SELL before CalvinTan sells early in the Morning.!!!!! EGM even Call Monday will takes atleast a Month to Fixed. This a Hundred Cars accident on Highway...so mant vested interest...politician, GLC, and Large Investors....if your are ikan Bilis, you got No SAY
Reasonable price to take private but unfair believe analysts will say so, lol as minority is not able to do anything to protect their interest in a "fair" market place.
HLIB’s VIEW MO price is lower than our SOP-derived TP of RM1.39. We feel that the MO price of RM1.30/share (vis-à-vis our SOP-derived TP of RM1.39) does not reflect the improving near-term earnings prospects of the company (arising from rising CPO price since 3Q20)
This is a poorly managed company and has proven many times. Like what old folks said, even give them an iron monkey to play, they can kill it. Just look at the IPO years ago, what has happened. Pity those settlers and it looks like they are the innocent ones who gave back.
If I am not mistaken FELDA need more than 90% to force CO so I wonder how FELDA can achieve this 90% figures and why in the press they keep on saying its RM1.30 .
I'd run from this counter for a few months. I think a lot of investors here have never kept themselves up to date with how bad FELDA position is in right now, and probably never read the White Paper. Think rationally:
1. Debt-ridden FELDA won't be able to privatise FGV anytime soon with its dire state. In fact, after this 'takeover', FGV future earnings will now be siphoned back to FELDA to sustain itself. This is not a case of your typical privatisation. This is desperate, government-sponsored PR move. Stop fantasizing RM4, RM5, not only has FGV not achieved anywhere near this price since few years ago, FELDA simply cannot afford it.
2. There will be a period of limbo in which you will get no progress from this news. The anxiety is not worth the investment, the upside is so little, but things can easily crash. You can't even be optimistic about privatisation at higher price, because we all know that FELDA simply cannot afford. Feel free to raise the market price to RM3, because in the end FELDA will not be able to afford and will have to pull out, and everything comes crashing down. Worse if the government retaliate by putting obstacles on this already scrutinized company.
3. The government backing this purchase is founded on shaky ground. The next government/ election campaign will easily scrutinize this purchase at least as a PR attack. In fact, it might even be discussed a few days from now in Parliament. RM400m free money to help FELDA, and another funding round to help purchase FGV, totalling RM1bil, in the middle of pandemic? Other than that, any shit that hits FELDA's fan will also now be smeared all across FGV face too. The political storm is too great for this.
4. Think of the potential re-organisation deficit, which will affect earning. Not to mention potential board replacing that will disrupt operations. And if you think FELDA still has good candidates to put into the board to drive operations, I can say that you have been not up to date with FELDA's situation since almost a decade ago, this is a government agency that has managed to turn RM6bil cash into RM9bil debt in 2 years, and is still unable to recover until now.
5. Syed Mokhtar will not get a sniff on FGV. He is simply disliked in the current government, nor does he have any upstanding with the opposition. He is caught in a limbo, that I'm sure is no problem to him as a tycoon, but I'd be surprised if government allows him to get into FGV,.
Personally I have cut my profit today (I only buy FGV at below RM1 anyway), and there is a big chance it will dip below RM1 again, and stay there for a very long time. Anything can happen, this is my decision, I am simply offering you all a fact-supported opinions, not fantasy speculations.
@eddie it's true ma.. Where you wanna find a guarantee profit in market? 4% guaranteed profit.. 0.05/1.25 x 100 il= 4%. Beat fd any day any time at current rates. This case is buying at 1.25.
On the flip side, Affin Hwang said some minority shareholders would not find the offer appealing considering FGV's initial public offering (IPO) reference price of RM4.55.
MIDF Research deems the offer price as fair. This is mainly predicated on the prevailing higher crude palm oil prices.
Another Sapura ..don't ever ever touch any malay company ..how they manage how this can bring confidance to investors ... touted against facebook sold to many investors now all been played at their back
They are very smart when come to $$$. Who want to pay billion compensation for lease? Privatise just pay few hundreds million. Anyway, trading play on news.
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....
Miche87
156 posts
Posted by Miche87 > 2020-12-08 23:58 | Report Abuse
tonight cant sleep. tmr either rocket or waterfall