Selling treasury share again........ I seldom see a counter where management buy/sell treasury share so often.... A greedy management..... my interpretation
Management selling all the Treasury shares prior to bonus issue. The profit from the sales is put into 'retained earnings' which will be utilised for the bonus issue. If the treasury shares are not sold, it shall be cancelled, and the number of shares will reduce, thus defeating the whole purpose of a bonus issue.
Engtex declares dividend once a year, in the month of April. With the profits utilised for the bonus issue, more reason why no dividend is not expected for this qtr.
Bonus issue is a reclassification of reserves (ie from retained profits to share capital). It does not really affect dividend policy. Key consideration affecting dividend is cashflow and capex requirements of the company.
i think is due to a few reason 1) poor market sentiment, many prefer cash out and side monitoring 2) instead of invest in good counter, many prefer put warrant which is high risk 3) Ppl prefer other cheap counter that is they think will be technical rebound soon (But don't forget, great mind think alike...)
Market r wrong nw...Man, i wish i hav cash to top up summore!!! Donno whether the company got action to defend the price or good news to announce to push up the price.
By the way, it is good also for those who hav no faith in the company to sold all out~ Next week can maintain the price rather than selling cheaper than ever~
ENGTEX: Beneficiary of water pipes replacement ----Opportunity in market selldown after 1:2 bonus issue ex on 5 Dec 14. ENGTEX share prices corrected 32% from a 52-week high of RM1.47 (Apr 2014) to a low of RM1.00 (15 Dec) before ending at RM1.07 on 5 Feb. At RM1.07, ENGTEX is grossly undervalued at trailing P/E multiple of 5.9x, about 52% discount to its peers .
HLIB Researh ---Patience will be rewarded. The amicable solution to the water impasse in Selangor State (which is expected by 1H15) could be a re-rating catalyst to ENGTEX, given that the long overdue cement asbestos pipes replacement for over 6000km in Klang Valley. This, together with over 40,000km of aged cement asbestos pipes in Malaysia would provide strong growth potential to ENGTEX earnings in the medium to long term amid Federal and Selangor governments ’renewed non-revenue water (NRW) reduction drive.
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