When it was at 0.90, i bought a lot. I have been loving Gadang for almost 3 years. Now I feel very dissappointex when thr management comes up with such funding decision.
The basis of this private placement is probably engineered to enable institutional investors to accumulate more shares. That is why they do not use the intrinsic value of the company but rather NTA. NTA will always show a value than intrinsic value.
As mentioned earlier, private placement got dick shit to do with intrinsic value of the company. Place yourself in the shoes of the institutional investors. Probably, during a "Teh tarik" session with Tan Sri Kok Onn, the you (institutional investors) and Kok Onn has come up with a predetermined funding number = X.
Hence, you want to achieve X with the maximum number of shares. This means that you want to be alloted with more shares than with less shares. With more shares , this will benefit you in terms of dividends and any future Capital management exercise such as warrants and bonus.
So, to achieve an X level of funding , this is P price x Q quantity. You want to have more quantities and not less.
We cannot compare this private placement with Air Asia because Air Asia is a private placement with the owners . it constitutes a different dynamic.
Honestly, if I got the funds, I will sapu more at this price since someone will press it even lower .
First they said no bonus issue in their AGM but later do PP with 1.85. Imagine what if they do right issue for all shareholder lets say RM2 when their share price is 2.50. I believe most of the investor are more than happy to subscribe. Another alternative will be ICULS, they do it before and can do it again. But instead, they choose to do PP with RM1.85 per piece which really destroy shareholder value. The only beneficial will be the management and the pp owner.
Ya I think so my broker got call me ask me want to buy or not haihzzz fking broker lah Last Monday I bought 30lot at 2.1 last Friday only tell me wanna buy pp price or not but the price is set between 1.9 to 2 .But he told me gadang current share price not steady to attract people buy pp price. So gadang must fly But I loss much la bro. 2.1 - 1.9 haihzzzzzz Sienzzzzzzz Bo huat la
who wanna buy PP if only got 8sen gross profit... minus transaction charges left with 6sen. need to wait dunno how many days, by then the price drop below 190 then loss money liao, kenot lali lintang-pukang some more
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....
77huat77
1,782 posts
Posted by 77huat77 > 2016-04-19 23:56 | Report Abuse
dont know still can trust this company or not,出尔反尔 if got chance sure complain but scare Agm haven't come the share price plunges already