GCB good. GCB-WA even better due to its multiplier effect due to high gearing x3 .Currently undervalued. Still trading at an unusual discount recently. Normally trades at premium. (mothershare price - exercise price) = warrant value RM2.78 - RM1.65 = RM1.13
As long as the new European company doesn’t give a bad surprise, I think QR shud be 60-70mil. I hope they will give a big fat divi too. Just my thoughts.
yes, but there have risk to convert warrant into share and credit into your account take 14 days.. not sure the mother share can remain price + 20% or not on that time.
price of mother share = price of warrants + conversion premium + time premium. Current situation is beneficial to holders of Mother share. just sell mother share and buy warrant simultaneously. with the extra sale proceeds to pay RM1.65. current difference of 22 sen is the profit.
It seems to me GCB need extra cash for operation. Other than bank borrowings, options like rights isssue and privare placement are available with new shares to be issued below market price. Inducing existing shareholders to sell mother share to exchange warrant for converdion is a source of fund raising. The reward of 22 sen or more is justifiable
Gcb-WB is definitely a safe bet. For one the premium is low, if warrant price go up u can consider take profit, if price go down can consider convert to mother share. Plus the price usually follows the mother tightly
Well if the next Q can get 55mil (grinding) 15 mil ( schokinag) = 70 mil. With a PE of 12, easily 3.3. Market should be forward looking. Give 1-2Q more. Eventually the grinding
@simctgal I believe that too, just being conservative to make up 65-70mil per Q. Schokinag and grinding will replace the disposal gain in coming Q. Just my opinion.
If during a pandemic this counter can perform. Why sell now? Seems like a keeper for a while now and high chances will be the case for the future. People are eating more chocolate during lockdown.
DBT done on 20 and 21 May 2020 with total value 680 million = 22% of total share. Who taken of this bulk shares ? got story behind oh..... stay tune.!!!
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Posted by shawnlim > 2020-05-20 09:59 | Report Abuse
awong3632. i guess this week. last year is 28 May