@Apollo Ang, I believe BURSA Announcement is always the most and only reliable source for all news/corporate exercise of any listing company. Let BURSA do their work to gather all reliable and real information for small share holder like us ^.^
Share Trading (buy/sell) activity is normal at open market. I don't see any problem with that. As long as company fundamental still strong and business sustain grow. I will continue invest at Tomypak anyway. Don't focus too much at fluctuation of share price. Instead should focus at their business development. Hope it helps.
Eddie Lim is a business man I quite respect instead. I believe his experience can boost Tomypak to higher level. Let see whether Tomypak can "beat” Daiboci as mentioned by management team earlier :)
Notice of Resale/Cancellation of Treasury Shares can increase EPS directly. No really improve a lot but at least something :P Good job Tomypak management. It is a way "indirectly" reward shareholders.
Apollo Ang, about your warrants bought at today's high price, I think it's due to a normal profit-takings by warrant holders who bought them cheap earlier, because most short-term traders follow the rule of "SELL ON NEWS". If you are a mid/long-term investor, no worry, just hold your new purchase, and wait patiently.
See the Announcement Attachment yesterday, the existing warrants will also enjoy the same 2:1 share-split and 1:4 Bonus issue, and the new warrant's conversion price will be reduced from Rm2.29 to Rm0.93, although slightly higher (it should be exactly 92 sen?) due to roundup to nearest sen. So the warrant price should recover after the selling pressure go away and mother share's price continue to be on uptrend...
If you are share holders earlier, mother already up 30%++ and son already up 100%++. Buy on rumor and sell on fact :P Patient will paid your bill. You can average down if you believe Tomypak management and its expansion plan :)
directors or big kaki throwing a large chunk of the warrants at 85cts-86cts to retailers, next few days should be force selling, beware if market not improving
@Nobsinves, congratulate for your handsome profit :)
My point of view of some key finding for upcoming annual report of Tomypak. a. Total Revenue drop around 1.47% (From RM 214,099,000 in 2015 to RM 210,942,000 in 2016); b. Increase at Local market while decrease at Overseas market; c. Local Market contribute 47.12% Revenue vs Oversea Market contribute 52.88% in 2016; Local Market contribute 45.32% Revenue vs Oversea Market contribute 54.68% in 2016; d. PBT reduce 25.83% RM 23,210,000 in 2016 vs RM 31,294,000 in 2015 e. PAT reduce 20.46% RM 18,424,000 in 2016 vs RM 23,164,000 in 2015 f. ROE reduce from 18.40% in 2015 to 9.76% in 2016 (Share Capital and Reserves increase a lot in 2016) g. Shareholders’ equity increase from RM 125,921,000 in 2015 to RM 188,769,000 in 2016 h. Gearing ratio is reduce from 23% to 18%; i. Tomypak should be able to become Net Cash Company on 2018 onwards;
Main reason "cause" reduce EPS and PAT in 2016: 1. Expansion plan (Construction of a new factory building, Purchase of machineries, equipment and other ancillary facilities); 2. Foreign exchange gain; 3. Right Issue; 4. ESOS;
Cash and cash equivalents increase from RM 11,715,000 in 2015 to RM 30,906,000 in 2016. From business point of view, I'm happy with the management team's efforts to extend/grow the business.
Effect of Share Split and Bonus Issue for Tomypak (For illustrative purposes only): Assumed no. of Shares held is 1,000 unit and 5-day VWAMP is RM 2.50, Total Value RM 2.50; After the Proposed Share Split, no. of Shares held is 2,000 unit, market price per share is RM 1.25, Total value RM 2.50; After the Bonus Issue, no. of Shares held is 2,500 unit, market price per share is RM 1, Total value RM 2.50;
In short, Number of unit from 1,000 unit to 2,500 unit and share price from RM 2.50 to RM 1.00.
Effect of Share Split and Bonus Issue for Tomypak warrant (For illustrative purposes only): Assumed no. of Shares held is 1,000 unit and 5-day VWAMP is RM 1.00, Total Value RM 1.00; After the Proposed Share Split, no. of Shares held is 2,000 unit, market price per share is RM 0.50, Total value RM 1.00; After the Bonus Issue, no. of Shares held is 2,500 unit, market price per share is RM 0.40, Total value RM 1.00;
In short, Number of unit from 1,000 unit to 2,500 unit and share price from RM 1.00 to RM 0.40.
If we based on yesterday's warrant closing price at 75.5 sen, assuming this price for illustration only, after ex-date, the adjusted price of warrant will be 75.7/2.5 = 30.2 sen. Round down to next lower trading price, become 30 sen after ex-date.
About Tomypak's 315,000 Treasury shares, actually the Company has sold them all in the Open market on 6.4.2016 the next day after the multiple proposals, at average sale price of Rm2.301 per share. The Company made a small profit of (2.301 - 1.598)x315000 = Rm221,445.
Although the 315,000 units of Treasury shares is a small no., but the sell off is beneficial to all the shareholders, because:
1. Company made a tidy profit of Rm221,445, and get Rm724,827 cash from the sale. If they cancelled the shares instead, it would make only tiny effects on the share base and EPS,
2. If the treasury shares are retained, it would cause the share split and BI exercise to result in odd lots for all the shareholders, as the final ratio would become 1 : 2.4990526508 instead of simple ratio at 1 : 2.5. If the ratio is rounded up, it would cause some shareholders to get more share units while others would get less. Nobody wish to get less...
3. If the final ratio is at 1 : 2.4990526508, the warrants conversion price would be adjusted from Rm2.29 to 92.035 sen, rounded up to 93 sen, and the ESOS price would be adjusted from Rm1.50 to 60.023 sen, rounded up to 61 sen. In both cases the holders must pay +1sen/share, this would be unfair to the warrants and ESOS holders.
4. The complicated ratio at 1 : 2.4990526508 would create too many odd lots with funny no. of units to all the shareholders, with much more administrative headaches in future.
So the Company made a wise decision to sell them off and solved the problems.
At FY15Q4, Tomypak resold 330,900 units of its own shares at an average price of RM2.37 per share in the open market of Bursa Malaysia for a total consideration of RM782,121. The gain from the resale of treasury shares have been recorded in the equity account of the Company.
Chart is not weakening, if see the announcement earlier on the 6th April, huge selling due to company selling there earlier buy back (taking profit), and we can see a support on the next day, RM2.20. Price will be consolidate.
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....
pc_FA
604 posts
Posted by pc_FA > 2017-04-06 17:25 | Report Abuse
@Apollo Ang, I believe BURSA Announcement is always the most and only reliable source for all news/corporate exercise of any listing company. Let BURSA do their work to gather all reliable and real information for small share holder like us ^.^