Conversion surely means company believe in its long term prospect. Also it will dilute mother in the short run. Question is, why convert so fast when there's 2 years to go!?
If you have free warrants, and only need to fork out RM1.65 to get a confirm trade at more than RM2.6 now, would you be holding it or selling it? Based on current and projected economy outlook.
Don't forget that Dow Jones (global market driver) is overvalued at the moment, and has been overvalued for some time already even before Covid-19.
Market over re-act on Conversion of warrant , Investor need think wise why company convert warrant to mother share. I think maybe company had better prospective instead of sell their shares after conversion.
Maybe normal investors who got free warrants don't convert as it need cash to exercise, and also a delay due to the conversion process, so instead just sell the warrants for an immediate profit.
Those who believe in the company especially the directors, converts warrants not only to sell mother at profit, but also injects cash into the company. This could be a good sign because unless they believe in the company's future, I don't think the directors themselves will fork out millions of ringgit to exercise the warrant.
Not performing because next quarter EPS is expected at 5sen only. Future PE will be 13x. At 2.60 it is fully valued. Need to drop further before going in.
i think GCB would be a good investment , perhaps at par with rubber stock. Despite the current pandemic , they have confident to expand their production which many of the company is cutting cost and sizing down.
I believe during pandemic , GCB is taking the opportunity to expand it capacity or perhaps gain more market share to be the no 1 sooner or later.
this one can hold 10 years also..... i dont see people stopping chocolates all together. now a bit slow cause of tourism , but when things go back to normal should be OK>
Sold half my holding, keep the rest for future. One thing to note for GCB is that while revenue is growing its profitability is eroding slightly, maybe competition for other coco producers.
when hartalega small, also like gcb, low profile but quietly and sincerely expanding. gcb managemt take the lead to convert wb to mother share, i hv seen other mngmt sold all thier warrant the 1st day when listing. peace of mind for long term invest and lets it multiply over time. 300% return in 5yrs is no problem.
for investmt wise, nestle only in malaysia, market limitted. whereas sky is the limit for gcb. as you said no4...already world class. how many worldclass company in malaysia yet pe at 14? yes gloves are world class but pe 150 :)). i m switching my glove counter to gcb.
longranger nope. Nestle in other country also beneficial, because nestle go make other snack beside cocoa, but one point agree is gcb are world class. Haha topglove i hold from 4.9 last year so still ok, I wish gcb will have healthy grow like topglove
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....
WKCHEK
1 posts
Posted by WKCHEK > 2020-06-09 21:32 | Report Abuse
Stevecheahsw, where u plucked this infor?
If there is such transaction, no announcement needed?