Hmmmm even posts in investla is positive about this oounter. Look at the latest sentiment. Everyone is happy that all is going as pplanned. All gearing for new concession announcement :-)
Ya, absolutely agree to hold and hug tight tight, as exploration and production is a medium to long term play. Lime will be working on seismic program which will improve asset value. Drilling program to start later this year = > potential of high escalation of value in event of oil discovery, like Prince just said.... "Jackpot: !!!!
Agree. Their jv with Lime was a pretty good move. There will be three catalysts coming for the stock: 1) the upcoming acquisition of another significant oilfield 2) the listing of Lime on London exchange, which in effect allows buyers of Hibiscus to be in the position of pre-IPO investors at a good price, likely to be done sometime this year 3) striking oil, highly likely given Lime advance drilling technology and method(the Lime group had their pick of whichever oil fields they wanted based on their reputation and technology expertise in the past)
Crude Oil hit USD108 on 23Feb, should Lime strikes oilfield soon & Iran issue is unresolved, crude oil may go USD130-140 again, by that time, those who hold Hib shares will be like orang Cina Hokkien cakap "Ciak-Bei-Liao" ... = Eat Cannot Finish
The warrant can only be exercised upon EGM's approval of acquisition. Investors' may fear if EGM not gone thru, then HIB may drop significantly; as the guaranteed amount is only RM0.675. (before another proposal to submit to SC for apporval) EGM will sure bulldoze thru the shareholders' approval with either by vote or polling, as the business model is synergistic & the potential is great. Once approved on 21March, the discount will narrow, meaning the surge in value in warrant will be substantial, as compared to HIB. I added position in its warrant this morning !!! Hold & Hug tight tight......
Go n buy a thick metal chain now and chain it up tight tight!!!!!! Than lock it up in the steel cage!!!!!! Than when I retired only take it out!!!!! Wakakakakaka!!!!!!
then you will be loser because it will expire. hahaha. some more, nothing is possible and impossible. Do not love your stock. Market always there. These are what i always heard
Agree with voon. Mother has stabilize and potential for upside. Hold or buy more. Which means the only way for son to move is up up and away H will soar again
This morning BFM interviewed Benny Lee of Nextview and he commented that Hib rebounded strongly and with the crued oil hitting high, he is bullish on Hibiscus and Petronas Dagangan.....
Yes,the smart investors are bullish about the long term potentital of this counter.
To princeofthie3ves :
From Hibiscus website on the conversion of son:
Key Terms: Warrants-A
1 free detachable Warrant-A for every share held. Exercise Price RM0.50 per Warrant-A.
Listing Warrants-A is listed and tradable. Expiry Date 3 years from listing date (25 July 2011)
Exercise Period Anytime during the period commencing from and inclusive of the date of completion of the Qualifying Acquisition up to and including the Expiry Date.
Any Warrants-A not exercised during the Exercise Period will lapse and cease to be valid (up to and including 24 July 2014).
By March 21 - TP for mother is RM2.50 and son to follow at RM2.00 (minimum).Son has catching up to do as AFTER the EGM, anyone holding the son can CONVERT to the mother by paying extra 50 cents. Now the son is very undervalued as many people afraid if the EGM fail and cannot get approval from shareholders but this is not going to happen. Most shareholders will vote yes.
Saturday March 3, 2012 Tycoon Arumugam raises stake in Hibiscus Petroleum By TEE LIN SAY linsay@thestar.com.my
PETALING JAYA: Reclusive tycoon Tan Sri A.P. Arumugam has increased his shareholding in Hibiscus Petroleum Bhd from 6.4% to 8.8% via an off-market deal, said sources.
On Wednesday, four million shares were transacted at an average price of RM1.78, while yesterday, another 6 million shares were crossed at the same price. The stock closed on Friday at RM1.80 on volume of 2.69 mil shares.
Arumugam first emerged in the company last July when his son Roushan Arumugam was announced to have bought 23 million shares or a 5.5% stake in the company.
Back then, he made the indirect purchase via Littleton Holdings Pte Ltd, of which he owns 90%. While no price was disclosed, it was believed that Littleton took up part of the placement of Hibiscus' initial public offering shares at 75 sen.
Roushan, is a director of Hibiscus and a corporate representative of Littleton and investment holding company, Sri Inderajaya Holdings Sdn Bhd.
Arumugam is the chairman and founder of Sri Inderajaya, which has significant investments in six major industries globally and consisting of agriculture technologies, consumer products, education, industrial technologies, property, telecommunications and travel and tourism.
Meanwhile, Hibiscus got the green light from the Securities Commission on Feb 16 to proceed with the acquisition of the 35% equity stake in Lime Petroleum plc for US$55mil (RM168.3mil) cash.
Hibiscus will be holding its EGM on March 21 to obtain approval from its shareholders for this qualifying acquisition.
Lime has three oil and gas concessions in the Middle East Ras Al Khaimah, Sharjah both in the United Arab Emirates (UAE), and the largest one in Oman, with the fourth potential concession in Fujeirah, also in the UAE. Each concession is for 20 years.
Hibiscus, which is Malaysia's first special purpose acquisition company has a protection clause for its shareholders.
Under the protection clause, shareholders voting against the qualifying acquisition at the EGM will be able to receive about 90% of the initial public offering price of 75 sen, or 67.5 sen per share plus interest and less distribution costs.
However, as the company's last traded share price of RM1.80 is 165% higher than the refund amount, such protection clause is a redundant option for shareholders.
Submitting Merchant Bank : HONG LEONG INVESTMENT BANK BERHAD Company Name : HIBISCUS PETROLEUM BERHAD Stock Name : HIBISCS-WA Date Announced : 29/07/2011
Instrument Type : Warrants Description : Three (3)-year 2011/2014 Warrants
Listing Date : 25/07/2011 Issue Date : 21/07/2011 Issue/ Ask Price : Issue Size Indicator : Unit Issue Size in Unit : 334,436,522 Maturity Date : 24/07/2014 Revised Maturity Date : Exercise/ Conversion Period : 3.00 Year(s)
Revised Exercise/ Conversion Period : Exercise/Strike/Conversion Price : MYR 0.5000 Revised Exercise/Strike/Conversion Price : Exercise/ Conversion Ratio : 1:1 Revised Exercise/ Conversion Ratio : Mode of satisfaction of Exercise/ Conversion price : Cash Settlement Type/ Convertible into : Physical (Shares)
Remarks : Each Warrant shall entitle the holder to subscribe for 1 new ordinary share of RM0.01 each in Hibiscus at the exercise price of RM0.50 per Warrant at any time during the period commencing from and inclusive of the date of completion of the qualifying acquisition up to 3 years from the date of listing.
2012, Bursa Malaysia Berhad. All Rights Reserved.
Qualifying Acquisition is scheduled to be voted on during EGM on the 21st of March. Once approved, thereafter, warrants can be exercised at price of RM0.50. Currently it is undervalued and has a premium of 36 sen. A pretty good discounted buy by any measure.
If mother move up higher, this counter should move more as after March 21, anyone can convert the son to mother anytime. Already 30 cents profit today.
Still can buy, minimum target is RM1.50 up to RM 2.00 before March 21, 2012. See today, major collection at RM1.06. Mother easily will reach RM2 very soon
I also hope it can reach RM1.50 by next week, but the fact is, if the Mother remain at RM1.80 then the son can only reach RM1.30 max based on 50 sen exercise price........
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....
TTRR
9 posts
Posted by TTRR > 2012-02-24 08:32 | Report Abuse
Hmmmm even posts in investla is positive about this oounter. Look at the latest sentiment. Everyone is happy that all is going as pplanned. All gearing for new concession announcement :-)