Posted by yourpal > 2012-10-22 22:42 | Report Abuse

Is it normal for a stock to drop so much (6.78%) after it went ex-rights?

Posted by tonylim > 2012-10-22 22:59 | Report Abuse

no.its quite abnormal. i hold a small qty. will buy to average if drop further

Posted by yourpal > 2012-10-23 00:00 | Report Abuse

What price u target to buy more? I hv a feeling there's negative sentiment towards this rights issue. Someone asked to compare to MFLOUR that never recover after similar exercise. Your opinion?

Posted by tonylim > 2012-10-23 00:03 | Report Abuse

they ask for rights issue to build plant.
Not sure entry price, we will see

Posted by hauru > 2012-10-23 10:14 | Report Abuse

MFLOUR's rights issue is used to pare down heavy debt (gearing ratio 0.82 before rights). JOHOTIN have much lower gearing ratio (0.44) plus net cash position by end of FY2012. This rights issue is mainly being used to fund land acquisition and factory construction. From the rights, 5mil is used to acquire 4 acres of land at Telok Panglima Garang(cost of acquistion ~RM28.70 per sq ft - I think this price is reasonable), and 10mil used for factory construction.

That being said, there will always be risk in any investment. The new plant is only expected to be operational in the next 18 months and any profits arising from it will probably be reflected on 2014's report. But I think it will be good opportunity to accumulate some for some exposure when it is undervalued.

Posted by yourpal > 2012-10-23 18:43 | Report Abuse

@tonylim - Entered already? What's happening? From yesterday's ex-rights price 1.77 fell to today's 1.56.

Posted by tonylim > 2012-10-23 21:37 | Report Abuse

hauru, have they fixed the exercise price of the warrants. if not, they night be pressing down the price to fix the ex. price.

yourpal no not yet. see next 2 trading days.

Posted by hauru > 2012-10-23 22:46 | Report Abuse

warrant ex-price is fixed at 2.28

Posted by sapurakencana > 2012-10-23 23:47 | Report Abuse

don't panic.The continues drop for the past 2 day is manupulate by few speculator.They try to sell as lower to influence our small investor to follow them,so that they can accumulate at the lower price.see the trading volume so small(less than 1mil share trading)means that less major share holder sell their holding & the fundalmental remain unchange & PE = 9 is very attractive to accumulate when price below 1.50.Any way i still hold my position since 2010,since i believe due to population keep on increase,the demand for cunsumable product will not reduce.This is what happen in Datch Lady Price increase from RM23 to RM49(less than a year).

Posted by tonylim > 2012-10-24 00:06 | Report Abuse

SK,my hunch its maipulated.

@yourpal, I am putting in a buy order now in view of 3 digit drop in dow

Posted by tonylim > 2012-10-24 00:09 | Report Abuse

Can anybody here confirm that all rights issues are to be underwritten as in previous Bursa ruling?

Posted by tonylim > 2012-10-24 00:11 | Report Abuse

OK. I just read that 25th oct is trading of rights

Posted by yourpal > 2012-10-24 05:27 | Report Abuse

1) The Rights commence of trading : [ 25 October 2012 ]
2) The Date of Despatch of the Prospectus and Provisional Allotment Letter of Offer : [ 29 October 2012 ]
3) The last day and time for Acceptance, Renunciation and Payment : [ 9 November 2012 @ 5:00pm ]
4) The Rights cease quotation : [ 2 November 2012 ]
The Stock Short Name, Number and ISIN Code [ JOHOTIN-OR, 7167OR and MYL7167OR002 ] respectively

What does the following mean?
3) Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned:-
a) Selling Broker to deduct [ 1/4 ] , of the Selling Price against the Selling Client.
b) Buying Broker to deduct [ 10% ] of the Purchase Price against the Buying Client.
c) Between Broker and Broker, the deduction of [ 1/4 ] of the Transacted Price is applicable.

Posted by yourpal > 2012-10-24 06:09 | Report Abuse

@tonylim, if I have 2400 ordinary shares, means I'm entitled to 800 rights shares and need to pay RM1,024 only (800 * 1.28) shall I choose to exercise in full? Are you positive about this rights issue? Big part of it is used to fund expansion.

Posted by tonylim > 2012-10-24 10:56 | Report Abuse

i am short term. are you?
i should be asking this question

Posted by yourpal > 2012-10-24 11:00 | Report Abuse

i am not. rebounded today.

Posted by tonylim > 2012-10-24 11:01 | Report Abuse

btw bought some this am. enough for me

Posted by tonylim > 2012-10-24 11:08 | Report Abuse

lets see the trading range of the rights trow

Posted by yourpal > 2012-10-24 11:23 | Report Abuse

Will the rights trading have any influence on the price movement of the parent share?

Posted by tonylim > 2012-10-24 11:27 | Report Abuse

Put on your thinking cap and behave like you are the boss of johotin

Posted by hauru > 2012-10-25 10:09 | Report Abuse

JOHOTIN-OR trades today at 0.62, strike price 1.28. Cost of acquisition: 0.62+1.28 = 1.9

seems that JOHOTIN is considered cheap now if you look at the illustration above as the rights pricing indicate that JOHOTIN is worth at least 1.9. Upside of ~17% based on current price of 1.62

Posted by Kyran Chow > 2012-10-25 11:13 | Report Abuse

Are you guys forgetting the fact that it has a free detachable warrant?

Posted by hauru > 2012-10-25 13:50 | Report Abuse

@Kyran, mind sharing how would the free warrant affect the stock's valuation?

Posted by Kyran Chow > 2012-10-25 14:05 | Report Abuse

Well..assuming that Johotin will stay at 1.6..and the OR price now is 0.62...which means
0.62 + 1.28 = 1.6 + WA.
1.9 = 1.6 + WA
WA = 0.3? So what if the WA worth more than that? Let's say if the WA is 0.6? doesn't it makes the OR become relatively cheap?
So the question is how the hell would I know the WA will be trading @ 0.6? Well..it's for u to find out then..:)

Posted by msuhaims > 2012-10-26 00:28 | Report Abuse

I'm new here. I want to ask if I buy the right issue during the trading right period, I'm also entitle for the free warrant even I don't have mother share of johotin? Hope all sifu here can give the answer....tq

Posted by Ping Ping > 2012-10-26 05:26 | Report Abuse

if i don't make a mistake, you are entitled for the free warrant (1 right issue to 1 warrant). We don't know the warrant price. johotin maybe a good investment for thr future. The new subsidiary company able dairies brings in a a lot of profit 8.8 m for the 2nd quarter financial year 30/6/2012.therefore, we estimate the yearly profit is nearly 16m. it is 16m/ +-70m=rm0.22/share before the right converting. After the right changes to the original share, the profit becomes 16m/ +-93m=rm0.17/share. Year 2014, The profit is estimated 24m. 24m/93m share=rm0.25/share. the warrant will be exercise within 5 year. after 2017, there will be 117 m share. If the estimated profit maintain, 24m/117m share=rm0.20/share. The warrant exercise price is rm2.28. i believe it worth more than rm2.28 after year 2017.

Posted by msuhaims > 2012-10-26 06:55 | Report Abuse

Tq ping ping for detail explanation.

Posted by Namoyaki Takarajima > 2012-10-31 11:35 | Report Abuse

Another GOLD Mine that not to be missed!

Posted by KC Loh > 2012-10-31 11:44 | Report Abuse

Tin price I think starting to be wobbly now, namo

Posted by Namoyaki Takarajima > 2012-10-31 11:47 | Report Abuse

Yes KC, standby to grab the opportunity of the wobbliness of Tin.

Posted by KC Loh > 2012-10-31 11:53 | Report Abuse

I think some correction first for johotin. But then again, I am not a clever investor ....

Posted by Namoyaki Takarajima > 2012-10-31 12:03 | Report Abuse

wise investor is better than clever investor.

Posted by KC Loh > 2012-10-31 12:07 | Report Abuse

Both ain't me too! :)

I already selling most of my position in a pseudo-bull run! How clever or wise is that?

Posted by Namoyaki Takarajima > 2012-10-31 12:08 | Report Abuse

the uncertainty of Tin.
http://www.btimes.com.my/articles/20121027123640/Article/

Posted by Namoyaki Takarajima > 2012-10-31 12:20 | Report Abuse

Clever! Sell all to be back in a Cash-Rich position. Any Seagull that fly low in front of your eyes can be easily grab without hesitation.

Posted by KC Loh > 2012-10-31 13:02 | Report Abuse

but everyone is buying??... must be something wrong with me! how can everyone be wrong? :)

Posted by Namoyaki Takarajima > 2012-10-31 13:10 | Report Abuse

hahahaha KC! Something wrong with TIN not you. Pending lowest Q4/2012 TIN price forecast.

Posted by andy118 > 2012-10-31 13:31 | Report Abuse

KC you are right and everyone is wrong this time.

OR = 70 sen
subscribe = 128 sen
total = 198 sen
warrant cost = 198 - 160 (current price) = 38 sen

conversion price = 228
premium = 228 - 160 + 38 = 106 or 66%
for me the premium is too high. Either the warrant price will come down alot or the mother will go up alot. Most probably the warrant will come down.
Just my own opinion. Do you own analysis before deciding. Goodluck.

Posted by KC Loh > 2012-10-31 13:34 | Report Abuse

nah, i am exiting nowadays. market doesn't seem right for me anymore. just holding the few i think has the potential to climb despite the gloom if bear comes only!

Posted by sapurakencana > 2012-11-06 20:54 | Report Abuse

keep on collect when price down below 1.50(PE=9)as i believe the demand for dairy product will keep on increase when population go up (necessity product).I still hold my position 3 years ago until now.(Never sell even single share)

Posted by tonylim > 2012-11-06 21:11 | Report Abuse

Yea. But until kaki Assam liao
The only comfort is rights is price drop at rm 1.28 and one third warrants might give you 30 sen

Posted by tonylim > 2012-11-06 21:20 | Report Abuse

*buy
Ignore the word drop

Posted by KowChye > 2012-11-06 21:25 | Report Abuse

Good advice. Will start buying @RM<1.30.

Posted by tonylim > 2012-11-06 22:18 | Report Abuse

Kowchye, if drop to 1.30 we should sue the IB for pricing the rights at 1.28

Posted by stock5678 > 2012-11-06 22:25 | Report Abuse

don't think can sue la. luckily i wasn't purchase because of the bonus or right. 1.25 i will consider

Posted by tonylim > 2012-11-06 22:43 | Report Abuse

Ok la cannot sue but then major share holder hold so much rights share and the price go to 1.30 also cannot tahan ma. How to pay back to the bank.

Posted by moven00 > 2012-11-06 22:52 | Report Abuse

Usually after a Bonus/Right/warrant issue.....the shares won't go up any much.

It will rest for awhile until some sleeping forever. Unless you are blue chip companies.

My observation only ok.

e.g Cepat and Mflour.....High Target Price by banks or IB, Single digit PE....SO WHAT.....

My Opinion is the same of KC LOH, market is at High side. WHy not we wait and buy when KLCI runtuh/ durian Runtuh/ Mega Sales.
I might be wrong, but you guys dont believe market will drop....time will tell. CASH IS KING......NO money, market drop, your mouth open wide cannot do anything.

Posted by Kyran Chow > 2012-11-14 15:59 | Report Abuse

These two days show some buying interest...probably related to the upcoming quarterly report.

Posted by sapurakencana > 2012-11-14 22:18 | Report Abuse

Still remember i inform you all two week ago,collect if price close below RM1.50.with the PE less than 9,none of the investor willing to sell their position unless the upcoming quarter report is worst than previous quarter.I still withold my opinion that the demand for dairy product keep on increase,so the net profit can be expected!

Posted by fatty_tang > 2012-11-14 22:55 | Report Abuse

@sapurakencana: how you know demand for diary product keep on increasing?