I feel that this counter is a mid to long term investors (1 to 2 years). I suspect the price may close at 70c today but when it will re-bound, it is a question to the operator and other investors.. frankly speaking, if Kenaga rated them with such target price and directors selling at around 75c, I don't see a relation of Directors selling them for profit rather it is for their own interest cashflow.. if they really want to sell at 75c or at 70c range, they would sold a larger sum than disclosed amount at Bursa and more directors would have opt in..
Extract of Kenaga research: Consensus is currently projecting net income estimates of RM50.3m (+95%) in FY20E and RM151.0m (+200%) in FY21E. This translates to forward PERs of 29x and 10x, respectively.. I think the unaudited Quarter report will be out soon, and we can find out more from there..
I think it has a potential to be around 72.5c today/Friday close. Buyers support are strong but cautious.. large resistance at 73c to 77c, many sellers. I feel that it will take 2 to 3 weeks minimum to clear the on-going trades before getting a brighter picture..
went above expectation today, don't think it can break 77.5c by tomorrow. most likely will be in this region for some time before another breakthrough..
ESOS usually cannot be redeemed until certain company objectives are met. It is also hard to believe that the directors had a full access to ESOS without any objectives. Objectives usually include annual turnover or profit exceeding the budget etc. ESOS is like a bonus for their hard work and to stimulate them to be more engaged with the company...
ESOS is contractual. If you have the ESOS, you can exercise anytime. Some company even allow the employees to borrow from treasury shares to sell first.
ESOS has minimal impact on share price. The effect to the share price will be minimum or negligible because not every employee will be able to to buy shares in loads, and there is a limit to the number of shares which can be issued. The pros is that employees will be more motivated to work harder because they now own a piece of the company which hopefully will translate to higher productivity to the company.
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....
Fong Kh
1,837 posts
Posted by Fong Kh > 2020-09-30 15:51 | Report Abuse
Going to go sideway