Hi geary. Kindly share with us your thoughts as to why RHB Investment Bank Bhd is providing funds to the substantial shareholders to subscribe for the rights.
RHB is merely the adviser for the transaction i.e. advising on the rights issue and procuring the necessary approvals from authorities. It doesn't seem that the Bank is financing the promoters on the rights issue nor it is acting as the underwriter on the rights issue to the company.
Let just hope that there is genuine need for the company to raise the cash for its "perceived" expansion. I hear that the Banks in China is tightening on credit to smaller companies which could drive such companies to raise equity to fund expansion. Anyway, seems odd that there is such a need for company to expand capex aggressively given that their sales (in RM) is fast declining albeit the appreciation of the RM.
As per Page 58 of the circular to shareholders dated 14 January 2016 RHB Investment Bank Bhd has extended a credit facility amounting to HKD50 million (RM28million) to the Tai Zhen Xiang Holding Ltd for the purpose of subscribing for its entitlement undertaking.
actually i believe its the mentality of the chinese owners in china itself.
1) dun give shit about enhancing shareholders return...becoz majority of xinquan owned by only 1 fella. 2) maybe the huge cash reserves are for ease of siphoning out anytime for own use.... 3) they are in china u cant do anything about it in msia..sue them? how? 4) just dun care about the share price....why care? got loads of cash to use ma...who cares my stock price in some far away land drop like hell
I believe china ppl's mentality is like this. almost all of china listed companies in msia stock prices drop like mad...no logic
I would stay away from china companies. buy at your own risk
914601117 & i4investor : Hi friend . Do you know why today xinquan open at 3.7 ? Yesterday closing is 0.4 right. Why today claim -0.02 ? If yesterday closing price is 0.4today should minus 0.06 not 0.02 Why it use closing price as 3.65 instead of 0.04 ? Please tell me as I lost a lot of money in this counter, crying now .
I appreciate your help . Please let me know what happened for the closing price ?
yesterday 2 share = 80 sen, Today x-date ... u need to pay 30 sen for 1 new share for every 2 share u own ... so, 3 share = 40 sen + 40 sen + 30 sen (new share) = RM 1.10 for 3 shares therefore each share adjusted to RM 1.10 / 3 = 37 sen lor. Dun worri ... your remissier will start phoning u to pay up the 30 sen for every 2 shares u own. Or ... u better start phoning him instead.
Leno. Thanks for your explanation. I understand all . You very helpful Thanks a lot. Actually I bought xinquan above 0.5. Do you think this counter can make profit as usual . Because I wish to cut loss. Every day drop . My money missing a lot. But I checked xinquan every year making profit Never loss money .good performance. Nta super high . Fund a lot. What the hell of xinquan need right issue ?. Do you still hold xinquan ? Do you think xinquan this year will give dividend to us?
Lena. Can ask one more stupid question: Let say some share holder like me refuse to pay the 0.3 price for right issue share . Then what is the effect ?
current share price is 37 sen ... u pay 30 sen for the share then quickly sell at 37 sen to recoup some loss mar ... HAHAHAHAHAH ... some more got free warrants wor ... also can quickly sell mar ... But the catch is it may drop below 30 sen before u manage to sell at 30 sen. The risk is yours to decide. If u dun wan to pay the 30 sen ... then i think the directors have to sapu himself lor. The catch here is ... if after u forfeite the right ... the share price still remain at 37 sen ... u just lose the 7 sen profit from the new share lor. I cannot tell u wat to do. But xinquan is a CONMAN company. Wish u all the BEST. Cheers !
if not subscribing for the rights, I will sell off 50% of my holding on xd and subscribe to the rights and get free warrant, I will gain 7 sens and see what is the price of the warrant upon opening and sell again the warrant for another few sen gain
Slbzr : Thanks for your suggestions. I will take it. Good idea . Thanks. But why xinquan share minus 0 025 instead of 0.03. As I cal opening 0.37 - 0.34 = 0.03. ?
Hi Aaia 88. Ya just started this year. And I regret bought xinquan . Why nta super high and cash a lot still need right issue . ? Can teaching a bit . And can I know why every time after ex date share will adjust down . Can I know who adjust one, by bursa Malaysia or by shares holders. Sorry if I ask you too many questions . Haha
It has to be a GO since they dont hold 90% or more of shares. Anyway base on average price premium, a GO will not be more than 40.0c. likely to be 35.0c +/- range.
I agree with cytew. looks like they are pushing the share price down below 30 sen so that nobody will subscribe the rights and they will sapu all!!!! and they will also get all the warrants and can do wonders with it!!!
This is the cheapest way for them to collect their shares back at damn cheap price rather than to launch a GO to collect their shares back!!! If they are buying, who is selling for the past 2 weeks??
I think this is the first step to GO. If nobody takes up the rights, the major shareholder % will probably increase to 70%. Really smart Con Man!!! They must has good Advisers!!! SNNBCCB!!!
i just calculate.. definitely will take it private once Rights Issue is completed! A$$H0IE damn smart!!! if they take up all the Rights Issue - 169 m shares, they will reach about 70%. then they get warrants and they can convert ALL the warrants at only 40 sens... That will bring them close to 75%!!! With the Rights issue, They just manage to sapu >20% at around 33 sen ONLY!!! Damn Kau Smart!!! I also want a piece of this action!!! SNNBCCB!!!!
XINQUAN and MSPORTS same situation, will surely be taken private, they have no choice.
There are only 2 scenario here,
1. If accounts are faked, the safest for the "con man" will be to take it private and nobody will investigate, "con man" will be safe from prosecution.
2. If accounts are real, when taken private, "conman" will become very rich.
So, fake or real, privatisation is a sure thing.
As for the rest of us here, when taken private, surely will be higher than the current price. So, it is a sure win if you can grab and hold.
It's amazing after so many years still there are somebody imagine it is a good company. Privatisation? Haha!
I spent so much time research on this company. Whenever i went to China, i walked long distance just to find their products or shop. Finally, I gave up after i went to a few Parkson in China and just couldn't find any Addnice or Gertop.
Anyway, you know what the Chinese say?
1. The money is real in the bank.
2. The money doesn't belong to the company. It's there but they cannot touch it.
3. Probably most people didn't know this news on the fire. Why all the officers went to the scene so fast? They are closely related.
4. Money Laundry I think.
5. Xingquan was brought to Malaysia after ah Jib visit to China.
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geary
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Posted by geary > 2016-01-31 14:00 | Report Abuse
Cash/share=Rm 2,80. Cash Flow/share=0.58. Industry standard this company should be at least above 2.80. All these CASH are too good to be true!!!