Posted by mktwatch > 2013-11-07 18:33 | Report Abuse

Hi All Aspiring Choco Millionaires,
Let me share my 2 sens' worth on the financial effects of the much talked about Proposed Capital Reduction Scheme to be proposed by the Board of our PMCorp (yes, i'm one of you n with you guys):
I think the steps involved would be as follows:-
Part 1:
1. Cancel treasury share in stock = 64,959,800 shares @ current par value of 50sen = RM32,479,900;
2. Buy-back cost of the T. shares = RM30,484,000 (per Annual Report FYE2012)set-off against step(1)value = RM1,995,900 balance, which is set-off in turn against Reserves' negative balance of RM40,939,000.
3. Write-off Reserves balance of RM38,943,100 against Share Capital.
4. Balances after steps(1) - (3): No. of share outstanding = 708,397,200 shares; Balance in Share Capital = RM315,255,000.

Part 2:
1. Assuming reducing par value per share to 25 sen from 50 sen.
2. Then, 2 shares become 1 share. Reduce NOS by 1/2 to 354,198,600 shares.
3. Share Capital is further reduced by RM88,549,650. This is the amount shareholders would be paid in cash as the 'cash payout' we've been looking forward to.
4. Balance per Share Capital after the whole exercise = RM226,705,350.

Part 3 (Financial Effects after capital reduction exercise):
1. Proj NAV/SHARE = RM0.77 (vs. RM0.44 prev yr.).
2. Proj EPS = RM0.02 (Vs. RM0.0113 prev yr.)

Notes:
1. The projected NAV is based on a projected Revenue increase of 5.5% for this FYr. And proj NPAT of 8.8% of Revenue (this is derived from the average of FYE2012 n TTM 2013 up June30, 2013). Intangible assets are excluded from this calculation, but includes the increase in cash of RM38.18M from the sale of S'pore warehouse n land.
2. The proj EPS takes into account only the proj Net Operating Profit after tax for FYr2013.

So, the good effects of the proposed exercise are:
1. Increase in NAV to 77sens. Compare this with today's closing price of 33.5sens.
2. Increase in EPS to 2 sens from 1.113 sens.
3. Reduced NOS means further increases in the EPS if Rev n Profits continue to increase.
3. This may also result in lower PE in the future years.

Hope I've been able to provide some confidence building in the light of current profit taking situation in the stock.

Posted by mikekong55 > 2013-11-07 18:59 | Report Abuse

mktwatch, thank you for the clear details.

Posted by babysohai > 2013-11-07 19:30 | Report Abuse

I had bought in @0.335.Another counter targeted tp at 0.50.go go go

Posted by mktwatch > 2013-11-07 20:03 | Report Abuse

Thanks mikekong55. I'm glad to contribute towards greater clarity of the potential of this stock.

32.5 sens seems to be a strong support because of past periods' classical resistance turned support at 32.5-33.0sens.

30 min. chart shows a bullish flag, with a TP = 39.0sens if price rebounce.

Posted by shukriechek > 2013-11-07 20:10 | Report Abuse

Tqvm mktwatch.Tomorrow will buy some.

Posted by mikekong55 > 2013-11-07 20:12 | Report Abuse

mktwatch, so the capital reduction is 0.125cents before merge 2 into one. am I correct. with your clear and details note everyone here is a sure winner. many thanks mktwatch.

Posted by izoklse > 2013-11-07 20:26 | Report Abuse

next week it will fly again

Posted by alexanderSingapore > 2013-11-07 20:33 | Report Abuse

Izoklse is so far very accurate!

Posted by skng74 > 2013-11-07 21:03 | Report Abuse

BNM kept OPR unchanged at 3%. This can be a reason for stocks to advance tomorrow.

Posted by jvei > 2013-11-07 21:19 | Report Abuse

hi mikekong55, do u look at FFHB?

Posted by mikekong55 > 2013-11-07 21:38 | Report Abuse

jvei, no. don't intend to look or buy anymore.year in year out will sell all my holding(profit/loss inclusive) first week of january without failed. always profit making. in hand still have KSENG(20k),PRKCORP(50k),PTARAS(20k),INGENCO(1000k) and PMCORP(800k). all making money and mostly bought february'13 except INGENCO sitting on paper loss RM35k. this time around might sell before X'mas for taking family for holiday. will look for new share to buy come february/march when market is the weakest period.anyway, intend to unload 0.38-0.48 before announcement for pmcorp. in stock market always follow your heart don't be greedy;this way you'll be fine come rain or shine.hopefully, pmcorp shoot-up tomorrow for europe and DJI FUTURE up to record. reason ECB cuts interest rate from 0.05 to 0.025. bursa index will fly for sure.

Posted by mktwatch > 2013-11-07 21:41 | Report Abuse

Hi mikekong55, I'm assuming that the Board of PMCORP decides to carry-out the Capital Reduction exercise in a 2 part program.
Part 1:
1. There's the 65M treasury stocks which they've been buying-back since 2006 to 2012, which they have to cancel first @ par value of 50sens/share. This works out to RM32,479,900, which is debited to Share Capital A/c, and credited to Capital Reduction a/c. At the same time, the cost of the shares bought-back as treasury shares is then transferred from T.Shares A/c to debit Cap.Reduction a/c. This amount is RM30,484,000. So, there's a credit balance of RM1,995,900 (RM32,479,900-RM30,484,000).
2. This credit bal in the Cap. Reductn A/c is then transferred to credit a Reserve A/c, so setting off the negative or debit bal in the Reserves a/c by RM1,995,900. The net bal of RM38,943,100 (Dr.) is then w/off against Share Capital a/c.
3. Bal of shares oustanding is then = 708,397,200 shares.

Part 2:
1. After Part 1 is carried out, Part 2 can then proceed. I am assuming the Board decides to reduce the par value per share from 50sen to 25sen.
2. This means a cancellation of 25sen/share, which would require cancellation of 1/2 of NOS outstding, ie 354,198,600 shares.
3. Total amount to be cancelled from Share Capital a/c = 354,198,600 x 25sens = RM88,549,650. This is the amount we can expect to receive as Cash Payout if the Capital Reduction exercise is proposed by the Board and all relevant approvals are obtained in EGM, from bursa, etc.
4. Bal in Share Capital a/c after the whole scheme is concluded = RM226,705,350 (or 64sens/share based just on share capital bal.)

Posted by mikekong55 > 2013-11-07 21:41 | Report Abuse

ECB stands for EUROPEAN CENTRAL: BANK.

Posted by chia88 > 2013-11-07 21:53 | Report Abuse

Limit up tomorrow?

Posted by mikekong55 > 2013-11-07 22:01 | Report Abuse

mktwatch, the whole exercise take 3 months to complete if there is capital reduction. normally when I trade in share I don't pay to much attention to the dividend. is the share price appreciation that matter most.anyway thank for explanation and there should be more people of your type in this forum. your thought and willingness to share your views is greatly appreciated by all the pmcorp forumer. on behalf of them would like to once again says a BIG thank you.

Posted by AyamTua > 2013-11-07 23:10 | Report Abuse

mikekong55 jvei, no. don't intend to look or buy anymore.year in year out will sell all my holding(profit/loss inclusive) first week of january without failed. always profit making. in hand still have KSENG(20k),PRKCORP(50k),PTARAS(20k),INGENCO(1000k) and PMCORP(800k). all making money and mostly bought february'13 except INGENCO sitting on paper loss RM35k. this time around might sell before X'mas for taking family for holiday. will look for new share to buy come february/march when market is the weakest period.anyway, intend to unload 0.38-0.48 before announcement for pmcorp. in stock market always follow your heart don't be greedy;this way you'll be fine come rain or shine.hopefully, pmcorp shoot-up tomorrow for europe and DJI FUTURE up to record. reason ECB cuts interest rate from 0.05 to 0.025. bursa index will fly for sure.

07/11/2013 21:38

- Brother .. do hold some PMCorp (on profit) for me and us all here if you intend to unload all by January to prove my theory that Tudor can reach 50c and $1.... hahahahah .. for yamyam tree! thanks

Posted by AyamTua > 2013-11-07 23:14 | Report Abuse

Posted by mktwatch > Nov 7, 2013 06:33 PM | Report Abuse

Hi All Aspiring Choco Millionaires,
Let me share my 2 sens' worth on the financial effects of the much talked about Proposed Capital Reduction Scheme to be proposed by the Board of our PMCorp (yes, i'm one of you n with you guys):
I think the steps involved would be as follows:-
Part 1:
1. Cancel treasury share in stock = 64,959,800 shares @ current par value of 50sen = RM32,479,900;
2. Buy-back cost of the T. shares = RM30,484,000 (per Annual Report FYE2012)set-off against step(1)value = RM1,995,900 balance, which is set-off in turn against Reserves' negative balance of RM40,939,000.
3. Write-off Reserves balance of RM38,943,100 against Share Capital.
4. Balances after steps(1) - (3): No. of share outstanding = 708,397,200 shares; Balance in Share Capital = RM315,255,000.

Part 2:
1. Assuming reducing par value per share to 25 sen from 50 sen.
2. Then, 2 shares become 1 share. Reduce NOS by 1/2 to 354,198,600 shares.
3. Share Capital is further reduced by RM88,549,650. This is the amount shareholders would be paid in cash as the 'cash payout' we've been looking forward to.
4. Balance per Share Capital after the whole exercise = RM226,705,350.

Part 3 (Financial Effects after capital reduction exercise):
1. Proj NAV/SHARE = RM0.77 (vs. RM0.44 prev yr.).
2. Proj EPS = RM0.02 (Vs. RM0.0113 prev yr.)

Notes:
1. The projected NAV is based on a projected Revenue increase of 5.5% for this FYr. And proj NPAT of 8.8% of Revenue (this is derived from the average of FYE2012 n TTM 2013 up June30, 2013). Intangible assets are excluded from this calculation, but includes the increase in cash of RM38.18M from the sale of S'pore warehouse n land.
2. The proj EPS takes into account only the proj Net Operating Profit after tax for FYr2013.

So, the good effects of the proposed exercise are:
1. Increase in NAV to 77sens. Compare this with today's closing price of 33.5sens.
2. Increase in EPS to 2 sens from 1.113 sens.
3. Reduced NOS means further increases in the EPS if Rev n Profits continue to increase.
3. This may also result in lower PE in the future years.

Hope I've been able to provide some confidence building in the light of current profit taking situation in the stock.

--- who are you maybe, brother ... thank you and may you be blessed always for us all here for this clarification ... thank you, thank you!

Posted by ppginvest > 2013-11-07 23:21 | Report Abuse

mikekong55, 800k shares or shares invested amount 800k?

Posted by thor88 > 2013-11-08 05:10 | Report Abuse

today US drop....can pick at cheap on this morning

Posted by mikekong55 > 2013-11-08 05:19 | Report Abuse

ppginvest,800k of shares. thor88,hope you can get cheap..

Posted by thor88 > 2013-11-08 05:22 | Report Abuse

mikekong55, hope so..yesterday too earlier to pick up on 340, how u analysis these 2 days performance after shoot up on monday?

Posted by Superman88 > 2013-11-08 05:38 | Report Abuse

very attractive price in these 2 days..buy before regret

Posted by nokenzo > 2013-11-08 05:49 | Report Abuse

Healthy correction before the next barrier of 40sen.

Posted by mikekong55 > 2013-11-08 06:30 | Report Abuse

thor88,for the week it's still up 0.045 from last friday closed.from my point of view there won't be any force sell coming tuesday on the 3500k+ done @ 0.35 this wednesday. likely scenario these trader might have short sell the market whereby have already covered their trade the very same day. on another view,this counter might have been cornered since very limited share available in open market(around 4%). very hard to bottom fish. have to pick high and sell higher. look like price will close positive today in preparation for another surge coming week before Q3 announcement. the way I look at it, this stock will not surge another high on good corporate announcement for it's being factor into the price now.expected EPS this quarter 0.031cents. if capped @ 13x-15x price should stay around 0.40-0.48. this is my own opinion,buy/sell solely you own decision.

Posted by thor88 > 2013-11-08 06:44 | Report Abuse

mikekong55, thanks for your analysis..today i will pick up TAFI on this morning..

Posted by AyamTua > 2013-11-08 07:34 | Report Abuse

Tudorians- bid thee success!

Posted by anthonylow > 2013-11-08 08:12 | Report Abuse

today try to get 0.32,hihi.

Posted by mikekong55 > 2013-11-08 08:52 | Report Abuse

if I am right this share price will shoot new high today. bulldozer all stand by already

Posted by ksng0307 > 2013-11-08 08:54 | Report Abuse

but us down mike, what do u think

Posted by vinvin > 2013-11-08 08:56 | Report Abuse

Let it be................high, high, high....................

Posted by mikekong55 > 2013-11-08 08:58 | Report Abuse

no effect on this counter. will stay positive today.

Posted by ksng0307 > 2013-11-08 08:59 | Report Abuse

good

Posted by albertng > 2013-11-08 08:59 | Report Abuse

Is possible today can hit new record.........

Posted by chia88 > 2013-11-08 09:01 | Report Abuse

Lot of buyers line up. High record high today.

Posted by messibarca > 2013-11-08 09:17 | Report Abuse

very quiet ..

Posted by 林俊松 > 2013-11-08 09:18 | Report Abuse

Sorry, AyamTua & Mikekong. But, this PM Corp fast fall to 33 cents please!!! I'm queuing to get 150 lots!!! Those profit taker faster sell lah!!!

Posted by mikekong55 > 2013-11-08 09:25 | Report Abuse

everyone up this chocolate bullet train. set to take off soon. hopefully new high on the way.

Posted by mikekong55 > 2013-11-08 09:31 | Report Abuse

LIM,today no classes? later you'll have to queue 0.35 to buy.haha

Posted by 林俊松 > 2013-11-08 09:39 | Report Abuse

Brunei no work on Friday, but have to work on Saturday. Muslim country. I'm still queuing at 33 cents since yesterday, no choice that I have limited amount of fund. =(

Posted by Vincent Than > 2013-11-08 09:42 | Report Abuse

Heavy seller at 0.35 =,= they macam dunwan let the price fly only..

Posted by ivchoong > 2013-11-08 09:50 | Report Abuse

LIM- I queue @ .335 also cannot get yet! 0.33 Will be very hard to get.

Posted by vinvin > 2013-11-08 09:50 | Report Abuse

Still losing coffee money Rm120-00 not so much now!

Posted by mikekong55 > 2013-11-08 09:53 | Report Abuse

0.35 will be clear later. just watch the show.AYAMTUA, where are you? still sleeping under yamyam tree.go for new high today,please wake-up.

Posted by pop8872 > 2013-11-08 10:04 | Report Abuse

ding dong ding dong at 0.34 &0.345

Posted by ladzatz > 2013-11-08 10:10 | Report Abuse

better buy TA...another hwangdbs in the making

i just want to give my thought:

TA is rich cash company...no.2 its investment banking will be targeted for takeover...no3 the directors are buying...no. 4 the nta is more than twice the current price...no5 the property divison is doing excellent....no6 it has been in up mode till now...the TA/chart is good...just wait for funds to accumulate also

Posted by AyamTua > 2013-11-08 10:17 | Report Abuse

mikekong55 0.35 will be clear later. just watch the show.AYAMTUA, where are you? still sleeping under yamyam tree.go for new high today,please wake-up.

- who summons me? ah! dearest guru master cum sifu MikeKong55: yes, I am here .. you're prediction potentially around 80%-20% correct .. higher percetange according to AyamTua magic balls! but .. why worries? This chocolate stock potentially beats Cadbury one day as the world largest choco maker with the right RECIPE FOR SUCCESS ! so whatever price now doesnt really reflect it true potential! KEEP THE FAITH .. We all investors should be proud we're part of HISTORY IN MAKING ! GO TUDOR.

Posted by messibarca > 2013-11-08 10:24 | Report Abuse

total 3kk need to clear to break 355c

Posted by AyamTua > 2013-11-08 10:33 | Report Abuse

Naturally by recommending Tudor Gold, Tango and Crispy to your friends and family = sales up in supermarket = stock price up without asking people to join this choco boat .. :-)

my 2cent the only way for share price to up naturally.. hahahahha.. ask your uncle, aunty, dad and mum TO BUY Tudor Gold, Tango and Crispy for Christmas, Hari Raya, Deepavali, etc etc including Valentine Day!

Posted by AyamTua > 2013-11-08 10:35 | Report Abuse

Tudor Gold, Tango and Crispy ... The No.1 chocolate in the world !!!!

Posted by AyamTua > 2013-11-08 10:38 | Report Abuse

To all fellow investor in Tudor Gold, Crispy and Tango - buy and support YOUR OWN PRODUCTS! recommends to your friends and family = share price up naturally ...... :-)