crawler: I don't believe that to be true until I see the approval announced in black and white.
"will be approved" just doesn't cut it. It could be approved say in a year or two's time (personally I don't believe there'll be an outright rejection, but a delay is quite probable).
Anytime someone says, approval by "xxx days/weeks/months" or "real soon", I take it with a pinch of salt.
It's the same as saying, a new strategic investor has bought into the company, and no announcements declaring that ever appear (unless said strategic investor is happy with a less than 5% stake... which doesn't make sense in calling him/her a strategic investor in the first place)
Facts first, assumptions second, rumours third (usually a very distant third). That's how I've always looked at investments.
crawler: To each his own. I'm in this for the long term, not for a quick exit. You might think it naive to wait for the black and white, whilst I think the same for someone who's "hoping" that it will happen soon.
This is a bit like people believing that Benalec has already won the Sri Tanjung Pinang 2 job... even though the tender hasn't even been called for yet.
Disagree. This is not a sale or a purchase. This (the EIA) is the approval for you to start doing work, whether you're able to sell your work is another question altogether.
Sona's case was partly due to the fact they made the announcement with very limited details (and the fact that they have to gear up to almost 1) to make the purchase.
On the balance of things, doubt that any such news (EIA approval) would cause a sell down.
10 Jun 2014 CIRCULAR TO SHAREHOLDERS IN RELATION TO THE: PROPOSED DISPOSAL OF TWENTY TWO (22) PARCELS OF LEASEHOLD COMMERCIAL LAND WHICH HAVE BEEN OR WILL BE RECLAIMED BY BENALEC SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF BENALEC HOLDINGS BERHAD, MEASURING IN AGGREGATE INDICATIVELY 128.52 ACRES (APPROXIMATELY 520,102 SQUARE METERS TO BE HELD BY JAYAMAS CEKAP SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF BENALEC SDN BHD, TO ULTRA HARMONY DEVELOPMENT SDN BHD FOR A TOTAL DISPOSAL CONSIDERATION OF RM235,129,910.40 TO BE SATISFIED ENTIRELY IN CASH (“PROPOSED LAND DISPOSAL”)
thanks taciturn - to me both news land sale RM235m and the HoA ratification sound positive and good to the company and investor but against the share price may not react accordingly to those news and may go to the other direction. I could be wrong let see.
Also I do think any issues for share holder to vote and agree with the HoA because all is good and completed. Am I miss out something?
powerwk: Most logical, rational shareholders will vote for the HoA. Of course there's always a fear that those who are illogical might show up (i.e. kukuman won 6/58, with his winnings bought into Benalec, and shows up at the EGM and votes against it :p).
Am reading the HoA circular now, the one thing that does cover things is item 14 (Approval Required) on Page 30. That basically does cover the situation as best as they can if shareholders vote against the resolution.
To quote from the second paragraph, "As set out in Section 13.1 above, with regards to the HoA settlement arrangements as set out in Sections 2 to 10 of this Circular, notwithstanding the outcome of the EGM for the Proposed HoA Ratification, those items that had been completed shall remain effective"
Translation, whatever has already been completed as part of the agreement shouldn't be undone (cat's out of the bag, horse has fled the barn, bucket has spilt its milk) even if shareholders don't like it.
The only two items that aren't completed as yet as part of the global settlement is the "Citypoint Suit" (should be less than RM1m that Benalec has to pay them by beginning of July next month to complete the matter) and The Access Road (not sure how to calculate any liabilities on Benalec's part - if based on the cost of road, less than RM13m).
Besides that everything is basically thumbs up. Still reading the circular slowly, will chime in if I spot anything else.
And yes, the share price can sometimes be illogical. :p So don't know if it'll go up or down after this (and the EGM). There may be some disappointment tomorrow as the 1 Malaysia Strategic Oil Terminal term sheet expires tomorrow (and will likely be extended for another 6 months).
Heh, okay. To put it again, let's agree to disagree.
You like to pin things on your hopes and dreams that things will work out.
Me, I'd rather be realistic.
Bonescythe, what people cannot see is simply assumptions. The only time you get ahead is if you have kangtao/insider news.
And crawler, I'm not interested in what's printed in black and white on newspapers. They can be wrong, they can also be rumour mongering and assuming things.
I'd rather see the announcement from the horse's mouth itself, i.e. the company. If they announce it on Bursa, I'll believe it, till then carry on.
I do have one question for bonescythe though. If Benalec doesn't win STP2, then what? Don't get me wrong, I am hoping that they'll win the job. But what if they don't? What happens to your analysis and playbook? Anchor and adjust?
Then you'll be looking to the RM235m sale and thanking your stars.
I also note with amusement that you view the "HoA for wadever thing is not impactful". Makes me wonder if you even read the circulars, heh.
So far I've seen four types of traders. There's the insider/syndicate type who gets news before hand (sadly, not me), then there's those who believe in FA (I'm one of them), others who believe in TA (not me), and then there's the type who main tembak (or listen to rumours), close your eyes and pray that things work out. :p
Ok la.. Whatever it is, no point to argue. You got your sets of trading strategy. As long as it is making money and return to you, keep using it and keep doing it. But if your method is not working out as in losing money, then you have to rethink your method whether it is correct anot.
As for me.. I managed more than 400% in 6mths. How I managed, how I got information. Some direct, some indirect, some through intensive studies.
Agreed with u, bones. Results speak louder than anything. But, u still have to test it whether u can maintain the good results for 3 years, 5 years, 10 years, 20 years and above. Long term consistent good results is the key measuring factor to differentiate the great investors with the seasonal investors. Anyway, good write-up on Benalec in yr blog, very impressive. Good luck to u in yr investment journey toward the rich.
Unlikely any big dividend payout cause they need to preserve capital for huge potential projects. This is a capital-intensive business, which also enjoy very handsome profit margin. Within a year or two timeframe, it'll definitely bear fruits. Any price weakness is an opportunity to accumulate more if one still don't have enough of it.
thinkkfully: There are four options that a company has with regard to treasury shares.
a) Keep it. By doing this, any cash dividends issued, part of the payout is reduced since it goes back to the company via treasury shares. b) Cancel the shares. This reduces the amount of shares in issue and increases the EPS for existing shareholders. c) Sell the shares. This assumes that the company will make a profit when they do so, increasing their cash flow. However when this is done it usually means that the company believes the share price is fully valued (or in case of a company not doing so well, that they need the money for operations) d) Dividend in specie. A share dividend to existing shareholders. This seems to be the most common route to reward existing shareholders. However as the treasury shares currently come to just a little over 1% of the company's paid up capital at the moment, this is unlikely for now. I.e. a dividend in specie if announced now will be 1 for every 100 shares held which is very small.
Considering that the majority of buybacks are quite recent, I believe the company will just hang onto the shares for now.
And for the record, treasury shares are not used for bonus issues.
wongwee - that exactly my point :-) but how many of them will attend the AGM or EGM? many are trying to wish and hope getting the answer without much work and even not willing step out from house :-)
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Posted by taciturn > 2014-06-09 09:17 | Report Abuse
Article regarding Johor, the palace and land reclamation in the state
http://www.themalaysianinsider.com/mobile/malaysia/article/putrajaya-politicians-gird-to-check-royals-influence