ya with this confirmation.. Digi suppose to be at least 5.00, but i would expect only 4.50 la. Axiata margin only 3% compare to Digi 17 % !!.. merger suppose to bring our more from this company when their opex would reduce
Short term is RM5, medium to long term is easily RM7. Go and read their annual report then calculate their combine profit and lower the opex. Once everybody vaccinate and we return to pre-mco, the dividend payout is going to be 6-7% if price at RM5... For sure the share price will go higher to normalize at 3-4%, that's how I conclude price is RM7+
For those wondering why Digi share went up more and held at 4.20 compared to Axiata.. If you see the announcement previously, Digi will give money to Axiata for the merger:
So I think this means, Axiata share is worth less in the merger due to their lower performance while Digi has higher profit margin. Furthermore, only Celcom (a small branch of Axiata group) is merging with Digi. Not the entire Axiata is merging with Digi. In other words, celcom will be cut out from Axiata to merge with Digi. Hence, Axiata's share price as a whole wont be impacted much.. only a small part of Axiata (which is Celcom) will be merging ma... Price for Digi will rocket since Digi is listed and the ENTIRE Digi will be merged. Celcom is not listed, so only small part of Axiata will be impacted.. so maybe that explains the price movement.
that's the thing that confusing me.. seems Digi bought over Axita with $2 billion..not vice versa. Digi more profitable, and Axiata cukup2 makan only with very decent 3 % profits..
I think you are correct on this.. but once the meterial signed..than money will flow non stop. la towards 5.00
btw .. I am betting on C36 which i managed to buy at 0.035 cents.... my C43 already making >200% now still holding 80% from my inital investment at 0.045 cents!! . even though expirt on 30/ june..haha..
Only 2 more weeks to end of Q2, Axiata openly tell you good news going to sign agreement to merger liao.. after reach RM5 only people start buying hahaha
15 million stock change hands at the closing bell..don't look at the price but volume..who ever selling, at the same time someone collecting big !!. ..and..if you look at Axiata ..the oppositie transaction occured !!.. its not a concidence guys... macam swaping stock
Axiata Group Berhad (“Axiata”), Telenor Asia Pte Ltd (“Telenor”) and Digi.Com Berhad (“Digi”) (together “Parties”) announced that they have successfully concluded the due-diligence exercise and signed the Transaction Agreements for the proposed merger of Celcom Axiata Berhad (“Celcom”) and Digi (together “MergeCo”).
Customers benefit the most out of these merger by enjoying telco towers capacity and coverage from 2 companies.
Besides that, due to synergy, mobile data and call plans will be cheaper by 10%-15%.
Thus, there may be will substantial migration of customers from Maxis to Celcom-Digi, due to better coverage, cheaper plans and efficient operations.
Normally, in merger expect some layoff, but in view this merger does not involve that, existing staff will be more motivated and to prove themself better the incumbent staff coming in from another telco.
it depends on IB whether to buy or not.. esp Digi stock. let them digest the news first, before making the wise decision, to buy or not this fundamentally strong counter. .. covid or no covid, both the same.. profitable segment in Bursa.
@ron90 it depends on IB whether to buy or not.. esp Digi stock. let them digest the news first, before making the wise decision, to buy or not this fundamentally strong counter. .. covid or no covid, both the same.. profitable segment in Bursa. ---------------------------------------------------------------------------------------------------------------
Oh they not yet in ah..i tot oledi masuk. Templeton or whatever the name is..must be ang moh..big big and hairy entry
The parties said the merged entity (MergeCo) will serve an estimated 19 million customers with revenue of RM12.4bil, earnings before interest, taxes, depreciation and amortisation of RM5.7bil, net profit of RM1.9bil and free cash flow of RM4bil.
Isn't that over double the current profit? The price should rocket up according to the earnings in that case. RM7 is within possibilities if the merger finalises next year.
announcement carefull worded to avoid backfire ..but some people do acknowledge it.. they purposely put Celcom CEO (can you imagine foreigner running the biggest telecomunication company in this coyntry..haha) at the driving seat, but in reality, its Digi bought over Celcom with $2.0 billion "accusition".... Digi profits will significantly increase, currently the highest among the big 4. And 5G..is JV between Digi and TM.
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....
kl_guy
1,394 posts
Posted by kl_guy > 2021-06-15 22:51 | Report Abuse
tomolo digi up target rm5.00