@AlfI3 You're welcome. I believe smart farming is the right way to go and the company seems to have assembled a team, so I participated :) Suddenly, the Chin KF shock came. Yes, I am relieved he is NOT Director of ANNUM.
Also, from NST: "Nadia granted bail at RM3,500 and fixed March 21 for case mention." If it is a serious crime, then isn't 3500 too small a bail? It also did not mention surety or have to hand over passport.
The maximum scenario applies now, but even after all the warrants are converted, the NA per share is 60sen. Furthermore, in the last couple of years it is a profitable company. So what should be the fair price now? I don't think is as low as 25 sens, especially we paid 30 sens for a right share. Personally. won't think of selling if less then 40sens. Happy trading!
To me the current warrant price and the quite long queue at 6.5 sen mean the current mother price is not justifiably low. Why ppl pay 7sen for warrants if the mother won't be at least 35 sens in 2 years time when expiring?
The result is: Title: Nanyang - Warrants Column / Wen Shilin Entering the Intelligent Agriculture Industry, ANNUM and Its Warrants Deserve Attention / Wen Shilin
ANNUM-WA, a warrant issued by ANNUM (5082, Main Board Industrial Stock), was listed on Bursa Malaysia last Tuesday. The warrant was part of ANNUM's recently completed additional share issuance plan, and was distributed free of charge to subscribers at a ratio of 3 warrants for every 4 shares subscribed, with a total of 97.5 million units issued.
It is worth noting that the subscription rate for this additional share issuance plan was not high due to the issue price of 30 cents being higher than the market price. However, some investors made up for this by subscribing for additional shares, enabling the company to achieve its target fundraising.
After its listing, ANNUM-WA traded between 6.5 cents and 8 cents, and closed at 8 cents last Friday. ANNUM's mother stock has been on a downward trend for the past year, falling from a high of about 85 cents to 24.5 cents last Friday.
Formerly known as New Hoong Fatt Holdings, ANNUM is engaged in the plywood and construction businesses. However, the group has entered the intelligent agriculture industry through this corporate activity, mainly by cultivating Japanese melons through the additional share issuance plan.
For the first three quarters ending on September 30, 2022, ANNUM's revenue increased significantly by 40% from RM167.16 million in the first three quarters of 2021 to RM234.20 million. The company's net profit, however, decreased by 48% to RM22.68 million.
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Bullish on the Future of Fruit and Vegetable Farming
According to the company's financial report, the increase in revenue mainly came from the company's wholesale business. However, due to a one-time negative goodwill gain of MYR 20.69 million in 2021, the profit for 2022 appears to have decreased significantly.
Based on its positive outlook for the future of fruit and vegetable farming in Malaysia, the company has decided to enter this industry and expects the new business to contribute at least 25% of its net profit.
The premium for ANNUM-WA is currently at 55.1%, which is relatively high for a warrant that will expire in two years. The warrant is also considered expensive due to its higher implied volatility compared to the historical volatility of the underlying stock.
Due to the significant drop in ANNUM's share price from its high, as well as the appearance of new significant shareholders after the issuance of the additional shares, there is a greater possibility of a rebound at a lower level, leading to support from investors for ANNUM-WA, which has a lower entry cost.
Disclosure: The author of this article holds shares in the company mentioned.
This article is purely for academic or experiential advice, and readers who are interested in investing should conduct their own research or seek advice from a stockbroker before making a decision. Investment involves risk, and we encourage the creation of wealth through correct investment methods.
Just a gentle reminder on the schedule: Smart Farming Business is to start in 3rd Quarter this year. Currently, the company should be busy getting ready for the launch, such as engaging external service provider for the IoT system, building up to 19 green houses, and getting the relevant licenses. Prospectus said: "....our Management expects the Smart Farming Business to generate revenue and profits to our Group by 4th quarter of calendar year 2023." So will be exciting to see the result in less than a year!
Annum Bhd has hit the lowest price it has traded for over the last year (52 week period). This is a technical indicator that can be used to analyze the stock's current value and predict future price movement.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by Peace99 > 2023-02-15 11:55 | Report Abuse
And he ceased as Substantial Shareholder as of March 2022: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3245425