Price of the 2 companies RM112.2m paid by cash of RM40.7m and RM71.5m shares (55 mil new shares issued at RM1.30) The 55m new shares will slighly dilute eps
Not only the EPS, The purchase will also dilute the NTA about $0.10/share !!
Besides the 55 mils share issue out as part of the purchase consideration, there will be another 15 mils share will be issued as private placement, both the issue price is $1.30.
The cash flow, debts and gearing position all are affected.
55mil and 15mil private placement pay by Tambun or Director?still confusing..pls explain detail brother and how it affect eps,nta,gearing,etc pls. Thanks.
Did urs consider the additional earning from these two companies? And interest to be incurred as borrowing from bank. This eps for additional share is higher than exisitng one. I would said this will not diluted the overall eps
I rather think that it will hang around $1.30 +/- for short term. Mid term provided with a good 2nd Qtr results and stable market condition, the price might test $1.50. Anyway just my personal opinion.
I think so... the source will boost the share price will be their 2nd qtr report... one more will be the announce of 2nd expressway from Jelapang Ipoh to 2nd Penang Bridge.
Asian market rebound.. i suggest buy abit to avg down. i somehow got a tingling feeling tonite dow will be green, once they green we surely power up! (HOPEFULLY!!)
Then what is your expected return % for this investment ?? What is the value you think this counter worth ?? and hong long you willing to park your $$ with this counter ???
I guess after asking yourself these questions, maybe you will have a better idea on what is the next course !!
0.93? Then its really not worth jumping the ship now, because the 2 company they just bought are pretty good. So this further boost their company. Long term play ok, since ur not suffering any lost.. Be patient. =)
Agree with 逍遥子, is depend how your point of value for this counter of cause your holding power too, this is a good counter with strong P&L, may still rise in mid term, don't expect 2 to 3 days business in this counter.
I bought Tambun around $0.83 and I start to lock some profit when the price shot up to $1.36-$1.40, I sold 40% of my holding just to play safe a bit. Where as I am planning to hold the remaining 60% for long term unless the company stop to show the expected growth % that I expected, or the big economy environment/Malaysia property market has some major changes. I bought back some yesterday @ $1.25 (cause I think the price is attractive).
At the moment, I am still consider Tambun is undervalue cause :-
(1) Conservatively this year estimate EPS would be around $0.16 (included the the dilution of 70 mils newly issued share). With the PE 8 then the price should be $1.28, it the PE is 10 then the price should be $1.6 !
(2) Dividend yield %, assume with the EPS of $0.16 and 40% return rate then dividend with be 6.4 cents and the Div % would be around 5% ( I m using $1.28 as the current share price). which is reasonably good %.
(3) Additional plus point of the land bank in Batu Kawan, 2nd Penang Bridge and good pick up rate on the Pearl City's project, as well as recent 100% own up the subsidiary company from Nadayu.
Howeveras what garydonald21 said it take times to unlock the value, I am looking at 6-9 months time, maybe with some luck the price might test $1.5.
Besides, I have a friend bought Tambun around the same time and he sold 100% at the price of $1.40 and switch his $$ to other counter and overall he make better return % compare to me as at this moment.
So, the bottom line is, how to access the counter it depend on what is your investment style and your capital limitations & expectation.
Nicee.. success story. Tambun whenever you r able to collect at the right time will never go wrong. Lol i collected the wa at 35sens.. big chunk n chunk of them. But of cos i sold all already.. :) bought n sell, buy and sell again n again.
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sephiroth
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Posted by sephiroth > 2013-06-21 21:56 | Report Abuse
Price of the 2 companies RM112.2m paid by cash of RM40.7m and RM71.5m shares (55 mil new shares issued at RM1.30) The 55m new shares will slighly dilute eps