HLBs write up is half past six.... n awangngah i m afraid u r wrong.... my man
While.. damned if d LA is redeemed is obvious...
It seems to me all around here has not a clue of d impact if d LA is not redeemed
If u r thinking of buying d LA now at 1.45 thn happily convert it to d mother n sell at 1.75... n in d process making a tidy profit.... think again
Do u all know d number of LA issued by Barakah?!
Let me tell u.... it is 208,000,000... 208 millions
So...... do u get it now??
No.....
Ok........ let's assume u know d number of shares issued by Barakah now is 624,000,000....... now add d 208,000,000 new shares from d conversion of ur LA......... CAN U IMAGINE D DILUTION IN EPS tis is going to cause?? It wil b a freaking 25%...... as d share cap wil thn balloon to 832,000,000
So..... as d EPS is diluted.... d mother's price wil b hit by a reduction of 25% to 1.31... ie 1.75 x (100-25)%
Down to 1.31... but hey u hv bot ur LA at 1.45...
n so oh yes .... damned too if d LA is not redeemed
But of cos d one suffering d most wld b those who bot d mom.... 25% loss to b exact...
I feel won't be doomed. If Barakah secure Saudi contract, barakah mother would reflect upward. Besides, not everybody will convert to mother shares immediately, so no immediate dilution.
JCool's statement is if all of RCULS holders opt to convert instantly. In reality, that would not be that case that everyone will convert. If you believe in the company's future prospects, then conviction should be to buy or hold. If otherwise, sell would be better.
Btw, if the company's future earnings prospects are good in the long run, should not be worried too much about dilution, as the "E" in the EPS will move in tandem or higher with the "S".
Maki.... jz think a bit ok.... if u r a holder of d LA... wld u want to wait n let other holders of d LA convert first b4 d dilution so tat they can sell at 1.75...... n u b d last to convert n sell at 1.31?
About the LA please back to LA discuss. Who are believe on Barakah counter can just continue stay. if who are worry please just sell it out, don't try to disturb other supporter at this forum. Thanks
Caven101: just a discussion here. Don hv to be harsh. This forum is for us to discuss either positive or negative. We all hv the right to rise our question
nicky i just want to mention this is discussion for Barakah. cause too much sharing which is out this counter. last time got one post is talking about HIBISCUS PETROLEUM BHD at here....that will very confuse for us.
2 sen down on thin voume is not bad. Probably indicative of investors staying invested for the time being with an expectation of another run up in price.
Eventually RCULS will dilute Barakah mother shares. Nothing wrong to share about Barakah RCULS here to potential or existing investors
In fact, it gives more information to investors as it creates awareness. Freedom of posting belongs to anyone. It is how you assimilate the information that matters.
Tis redemption thingy.... has great impact.... n is gonna happen in jz months..... not years
While HLB is betting thr wil b no redemption....
MBBs stance is rather unclear... as it has not mentioned tis redemption at all..... so either its stance is...
thr wil b redemption.. as such.. no dilution.... n thus..... in total disagreement wit HLB...
Or..
in d worst case scenario...... it has missed d redemption thingy..... n hv not factored in d dilution in EPS.... tis can only means its TP of 1.98 is grossly overstated by 25%... or shd in fact b jz 1.48....
Tis is specificaly dedicated to u.... caven... to u n ur dictatorial tendency..
@kimtj: Be frank, what do you hear about this counter and why do you recommend a buy call? And, how do you know sale in February? Sound like you know something behind.
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....
psd57
2,314 posts
Posted by psd57 > 2014-01-13 10:08 | Report Abuse
Creatin base at Rm 1.75 before uptrend. Same pattern . 2014 Rm 3.50 to 4.00. Stay Invested and enjoy the ride