Opportunity to buy Pestech next week. Speculators/Traders are confused, thinking that it's a "tech counter" and joined in the selling. In reality it's more of a power company plus railway-related business.
Private Placement up to 10%. Existing shareholders will be negatively effected as it is dilutive and not given the chance to take part in the PP unless you are the "right" persons. Warrant holders will be negatively affected too as no adjustment to exercise price although PP shares are issued at a discount.
Private placement is a cheaper and faster option. If it can generate more revenue, it will compensate the dilution. Don’t look at everything negatively, look at the positive side. Or u want a rights issue where you need to fork out more money?
Prefer RI as I can also buy shares at discount, wouldn't you. PP shares issued at discount can be a quick guaranteed profit for the chosen subscribers for they can short first and then replaced by cheaper shares from PP. One more thing, the subscribers, unless insiders or major share holders, are always kept secret from other share holders.
Bursa already switch on the green light for all listing company to issue PP since 2020 pandemic and should be end on 2021, but now extend to end of 2022, last year already had hundred over company sapu 8 billion+ through the PP(excluded 2020),estimate 2022 also PP 8 billions, so 2020 till 2022 all together PP is 20 over billions, many company after PP their share price fall more then 80% some even more then 90%+. so, PP had helping listing company get extra nearly ten billion per year but look like bursa choose to ignore after PP the share market infact had more then ten billion become toilet paper...
Share price may go lower further as the new shares to be issued via PP are at 55 sen only. Pestech should have chosen to issue new scripts when the stock price is high, not when it is very low as currently is. Good for the chosen ones that will subscribe but at the expense of the rest of us.
joilintai , mrt project back in 2017....no worry malaysia can do wonder. Najib and Zahid can walk around ....this one can easily no case. Also never mention who is the director.
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....
Mat Cendana
2,331 posts
Posted by Mat Cendana > 2022-01-14 18:12 | Report Abuse
Opportunity to buy Pestech next week. Speculators/Traders are confused, thinking that it's a "tech counter" and joined in the selling. In reality it's more of a power company plus railway-related business.