Will probably drop for a bit because the panic-sellers who don't understand how to properly invest will sell it off, but after that will rise again because smart investors will pick up the shares at a bargain. The typical Malaysian cycle.
If there is a big tranche of warrants converted into mother shares, you may consider purchasing its warrant . At that time, the movement of warrant will be in line with the mother share's. Now, about 2,408,000 warrants have been converted (proceeds = RM 1,444,800). Currently, there are less than 50,000,000 warrants left.
What a joke! When it was called SGB & dead @ 60c for a looong time, nobody bothered...now goreng up to 2.00 & down to 90.5c all excited like little children...no wonder so many losers in the market!
This time around, we have: 1. Ex-MRT Corp, CEO Shahril Mokhtar as DWL managing director. 2. Ex-principal secretary of sarawak chief minister, Wan Khalik Wan Muhammad as executive directors. 3. Bestinet founder, Datuk Seri Aminul Islam Abdul Nor as substantial shareholder (30%). 4. Gadang holding berhad as substantial shareholder (10%) and joint venture partner. 5. Cash position at 28 mil.
Today my broker told me about a client who started buying Sumatec @ 25c in 2014 because he was so convinced about all the good news that came out about the co. in 2014 & after all, it dropped from 62c in 2014...what a bargain right??? Ended up he collected 3 million tickets at an average price of 18.5c. And he's still holding them...
Loss making co. in a teruk sector with lousy prospects...dun play play!
In 2014, Sumatec's debt was about 30 million, and its cash was only 1.5 million. Throughout the years, despite having reported several quarterly earnings but the only thing that increase was trade receivables (Now, it is reaching 157 millions). Of course, they will be facing cash flow problems.
In comparison, DWL is a cash rich company without any debt. The joint venture between DWL and Gadang indicated that they are looking into construction sector. With the re-instatement of ECRL, Bandar Malaysia, and record budget in sarawak, how come you said it is in a teruk sector with lousy prospect?
1) Right timing: Their movement coincides with the right timing (Reinstatement of ECRL, Bandar Malaysia and Record budget in Sarawak) 2) Right place: They are in the right place which is Malaysia (It is pumping up construction sectors) 3) Right person: Their company is managed by the right people (Ex-MRT Corp, CEO Shahril Mokhtar as DWL managing director.)
Vivocom's NTA contains too many intangible assets i.e. consolidated goodwill = 146 millions (This is the final amount after multiple impairment.). I won't touch this type of stock.
Recent announcement on Gadang's private placement implies that their cash flow isn't strong enough to cope with the expenses of their current projects and the projects they expected to receive in the near term. Here comes the question, what is the reason prompting them to spend 18 millions (nearly half of their expected proceed from the private placement) to purchase 10% shareholdings in a little-known company, i.e. DWL.
I'm not saying DWL will not rise, but those hoping for it to revisit 2.00 soon better think again...the way it goreng-ed also reminds me of Eastlnd & Sersol,which were goreng-ed to 1.00 in 2013. Don't trust all the news.
Revisiting 2.00 is impossible in near term. That is why we need long term investors. I totally agreed with you dompeilee, don't trust all the news. Whoever wants to invest must do their own due diligence. Don't simply accept what other people says including what i said here, because none will pay for your own losses.
I think this is their modus operandi : Push to 2 and dispose as it goes down; ppl might think its cheap at 1.5 and they sell down again and again' in the process all retailers are stuck.
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....
劉尹光
490 posts
Posted by 劉尹光 > 2019-05-08 09:25 | Report Abuse
yes! i grab at 0.895 , 0.90.. thx