sens yesterday) . Total initial cost for 10 lots or 1,000 shares is RM710. Same as the previous example given, you will need to prepare another RM300 for subscription of RCULS and another RM200 for right issues of shares. In the end (after both subscription) you will end up with 300 RCULS, 250 warrants and 1,650 ordinary share.

Upon the listing of the new shares, the price will adjust. Calculation:

Price per share post adjustment = RM910/ 1,650 shares = RM 0.55 (after rounding).

Let say after 5 years the price remain at RM0.55 and you have yet to sell or buy any new share (you still have the 1,650 shares) and the numbers of total share outstanding is the same and all RCULS holders decides to convert their RCULS to normal shares. Each RCULS is entitle to 2 new shares at 50sens per share (you don't actually need to fork out any money. Just that the original RM300 that you paid earlier is now being used to pay for the new shares). After conversion you will have an additional 600 new share.

Your total of shares = 1,650 + 600 =2,250 shares

Your cost of the shares = price of your 1,650 share pre listing of new shares + RM 300 (for the new 600 shares) = (55 sens x 1,650) + 300 = RM1210

Price of new shares post adjustment (after conversion of RCULS) = RM1,210/2,250 = RM0.535.

But the adjustment to RM0.535 will most likely only happen in 5 years time hence that is when you actually used the 600 new shares (from conversion of RCULS) and the cost or RM300 in your calculation. It is not to be used now ( when the initial first round of new shares will be listed).

Sorry for the long post. Hope you understand it. Feel free to correct me if there is any mistake in calculation.

Good luck.

Posted by michaelwong > 2018-12-14 22:34 | Report Abuse

Commonsense , your explanation is very helpful bcos of its complications , but your calculations assuming costs for 10 lots or 10000 shares at 0.71 should be ( 710 X 10 ) =7100.00 not 710.00 which means you have to fork out RM3000 instead of RM 300 , am I right ?

Posted by shpg22 > 2018-12-14 22:45 | Report Abuse

Forget about this stock...waste of time

Posted by jolow > 2018-12-14 22:47 | Report Abuse

right issue and take your money to waste.
they would not recover one. Slow death.
Just cut loss.

Posted by commonsense > 2018-12-15 06:22 | Report Abuse

Hi michaelwong,

1 lot in bursa is 100 shares. So 10 lots is 1,000 shares.

But if you were to use 10,000 shares, then you just need to multiply every thing in my calculation by 10. But in the end the adjusted price will still be the same.

Good luck.

Posted by villa1668 > 2018-12-15 17:18 | Report Abuse

Mflour brand is better than other brands...but it doesn’t mean i will invest in this company.

Posted by anticonman > 2018-12-15 17:31 | Report Abuse

Why need RI? Conman ctr is true.

Posted by jolow > 2018-12-15 22:30 | Report Abuse

This counter only worth 30 cents.

Posted by jolow > 2018-12-17 21:17 | Report Abuse

Bad company... poor management
Outdated industry
No future

Posted by trulyinvest > 2018-12-17 21:43 | Report Abuse

Wa many soehead got caught

Posted by shpg22 > 2018-12-18 12:08 | Report Abuse

Downgrade MFLOUR to 0.35

Posted by michaelwong > 2018-12-18 15:48 | Report Abuse

If continued to drop b4 reaching the ex-date of 25/12/18 , who would willing to subscribe for those rubbish stuffs ? This lousy company is going to hang up by the time if the management not willing to push up the share price and it was so untimely that the date fixed up for subscription that the world market tumbling down . The subscription will eventually turned out to be used as toilet paper in the end if nothing is done within this few days l supposed.

Posted by michaelwong > 2018-12-18 17:04 | Report Abuse

By 2morrow if the management wanted the subscription to be done and the sum to be utilised for saving the company financial distressed , by hook or by crook's they must find ways to pump up the price or to be remain as toilet waste papers . Just look how N2N last minute perform the magic show!

Posted by ramada > 2018-12-18 17:07 | Report Abuse

From RM1.00 to RM0.60, just in two weeks. I must say, wrong timing for the subscription of rights issue.

Posted by TakeProfits > 2018-12-18 18:45 | Report Abuse

Lousy,stock d. Don't waste time this one. Management is not the best. Manage can fork out money from their pockets for rights issue. Kikiki...

Posted by commonsense > 2018-12-19 10:43 | Report Abuse

Wow. From my first post explaining the corporate exercise calculation (13 dec) the share has drop by almost 30%. I had used 85 sens in my first example.

I think investors need to understand that a right issue (for RCULS or ordinary shares) does not always mean its a bad thing. To say its bad or good you need to understand where the money of the capital raising will be used later. If the projects is expected to provide good returns which will increase the profit for the company, it might actually be a good thing for the subscribers.

I am not an investor of the company. I am just worried that some investors might just be disposing their shares without understanding the overall situation of the right issue. Better take some time to read the circular.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5938429

Please take note that the ratio for the right issue of ordinary shares has change. And all the calculation in the circular are just examples. U need to redo it on your own later. Refer to my calculation explanation on the 13th dec.

Good luck.

Posted by Jaya > 2018-12-19 10:58 | Report Abuse

Sell this shit please

Posted by dompeilee > 2018-12-19 19:18 | Report Abuse

Even big holders don't wanna pay $ to subscribe for rights issues! From 50+ c premium to 8 c premium with just TWO sessions to go !

Posted by michaelwong > 2018-12-19 19:50 | Report Abuse

This company inorder to raise funds to support the company shortfalls can't even fork out some financial assistance to bring the market upwards . Waiting for those subscription to end up like toilet paper .

Posted by antidebt > 2018-12-19 20:49 | Report Abuse

They use to slaughter chicken.
Now they slaughter all the minority shareholder

Posted by TakeProfits > 2018-12-20 11:46 | Report Abuse

Screwed up company. Management need to wake up!! How much the Directors bleeding the company ?

Posted by TakeProfits > 2018-12-20 11:50 | Report Abuse

Common sense , who are you please....If you are insider., please wakey up the management....cut and reduce directors fees....No more freebies....have tap water from office....kimikiki..kikiki

Posted by dompeilee > 2018-12-21 09:41 | Report Abuse

Kucing kurap shareholders paying for a very EXPENSIVE bag of flour given during AGMs LOL!

Posted by shpg22 > 2018-12-24 14:25 | Report Abuse

Syukurlah still long way from 0.005. Support the boss to make the company great again. Everyday ppl need to eat flour, no worry.

Posted by shpg22 > 2018-12-26 12:40 | Report Abuse

So quiet..no more ikan bilis hoo-haa like last time when the price at 2.00.

Posted by TakeProfits > 2018-12-26 16:55 | Report Abuse

Wei, shpg 22, why should we support the management. They are not the best and are not wedding shareholder value. Sell this blede stock. Support yourself and buy other good stocks. How many more years you have to wait for it to perform again...

Posted by TakeProfits > 2018-12-26 17:54 | Report Abuse

Hey COMMONSENSE, CAN YOU HAVE A LOOK AT HUME AND DO A SIMILAR ANALYSIS ON HUME PROPOSED RIGHTS ISSUE. THANK YOU..AND POST IT AT HUME i3 . Thank you..Very much

Posted by dompeilee > 2018-12-28 09:44 | Report Abuse

BELOW rights issue price!

Posted by CharlesT > 2018-12-28 09:51 | Report Abuse

Whoever bought LR at 0.01+RM1.00=RM1.01 can get 1LA + 0.5B+0.5WA....

Weird leh

Posted by CharlesT > 2018-12-28 09:54 | Report Abuse

Assuming LA(5% coupon rate) opens at 0.90 n mother at 0.50 n WA at 0.10
= 0.90+0.25+0.05=Rm1.20....

Or worst comes to worst LA opens at 0.80+mother at 0.40 n Wa at 0.10= 0.80+0.20+0.05= Rm1.05

Posted by Woolei > 2018-12-28 14:42 | Report Abuse

http://www.sinchew.com.my/node/1825568/%E9%A9%AC%E9%9D%A2%E7%B2%89%E5%8E%82340%E4%B8%87%E5%A2%9E%E6%8C%81dindings

Buy 100% of DINDING

Posted by hhc8 > 2018-12-28 15:52 | Report Abuse

CharlesT. Meaning the worst case scenario still make money? Do you mind sharing your assumption?