I feel there's not much downside. There's upside potential from a possible declaration of a generous dividend as it has so much cash/FD. There's also a chance that Lion Industries which already holds close to 75% taking it private.
lion ind can not delist lion posim without 90% control of the 66m shares they do not own. They must buy more than 90% of the free float. lion ind must pay more than $1.50? for others to give. NTA is MORE than $3 ?
There is little hope if you want to expect a dividend from this company. One can only hope the Big Boss makes this company privately owned at a price of RM1-RM1.50 per share. The big boss already owns 75% of the company's shares and only needs RM60-RM90 million to have RM250 million in cash as well as other assets which all amount to RM730 million. The probability of the stock price doubling is very high!
for big BOSS to take it private he has to get more than 90% of the free float . Will he get it cheap. Lion Posim is making profit and has a lot of cash. we the other share holders must fight to prevent the boss from taking it for a song.
i do not think whose who are still holding the shares are weak holders. Some are just playing with it.. IT is making profit and has cash. we as a group must not let THE BIG BOSS play us for his benefit. think as a group!
Due to settlement of secured debts of RM135 Million, cash on hand is RM242 Million. But the Market cap is only RM151 Million. Less volume trade now. I think small share holders will be fine even it is privatized at RM1.
Wonder quality of current assets. London biscuits immediately written off $300 m once put under receivership. Poor disclosure regime but authority and professional just silent or sleeping?
This time, steel price goes even than 20 days ago. Many steel counters has spiked up more than 10% this week. Lionind goes up with high volume, Lionpsim will follow soon.
Financially, Lionpsim is much more better than Lionind. Lionpsim is never losing money since year 2017. Now, Net asset per share is RM3.15. Due to high inventory of steel and other hardwares, Lionpsim profit is promising very good. In fact, the target of RM1.00 is still really low. I bet it will fly more than RM1.00.
Broke 2 resistances and largest volumes since end of February. LIONPSIM has successfully attracted new buyers due to uptrending steel price. With NAV RM3.15, Lionpsim can reach RM1.00.
Financially, Lionpsim is much more better than Lionind. Lionpsim is never losing money since year 2017. Now, Net asset per share is RM3.15. Due to high inventory of steel and other hardwares, Lionpsim profit is promising very good. In fact, the target of RM1.00 is still really low. LIONPSIM will fly more than RM1.00
Lion posim has good value at the moment. only 66m of free float, Off late there is a little volume play. Lion ind. used it to back other of its company. Now cash is back but they do not want to pay out to other share holders(66m). just hold like money in the bank.
For LION IND to take Lion Posim private , more than 90% of the other share holders must agree to it. Do you think at $1.50 it is a good price to give it up or it would be Like MBF holding. NTA is about $3.20????
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....
TheContrarian
9,497 posts
Posted by TheContrarian > 2021-02-26 00:13 | Report Abuse
I feel there's not much downside. There's upside potential from a possible declaration of a generous dividend as it has so much cash/FD. There's also a chance that Lion Industries which already holds close to 75% taking it private.