Tien Wah today after market closed issued another statement about Fund Raising by issuing right shares at rm1/share.Investors holding 2 shares will be given the right to subscribe to 1 share at rm1 which is actually Tien Wah nominal share value.In the announcement they also mentioned the rm1/share is reached after a deep 55.46% discount to the theoretical ex right price of rm2.245 calculated from the rm 2.867 which was the 5 days vwap ending on 22/2/16.Further information please read the announcement in Bursa Tien Wah page
TienWah paid up capital is around 96 millions. Directors decided to call for a 1 for 2 right at RM1 each will only yield about 48 millions cash. Dividend declared at 14% will utilise at least 13.4 millions. Tienwah has about 70 millions cash as at 31/12/2015. I just cannot fathom the purpose for directors to declare right issue at this juncture. Is the company really needs money for expansion? I do not think so! Is the company trying to reward shareholders? This could be a possibility. Anyway, let us hear more from the Board.
http://klse.i3investor.com/blogs/TIENWAH/91852.jsp - please read this very well written article, then you will understand why you need to buy more and keep Tienwah for 6-8 months to profit tremendously. Trade at your own risk!
The right issue actually is the bonus or discounted share....next week will sure rebound strong as the financial Hse will go in as the price has been drop fr 3.26 to 2.79...all the negative seller gone.....is time to rebound
The 55% discounted right share of rm1/share from the theoretical ex-right price is actually the compensation for the share dilution.If one subscribe fully to all right shares alloted to him/her then there won't be any share dilution or changes in the percentage of his/her shareholding.
The outcome to the share price performance would be totally different if the 3rdQ results switched place with the current 4thQ.Most people will act positively to increase in profit and eps but not the other way round. It is even worse if asking people to fork out more money to buy more shares even though it is obviously good for long term investment.
Long term value investors buy low at low PER and sell high at high PER.Glitches and bumps in between this two only provide the opportunity to buy more at cheap price.
I want to quit market lah. Oil down, market free fall; now oil up, market also drop. KLSE everyday got few hundreds counters drop. How to invest like this? Good fundamental also drop so much.
Just bought it at 2.59........ will I regret in future?
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Posted by thesteward > 2016-02-22 21:25 | Report Abuse
hoh sheh :-)