private placement will also dilute EPS of the company. But as long as the company keep growing using the fund from PP, it should be ok. This PP is ~15% of total shares.
the oil is a brownfield with profit guarantee and shares pledged. I guess the risk is minimum. upside is great. no major funds selling is an indication that they had weighted all risks
Private placement is at, at least Rm1.65. If the current price is Rm1.40, might as well buy from the open market if those private investors wants to own this shares. So open market price should be pushed up to more than Rm1.60 for those private investor to be interested to be placed with a lower entry cost. Am I correct? Pls comment if I misunderstood. Thx
This private placement price also come with free 2 warrants, say if the free warrant is priced at 0.15, PP owner will get 30cents for each share they own. For 1.40 + 0.30 = 1.70. The current open market price (1.40) is still consider more expensive than the PP. Of course that is the assumption that the WA price is 0.15. Until the final date and WA price is announced, the price will not be pushed to RM 1.65 for sure.
yes, that's the reason why the share price won't move as of now. Looking at the new projects and on going projects for this counter, EPS growth will certainly overwhelm the number of shares (which will dilute the EPS) once the PP listed.
Certainly so. But any idea why they are disposing their treasury shares? A lot of happenings. 1. Healthy construction and road maintainance jobs 2. De centrum project, mall, condos, hotels (buyers offering them Rm250mil ?) 3. Reviving Libyan projects 4. OnG ventures, if successful, rerating will come.
looking at the number of treasury shares disposed, the 'buyer' definately not from retail treader, I'm guessing that the same private investor(s) that going to subcribe PP bought it. Maybe the investor wanted to absorb more shares but they can't buy from open market which will shoot up the share price before PP. So, they are asking the company to off load the treasury shares. Just my thought.
To many, there seems to be a lot of mystery about whats going on. Lets hope the management handle the business well, as they are also major shareholders. If things goes well, there could be a powerful upthrust looking at what they are doing to create value. Maybe there would be another big interested party joining forces.
the reason im having this counter in my portfolio is the future earnings of this company even without the O&G business. with dividend yield >5%, no harm with long term investment but for those short term traders, they might hesitate by looking at the flat movement of the share price recently. Fair enough.
Ya rite, same reasons too here. Think for a whole year period, not bad performance. Appreciated 40%. Not easy to find too, but since Aug-Sep last year, price have stagnant, but wont be for long, looking at the revenue, PBT, EPS, all are improving and better than last FY.
Recent ventured in O&G gave some doubts to investor but general perspective is still solid. With expected dividend of at least rm0.08, At rm1.40, there expected return is 4.2% after tax. So, take this situation to accumulate some lots and hopefully Protasco will clear the sky with more project secured!
I think the price will up if Prtasco win the Court Case, else they the need to pay about RM10 mil. This is the risk and why the share price is down. Whatever the result is : In the long run, the Prtasco expects to perform better.
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Posted by wee888 > 2014-01-29 18:54 | Report Abuse
Google private placement, u will learn alot.