Posted by king7 > 2014-09-14 01:58 | Report Abuse

Why Leaw announce at this stage?

Posted by taciturn > 2014-09-14 21:43 | Report Abuse

speakup: It's a secured convertible bond, not an ICULS. With ICULS, you do not repay the loan but convert all outstanding units to shares on expiry, and the U there means Unsecured (higher interest rate due to that risk).


Okay, my view on this.

Benalec's earnings are lumpy, with land sale payments coming in clumps as they're not handling any cash jobs at the moment (except for the RM203m job for Ultra Green/Oriental).

One can argue that the issue of this bond is to help keep cash flow constant.

On the flip side though, the amount involved is pretty big. Based on their outstanding book order, a smaller facility would have been sufficient. And I suspect it could have been done as a term loan, albeit with a higher interest rate.

Assuming an interest rate of 5% (this is very optimistic, realistically I suspect it should be between 5.5%-6%), the interest cover comes to RM10m.

Based on Benalec's historical financials, that's a healthy chunk of their net profit.

Now, if one were a fool (insert name here - you all know who I'm talking about), one would declare that the RM200m bond is to "cheat" and "con" shareholders of their money. Never mind that the controlling shareholder's own 47% of the company and would be "cheated" and "conned" as well. (Tune in to this forum for our regular negative troll, with his amazing Engrish, as he screams die, die, die. Unless we're lucky, he should be appearing like a bad penny soon)


Anyway, I digress. The bursa announcement is careful not to cross any lines by jumping the gun, but to me, the size of the bond and the timing (to be issued first half of 2015) indicates that the company is optimistic that it will need the funds during that period. (Take a wild guess as to which project it is. And no, I don't think it's STP2. Tenders haven't even been called yet)

This makes me more confident that there should be good news in the offing by the end of the year/early next year.

Personally, I've never been a fan of convertible bonds/private placements because of dilution issues (especially at a discount with regards to the latter). But between the two options, the bonds are the better choice as there's also a premium for any conversions done (yes, yes, offset versus interest paid out during its tenure).

However I can understand the need for it due to the expected working capital requirements in the near future. Bondholders will get a pretty solid deal out of it, if Johor pans out soon, they'll make a killing. If not, they still get the interest payments and the right to repayment after 5 years, and it's secured against existing/future land assets.

Posted by Joel > 2014-09-15 09:41 | Report Abuse

making loss campany. watch out !

Posted by oasischeah > 2014-09-15 09:46 | Report Abuse

I do not believe the bonds with get attraction.

Posted by zero > 2014-09-15 10:25 | Report Abuse

@oasischeah - care to clarify please? do you mean that the bonds will not be attractive enough to potential subscribers? or that existing shareholders will not be looking at the potential new shares created?

Posted by oasischeah > 2014-09-15 10:38 | Report Abuse

The reputation of this company is not attractive for investing. This is my opinion.

Posted by zero > 2014-09-15 10:48 | Report Abuse

@oasischeah - point taken, thanks

Posted by happyvic > 2014-09-15 11:24 | Report Abuse

I am not commenting on whether this is a good counter or not. However, 0.925 is a very good price even for speculators. I just loaded up myself big time on this. People are crazy and the moment they announce a profit, it is going to shoot up again.

Posted by tags80 > 2014-09-15 11:26 | Report Abuse

200mil bond. johor project uncertain. all current projects are in Melaka which used to be under the supervision of ex director with little new development except the ultra green one. keep saying big things are in Johor for god knows how many years already. now this? please.. only a fool will buy the bond. put your money in trust fund also better. safer than this. (all these are all my opinions only! ignore this if you disagree no point arguing like someone vs someone here. TQ!)

Posted by taciturn > 2014-09-15 11:37 | Report Abuse

Tags80: You do know the bond isn't being issued to existing shareholders right? It's an institutional/high net worth issue. Whether it's foolish or not to invest in it doesn't matter to retail investors since only a small percentage would qualify to subscribe to it if they wish.

Anyway that's Hong Leong's problem to get subscribers and irrelevant to the rest of us.

Posted by Woody > 2014-09-15 12:36 | Report Abuse

I hv doubts with this counter, sold all, even at loss n invest others.
Happy trading

Posted by Woody > 2014-09-15 18:17 | Report Abuse

Oops...again today affin research posted benalec TP is ard rm2. Becos of its previous write.up, I bgt.
Anyway sold at loss...thank you.

Posted by taciturn > 2014-09-15 23:52 | Report Abuse

Share buyback today by Benalec. 500,000 shares @ average of 92.4 sen each.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1740821

Posted by happyvic > 2014-09-17 14:39 | Report Abuse

yeah buyback more!

Posted by happyvic > 2014-09-18 10:31 | Report Abuse

Why they stopped buying back their own shares!!! Sifu taciturn... any news on this?

Posted by zero > 2014-09-18 11:24 | Report Abuse

just venturing a guess - if they have to raise debt, then its a slap in the face for shareholders (and bondholders) if they are still seen to be using money 'whimsically' by buying back shares..

Posted by kukuman > 2014-09-19 10:09 | Report Abuse

oasischeah, yes. reputation. that's the word. when there is no reputation, whatever the company sells or promotes nobody cares. be it bond or future project.

Posted by oasischeah > Sep 15, 2014 10:38 AM | Report Abuse
The reputation of this company is not attractive for investing. This is my opinion.

Posted by xncziyi44 > 2014-09-20 20:20 | Report Abuse

one hand issue bond loan next shares buy back.can make more earning from share buy back than reclaimation contracts? not very consistant actions.

Posted by king7 > 2014-09-20 21:47 | Report Abuse

http://www.themalaysianinsider.com/bahasa/article/pendengaran-awam-projek-kontroversi-johor-bermula-esok

Posted by Kukuman > 2014-09-21 00:08 | Report Abuse

xncziyi44, could you confirm mr ben is "one hand issue bond loan next shares buy back" ? I thought the brothers were notorious enough. If it is true, they really want to top it with new trick.

Posted by king7 > 2014-09-21 12:36 | Report Abuse

http://www.thestar.com.my/News/Nation/2014/09/21/No-more-reselling-of-affordable-homes-says-MB/

Posted by king7 > 2014-09-21 12:43 | Report Abuse

Where is this TSHWONG?

Posted by Kukuman > 2014-09-22 17:15 | Report Abuse

He already sold and make a lot of money. that's why so quiet. and now waiting to collect at low price. that is the standard line of conversation

Posted by Kukuman > 2014-09-22 17:16 | Report Abuse

Posted by Kukuman > Jun 17, 2014 09:35 AM
Let's put it into another chart to see a more realistic stock performance.
13/11/2013 (Day 001) : 1.120
25/03/2014 (Day 131) : 0.920
28/03/2014 (Day 134) : 0.900
01/04/2014 (Day 138) : 0.890
03/04/2014 (Day 140) : 0.885
04/04/2014 (Day 141) : 0.905
08/04/2014 (Day 145) : 0.895
10/04/2014 (Day 147) : 0.895
14/04/2014 (Day 151) : 0.895
16/04/2014 (Day 153) : 0.900
17/04/2014 (Day 154) : 0.900
22/04/2014 (Day 159) : 0.910
23/04/2014 (Day 160) : 0.935
30/04/2014 (Day 167) : 0.900
05/05/2014 (Day 172) : 0.895
06/05/2014 (Day 173) : 0.940
16/06/2014 (Day 214) : 1.120
26/06/2014 (Day 224) : 1.140
09/07/2014 (Day 237) : 1.090 (Spin doctors said price will go up after EGM. Don't get conned!)
30/07/2014 (Day 258) : 1.090
01/08/2014 (Day 260) : 1.050 (Some cock here claimed holding for long. Don't get conned! Only good for contra player here)
05/08/2014 (Day 264) : 1.050
07/08/2014 (Day 266) : 1.050 (Spin doctors still claimed hold many. typical bull story)
11/08/2014 (Day 270) : 1.020
13/08/2014 (Day 272) : 1.000 (Spinner said after EGM, price will go up. when?)
22/08/2014 (Day 281) : 0.990 (So sad. one by one, innocent investor come out telling they had bought high after taken-in by spinner's story)
26/08/2014 (Day 285) : 0.925 (Spinner now said this is an Extra Long term stock. Extra Long?)
29/08/2014 (Day 288) : 0.920
12/09/2014 (Day 302) : 0.925 (Spinner said he is FULLY invested in mr ben)
22/09/2014 (Day 312) : 0.920 (Spinner said bond issue is good. what a spin!)

I am tracking this rubbish company share performance.

Posted by Fly888888 > 2014-09-22 19:13 | Report Abuse

Kukuman -Now is good time to buy not ?Buy small small earn kopi money ?

Posted by rizerlee > 2014-09-23 12:56 | Report Abuse

Does Benalec have any progress at Johor Project EIA ?
seems like no news progress so far

Posted by Kukuman > 2014-09-23 16:03 | Report Abuse

fly888, forget it. this is a rubbish company

Posted by ufis > 2014-09-24 01:27 | Report Abuse

still having problems with this stock? not suprising n kukuman has been giving this message to u for ages..hopeless stock..to resolve ur problems go for ECONBHD!!!!

Posted by wonghk > 2014-10-01 16:54 | Report Abuse

They will pass the EIA eventually...

Posted by rizerlee > 2014-10-02 14:58 | Report Abuse

please share if you have info :)

Posted by Kukuman > 2014-10-03 10:44 | Report Abuse

Samsung555, Yes. that was posted by the spinner 5 months ago ! very timely reminder. What is your point, samsung555? Didn't I said this is rubbish company

Posted by samsung555 > Oct 3, 2014 10:23 AM | Report Abuse
Posted by savvyone > Apr 23, 2014 10:55 AM | Report Abuse
I've just got news that Benalec has obtained EIA approval for both the Tanjong Piai and Pengerang land reclamation projects and work should start as early as next month. (Kukuman, if you are there, don't buy!)

Posted by savvyone > Apr 25, 2014 11:30 AM | Report Abuse
taciturn, tshwong & samsung555, I checked with my source this morning and was told that EIA approval is well advanced and on track. He had assumed EIA to have been approved because the company is currently mobilising its resources for starting reclamation work in Tanjong Piai. He further said that the Terms of Reference (TOR) for the EIA process has been approved for some time now and should be posted on the DOE website anytime soon, if it has not been posted already. As always, I will try to share accurate information as far as possible, but the caveat is that there is no guarantee. So, please be guided accordingly.

Posted by wonghk > 2014-10-03 12:25 | Report Abuse

Rizerlee, my friend is the one of the NGO member. She said the reclamation work will be carried out eventually but no idea when. And now, they are busy to relocate the seahorse there to another place.

Posted by rlch > 2014-10-03 21:25 | Report Abuse

Bought today.

Posted by king7 > 2014-10-05 13:42 | Report Abuse

Imagine Singapore reclaim land until nobody business, leave it Malaysia government to measure the impact and what they wanted to do. Politically , noise everywhere for beneficial to who n how about me.

Posted by powerwk > 2014-10-06 23:46 | Report Abuse

samsung555 - was the news being published yet? Seem can't find that when google.

*** I've just got news that Benalec has obtained EIA approval for both the Tanjong Piai and Pengerang land reclamation projects and work should start as early as next month. ***

Posted by king7 > 2014-10-07 16:55 | Report Abuse

rIch- you have to buy more to fulfill your dream.

Posted by Kukuman > 2014-10-08 10:29 | Report Abuse

Posted by Kukuman > Jun 17, 2014 09:35 AM
Let's put it into another chart to see a more realistic stock performance.
13/11/2013 (Day 001) : 1.120
25/03/2014 (Day 131) : 0.920
28/03/2014 (Day 134) : 0.900
01/04/2014 (Day 138) : 0.890
03/04/2014 (Day 140) : 0.885
04/04/2014 (Day 141) : 0.905
08/04/2014 (Day 145) : 0.895
10/04/2014 (Day 147) : 0.895
14/04/2014 (Day 151) : 0.895
17/04/2014 (Day 154) : 0.900
22/04/2014 (Day 159) : 0.910
23/04/2014 (Day 160) : 0.935
30/04/2014 (Day 167) : 0.900
05/05/2014 (Day 172) : 0.895
06/05/2014 (Day 173) : 0.940
16/06/2014 (Day 214) : 1.120
26/06/2014 (Day 224) : 1.140
09/07/2014 (Day 237) : 1.090 (Spin doctors said price will go up after EGM. Don't get conned!)
30/07/2014 (Day 258) : 1.090
01/08/2014 (Day 260) : 1.050 (Some cock here claimed holding for long. Don't get conned! Only good for contra player here)
05/08/2014 (Day 264) : 1.050
07/08/2014 (Day 266) : 1.050 (Spin doctors still claimed hold many. typical bull story)
11/08/2014 (Day 270) : 1.020
13/08/2014 (Day 272) : 1.000 (Spinner said after EGM, price will go up. when?)
22/08/2014 (Day 281) : 0.990 (So sad. one by one, innocent investor come out telling they had bought high after taken-in by spinner's story)
26/08/2014 (Day 285) : 0.925 (Spinner now said this is an Extra Long term stock. Extra Long?)
29/08/2014 (Day 288) : 0.920
12/09/2014 (Day 302) : 0.925 (Spinner said he is FULLY invested in mr ben)
22/09/2014 (Day 312) : 0.920 (Spinner said bond issue is good. what a spin!)
07/10/2014 (Day 327) : 0.875

I am tracking this rubbish company share performance.

Posted by rizerlee > 2014-10-08 10:59 | Report Abuse

Share raise and drop.

by the time it drop , you said you tracking this rubbish company.
by the time it raise , you just disappear.

This forum is used to sharing constructive idea but not let ppl to playing God Role.
You are not Warren Buffet and even Warren Buffet don't do this type of comment.

Posted by happyvic > 2014-10-08 14:25 | Report Abuse

Agreed. If you think this is a rubbish counter then why you track it?

I think it is of good value at the current price being its all time low. Share price will always rise and drop as rizerlee said. I just loaded up and waiting for it to bounce.

Posted by YangBerhormat > 2014-10-08 14:33 | Report Abuse

ini kongkam lost underwear kut, siao liao nothing to cover his kuku kikikikiki..

Posted by rlch > 2014-10-08 22:47 | Report Abuse

king7, I buy more today as price is near all time low.

Posted by hcsjeff > 2014-10-11 00:50 | Report Abuse

http://www.thestar.com.my/News/Nation/2014/10/10/Budget-2015-full-speech-text/

52. The Pengerang Integrated Petroleum Complex project with a total investment of RM69 billion is expected to create more than 10,000 job opportunities.

Hopefully with the push from the government, the EIA approval will be immiment and the project got kicked off soon and be a catalyst to the growth of Benalec.

Posted by rizerlee > 2014-10-12 01:49 | Report Abuse

hope new budget of pengarang might help Benalec

Posted by samsung555 > 2014-10-13 11:44 | Report Abuse

ah Ben fell to history low as RM0.835......

Posted by rizerlee > 2014-10-13 13:47 | Report Abuse

Market is bad recently
Inari , Armada and other drop even more.

Posted by Kukuman > 2014-10-14 15:38 | Report Abuse

What a low ! Is the spinner buying now? Other stocks have had their good days before they dropped. But mr ben never has his good day but also drop like others. Still deny this is not a rubbish company? pity

Posted by rizerlee > 2014-10-15 10:22 | Report Abuse

from your Kuku tracker ,
i notice that they raised from 0.8x to 1.xx before they have bad day.

I guess maybe you didn't notice it as you disappeared by the time.

Posted by Kukuman > 2014-10-15 10:30 | Report Abuse

If you really think so that street player like you can manage to get at 0.8x and sell at 1.xx, then this is the time you should buy. talk is cheap. Spinner's standard story is that they tell people they had bought at the lowest and sell at the peak.

Posted by shipcapt > 2014-10-16 10:27 | Report Abuse

RM0.51

Posted by Chin Hui Lee > 2014-10-16 11:24 | Report Abuse

Now, RM 0.785, anyone think it is cheap now?