super penny stock only for those bravely steel heart to play with... truely gambling scene as one could be high gain or one could be hard lost just by a single change price...!!!!
monetary, what to worry for the reputable upstream profitable O&G company! If RI, i plan to Sailang all my belongings till underwear to subscribe all the RI and those shares not been subscride ! *P/S: Actually we can subscribe the shares more than we being allocated on RI, There got one name or term for this call what i forgotten already, I know this coz i previously got bought more what i allocated for RI before... And when the share price spike up to the moon, you will really Jia Bui Liao !
I modified a bit on my calculations on HHGroup for ICON
Assuming yr cost of Icon is RM0.05
After 50 into 1 shares consolidation yr cost will be Rm2.50...then after ex rights issues of 175 for 1 at Rm0.06 (capital outlay RM10.50) the mother price likely will be adjusted to ard Rm0.07.
I think the massive rights issue will be under subscribed due to 400%+ extra funds needed to be pumped in...thus for anyone who wanna bet on Icon may find it cheaper to buy OR then
Bsides, the rights issues is mainly to raise fund to pare down co debts...the outlook is still sucks
Btw, the number of shares will be balloned from 1.177B to 5.573B upon completion of the whole exercise (rights issues/debts restructuring n warrants conversion)....
I dont understand what u meant...it u want to go thru the rights issues u need to fork out additional 300% fund for it...or else u will suffer heftly losses in yr mother shares after ex rights issues...alternately u can sell yr OR if u dont want to susbsribe the rights issues
The best hope now is that boss will goreng with mbb's tp n catch some waterfish here who believe this is a reputable n profitable oil n gas co n then more money (400%) fm waterfish for the coming rights issues...
Felt can't wait the RI to announce... i already fork out 1000% of the capitals to subscribe all my RI and also apply as much as possible the Excess ! Hopefully can get all the Excess that i apply!
@ CharlesT I dont understand what u meant...it u want to go thru the rights issues u need to fork out additional 300% fund for it...or else u will suffer heftly losses in yr mother shares after ex rights issues...alternately u can sell yr OR if u dont want to susbsribe the rights issues 23/11/2019 9:18 AM
What is OR?
What happens if I don't want to subscribe to the right issued?
What happens if I want to subscribe to the RI? Can't I just stick to my current Mother shares?
Best entry price is 0.015 prior RI. Look at the recent transaction, retailer not many. Only left to right hand to lure retailer. Wanna make fast profit, don’t against the operator. 0.005 profit sell ASAP.
A rights issue is an invitation to existing shareholders to purchase additional new shares in the company.
In a rights offering, each shareholder receives the right to purchase a pro-rata allocation of additional shares at a specific price and within a specific period (usually 16 to 30 days). Hence we need to see what will be offered to us.
Shareholders are not obligated to exercise this right.
Cash-strapped companies can turn to rights issues to raise money when they really need it.
Sometimes, rights offerings present disadvantages to the issuing company and existing shareholders. Shareholders may disapprove because of their concern with dilution. The offering may result in more concentrated investor positions. The issuing company, in an attempt to raise capital, may find that additional required filings and procedures associated with the rights offering are too costly and time-consuming; the costs of the rights offering may outweigh the benefits (cost-benefit principle).
So if it is not good we can oppose this RI Offering
Until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares. The rights issued to a shareholder have value, thus compensating current shareholders for the future dilution of their existing shares' value. Dilution occurs because a rights offering spreads a company’s net profit over a larger number of shares. Thus, the company’s earnings per share, or EPS, decreases as the allocated earnings result in share dilution.
As a shareholder, you have three options with a rights issue. You can (1) subscribe to the rights issue in full, (2) ignore your rights, or (3) sell the rights to someone else.
"Cash-strapped companies can turn to rights issues to raise money when they really need it." So, you want to be the "banker" instead of being the investor?
What makes you think that they can fulfill their promises? Are you a fan of KYY who advocates buying any company which shows 2 positive quarters? Or, is it because the dirt cheap price and hoping for an instant spark to cash on later, like a punter?
OSV sector has bottomed; U/G to BUY 1H19 core loss came in below (worse) than our loss expectation, due mainly to deferred taxes in 2Q19. Otherwise, it would have met our expectation for operationally breaking-even in the quarter on higher OSV utilisation. Coupled with an improving operating outlook, the recent weakness in share price post its restructuring plan is an opportunity to BUY. Hence, we upgrade Icon to a BUY, on an unchanged TP of MYR0.085, pegged to 10x 2020 PER, equal to its 5-year mean valuations.
Icon reported a core net loss of MYR2.7m, which was skewed mainly by higher taxes of MYR6m (138% effective tax rate) due to under provision of tax at one of its subsidiaries (MYR3m) in prior years. That took its 1H19 core loss to MYR11m, which was worse than our FY loss estimate of MYR3m for FY19. Excluding the impact of the deferred taxes, Icon registered a core pretax profit of MYR5m in 2Q19 after six consecutive quarterly losses on improved OSV utilization (50%; +4% QoQ).
Maybank has raised our FY19E net loss to MYR8m from MYR3m to incorporate the higher taxes (+MYR5m) but are keeping FY20-21 profit estimates unchanged. We are encouraged that it made profit at a 50% OSV utilisation level. Again, the key driver of the turn from loss this year to profits the next two is lower interest expense and higher OSV utilization
We remain positive on Icon’s recent debt restructuring proposal to recapitalise its balance sheet. While the planned restructuring exercise will result in a massive enlarged share base (+110%), its proforma net debt will also de-gear substantially to 1.1x (from 10x now), which will result in MYR18m p.a. savings in interest expense. The recent weakness in share price (-41%) post the exercise (unveiled 10 days ago) has priced in the dilution risk, in our view. With its OSV operations turning around, a successful implementation of this deal is a re-rating catalyst. An uptick in DCR is another catalyst, which we opine will materialise soon following a similar recovery in the offshore drilling space.
One of Malaysia’s largest OSV providers; dominant in AHTS and AWB with a relatively young fleet (7 years). Vessels are Malaysia-flagged and will be able to capitalise on the stringent Malaysian cabotage rules. Icon is going through a challenging macro environment, as it faces bottoming of DCR but gradual recovery of OSV utilisation. Returns outlook is improving but the pace of recovery will be gradual, backed by its continuous efforts to optimise costs and OSV utilisation. M&A action is a key catalyst to unlocking values.
Icon Offshore: Wins RM36m contract from Petronas Carigali. Icon Offshore has secured a RM36m contract from Petronas Carigali SB to provide an offshore support vessel for petroleum arrangement contractors’ production operation. It said the contract has a firm period of 695 days, expiring on Aug 1, 2021, with extension option of “one year plus one year”. Icon Offshore managing director Datuk Seri Hadian Hashim said as the industry recovers, the group hopes to secure more contracts through delivering value-added services to clients. (The Edge)
The possible gameplan now for the strong shareholders for such a reputable n profitable oil n gas co is to goreng few cents higher so as to trap some waterfish n subsequently for their 400% fresh money in the rights issues...
@CharlesT Who is icon's strong shareholders? Fm ipo rm1.85 to rm0.045 now....so strong ah??
Current price has been factored in. Turnaround at operating level
OSV sector has bottomed; U/G to BUY 1H19 core loss came in below (worse) than our loss expectation, due mainly to deferred taxes in 2Q19. Otherwise, it would have met our expectation for operationally breaking-even in the quarter on higher OSV utilisation. Coupled with an improving operating outlook, the recent weakness in share price post its restructuring plan is an opportunity to BUY. Hence, we upgrade Icon to a BUY, on an unchanged TP of MYR0.085, pegged to 10x 2020 PER, equal to its 5-year mean valuations.
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longvalley
2,287 posts
Posted by longvalley > 2019-11-21 18:15 | Report Abuse
Gd move.....