Convertible preference shares give the preference shareholders the right to convert their shares into a specified number of common shares. The ratio of how many common shares an investor will get for each preference share is called conversion ratio.
Preference shares are shares in a company that are owned by people who have the right to receive part of the company's profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the company fails and has to close.
Many preference shares were converted at RM0.325, wouldn't it better to buy in open market at RM0.20? Does it mean the stock is worth at least RM0.325?
Buy now. Enjoy the fruits later. Why preference shareholder want to convert at a premium price when he/she can buy it at open market. Good indicator to buy more.
@KHEUN @NICEDURIAN @Asia88 Perdana Preference share convert to Perdana share no need to pay RM0.325 anymore because They already paid RM0.325 when Perdana Preference share was open for Perdana shareholder to apply. 1 Perdana share entitle to apply 2 Perdana Preference share at RM0.325 cents each. Perdana Preference shareholder just fill in form to convert to Perdana share will do.
But I don't understand why the finance cost was still RM55.20mil even the borrowing was reduced from RM633.25mil in 2018 to RM125.69mil? Maybe because the borrowing resolved using RCPS during final quarter, hence it hasn't restated yet.
Based on interpolation, the finance cost should be RM10.95mil in coming year since borrowings reduced significantly which means company can save RM44.25mil every year!
@khuen @asia88 Perdana NOSH 2209 Million , ICON NOSH 2377 Million (NOSH= Number of Share ) Perdana trade at 18.5 cents, ICON trade at 14 cents. Perdana Quarter report still not out Maybe suffer huge lose base on other competitor PENERGY lose about 20.7 Million this quarter. ICON this quarter report already out Net profit 21.6 Million. Not surprise one day ICON prices higher than Perdana. If Perdana suffer huge lose this quarter no mater how high Oil Price there will be not much impact to Perdana share price. But it make difference to ICON the higher oil prices ICON will follow oil prices trend. So put some effort to ICON instead of full attention to Perdana. Another OIL and GAS Counter Serbadk you can look into it. Last year Gain 500 millions plus. This quarter report gain 133 Millions net profit. Serbadk now trade at RM1.75 if price too high for you. You can look into Serbadk-warrant at 0.27 cents. Warrant expired December 2024 convertion is 2.62 By looking at yearly 500 million profit this year. Serbadk share prices may go up as high as RM3.00 by than Serbadk-warrant may trade at 70+ cents or higher. Good luck and buy on your own risk.
@Trapps You only can compared apple with apple not apple with orange. Sapura , velesto, Armada, KNM, Hibiscs, Dialog, all are apple. Involved in oil business, Perdana ,Carimin, Alam, ICON, Dayang, all are orange involved in off shore business. Other Serbadk, Umza, also involved in oil and gas business but also on other business. If I not mistaken Sapura suffer huge lose this quarter reports. There mush be a reason why Sapura traded at 10 cents now. Not much impact even oil price up to 40+....只是跟風上吧了.
@Chung : I might have different thought. Quarter report didn't out maybe an indication that the result is bad. However, director might prefer to delay the issuance to avoid so many question during AGM. Nevertheless, i can look at ICON too.
When i see the latest annual report, Perdana had secured contract for many of their vessel from Q3 2019 to 2021. Their balance sheet should be getting cleaner in Q1 from the debt restructuring.
Another thing is the utilisation rate of their vessel. Last year Q1 utilisation rate is below 40% and Q3 and Q4 utilisation above 70%. The increase in utilisation rate is mainly due to contract secured from Q3 and Q4 last year and they do secured contract in Jan'2020. If the company able to increase sales and control their cost, i think the result will be favourable.
@Chung thanks for your info but I had to agree with Asia88. Maybe coming QR still negative due to monsoon season affected their job execution, but I have faith that it will be better FY2018Q1 which was at loss of RM32mil.
to those not happy on my statement i would like to apology, every statement i made is based on my opinion and you has right to agree or disagree
btw not all forum i go i speak -ve, you can check all the records
sometimes not all the -ve comments is bad, when armada was above 50c, some had issued warning but many didnt appreciate and when it drop below 20c those people losing big and hard to recover
good comment and bad comments are actually good so you can have both pro’s and con‘s to weigh your position
one more thing, i never ask people to buy or sell, i just re iterate that high possibly coming qtr will be loss in operation but at the same time can be a gain from the cash obtain from RI, you can use this statement to research
and as i commented in hibscs, i always believe in the long term o&g counter will back to old high but oil market is highly volatile, it creates opportunity to those wanna play short but to those hold long term should not be worry on it
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Westeros
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Posted by Westeros > 2020-06-04 12:09 | Report Abuse
Convertible preference shares give the preference shareholders the right to convert their shares into a specified number of common shares. The ratio of how many common shares an investor will get for each preference share is called conversion ratio.
Preference shares are shares in a company that are owned by people who have the right to receive part of the company's profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the company fails and has to close.