1. Do you think Ekovest will fall from 50s to 15s?.
Stock market and share trading are not mathematical and engineering science. If you add 100 to 200 it must be 300 mathematically. Any other numbers are incorrect. You can drive a train at 300km per hour from KL and will reach JB in 1 hr 5 min and 40sec accurately. That is engineering science. Water will boil at 100 degree, not 99 and neither nor 101. In all these cases and many many more the outcome are known and expected precisely and accurately. This is engineering science.
3. Conversely, share trading is an art. Millions of people trade in the stock market and they buy and sell for thousand of reasons. The parameters that influence trading behaviors are huge, varied and uncontrollable. Some are consumed by greed, others are overwhelmed with fear. They are those who are irrational and impulsive, adventurous and risk seeking. Many are opportunistic and optimistic and some like Real is really pessimistic. Other factors include country and political risk. Sector outlooks and industry attractiveness company fundamentals and the list goes on.
4.Hence the outcome of a corporate exercise affecting share price are not known and expected or determined because share trading is not engineering science. For the same reason a proposal to reorganize , rationalize and merger of sister companies that result in a bigger entity with enlarged share capital in Ekovest may not necessarily dilute share price.
5. Notice that slightly more than a month ago, Ekovest issued 10% or 269m new shares at 43.5 sen to raise Rm117.27m and enlarged the share capital from 2690m to 2965m shares.
5. By conventional and REAL argument, the price must fall owing to share enlargement and dilution. On the contrary, following the fund raising and increase in share capital, price of ekovest did not dilute and fall . Instead it moved up from 43s to 50s to 55s and hit a height of 61s before it retracted and now building a strong base at 50s and above which is a far cry away from 43.5s. Why? Share trading is not engineering science.
6. Let's deviate momentarily and look at Capital A formally Airasia. During the covid years it lost more than RM7b and now has negative NTA of Rm2.01 per share and fell into PN17. Technically, the company has gone burst and insolvent. Again by conventional and REAL argument it should by down to 0.005s. Yet Airasia is hovering strongly at 80s and above. Why? Again, share trading is not engineering science. It is about investors' perception on the prospect and future of the company.
7. Now, the proposal has been accepted and TSLKH has a legally binding agreement and set it in motion. It is well received with excitement and anticipation. Hence, Ekovest falling from 50s to 15s is highly improbable.
8.In the unlikely event that it is sliding down manipulatively, you can be assured that there would be damage control and strike back. Look at it this way. When you have a new car you would exercise great care to prevent it from scratches. When you have a new house you would equip and secure it against theft. That is how much you would protect your interest and love your assets.
9.Now when he owns a company with billion of shares in Ekovest and someone is going to burn it down by program selling to plunge it from 50 to 15 sen, don't expect Tan Sri to sit still. You have touched a live wire. And it has consequences.
He will mobilize all his friends and cronies, advisors and experts, financial and resources and walk in the corridor of power and use all the experience and skill of a shrewd businessman to take you on and teach you a REAL lesson you would never forget. Prepare to be hurt. There will be broken bones and blood spilt figuratively.
10. In my layman opinion, it is safe to follow through the proposal, ride on the free wagon and profit from it. Happy trading 18/11/23
Trader 808 your example is issues 10% new share pay by cash is call capital injection. That is no effect because company get the cash of the share issue. But if issued 90% new share but non cash received by company is call investment to buy 1 TS personal company and 1 danga bay. That's is totally different. And we all know uems iwcity ekovest is goreng goreng up few cents drop few cents. Now Public Bank research is giving a sell call of uems with target price 0.42. Because the qr results not good. The goreng goreng is all nothing happened but base on news say johor johor good good but ekovest totally don't have any property project launching. If over goreng will become the top grove go high high drop high high. Until that day you will cry the company don't have any real development
Uems share price 0.79 public bank research give target price 0.42. Ekovest share price 0.50 I think target price is 0.25. Uems is profitable company but ekovest is making losses company
I wait after diluted 0.25. Now look like ekovest is roti kosong. Nothing good everything need to share 50% with more people. I want real develop with real project. Not the roti kosong all empty
RR should only be said that have no money to buy it. Can only scream. RISK8888 is no need to be too showy. If you think Ekovest has a future, just buy it quietly.
Risk888 roti kosong sale roti telur price too expensive and yesterday the big player sold already the quarter result come soon. They sold should be something earlier news they get
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....
Realrich
1,410 posts
Posted by Realrich > 2023-11-17 09:33 | Report Abuse
Let say if company earn RM1 previously need to share by 10 person but now need to share by 20 person how you feel your return is more or less?