Structured warrant, when exercised, will dilute future earning per share. And when exercise price is lower than market price, it will create a downward pressure towards the price.
The CQ is expiring tomorrow. The CQ holders will be motivated to exercise the CQ because exercise price RM 3.30 is lower than the market price of mother share. Then Ambank will be forced to buy enough Uchi shares from the market to distribute to the CQ holders. It seems to me the CQ holders made a loss because the purchase price was 15 sen and exercise ratio is 5:1, then the total cost to convert to 1 Uchi share is 15 x 5 + 3.30 = 4.05, or 4.05 * 3.25/3.30 = 3.99 if adjustment due to special dividend paid is considered to be more precisely calculated. Do I understand this correctly?
Following my study I think the impact towards today's share price is mildly negative to zero. But it may create a strong resistance at RM 4. Ooihk, have you ever tasted the coffee made from a Jura machine?
No need to study the price unless you are TA player. Haven't try Jura coffee. Only comment from user. You study this is better than study price movement.
Hi Ooihk, ya, I wish to learn from fundamental sifu also. Based on your understanding and fundamental knowledge of this business, do you think the revenue in USD of Uchi likely to be flat, single digit growth, double digit growth, or contract by year 2024? What are the reasons that support your view? I know we can wait for the QR report, but I would like to know what you think. Thanks.
Downtrend in 1H2024…that it my prediction. Reason : No catalyst for further growth. USD is expected to weaken against RM, so price will normalise to around RM3.3 and/or lower.
Kuku, value investor talk about the value of the company, not price.😁 A month ago 3.1, now 3.3????🤣 How do you know no catalyst for further growth? Have you read Affin report ar??? They put TP 4.2 wor? 😮 Want to buy cheap is it????
UCHI is rare gem. Consistent 100% profits from 2002 to now.
Expect bumper dividends for annual yield at over 30 sen with yield 8.2% at RM3.86 per share. This is >100% what you get from FDeposit. Crazy opportunity.
I posted earlier in FPI forum that Amway is expected to yield 7.2% at RM5.25 per share and it promptly shot up to RM6.90 which is 31% and if you locked in price at RM5.25, yields are 7.2% giving total returns of almost 40% in less than 3 months.
Disclosure: I own Insas , Insas WC, UCHI, FPI and others but didn’t; manage to catch Amway. it is the ONE THAT GOT AWAY (Katy Perry)
on worries about ESOS with employees disposing at <RM3.33, let me share that the former CEO Nazir Razak of CIMB did the same too in keep selling CIMB at RM4-RM5.50 per share until the shares shot up to RM10+. He knows the business inside out and yet.
So don’t worry, if solid fundamentals, EPF and others will continue ploughing in.
So what? They own half the companies listed on Bursa and most global markets. They choose to expose by country, without much due diligence on the company per say.
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....
Stirmungle
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Posted by Stirmungle > 2023-12-21 23:38 | Report Abuse
Structured warrant, when exercised, will dilute future earning per share. And when exercise price is lower than market price, it will create a downward pressure towards the price.