sigh, what la, dulu mama stayed put, son kept getting pressed all the way down to 0.150. today mama no more up, son pulak goes up to 20 sen... why play me like this la... Am i alone? :(
Accumulate. Black Scholes method is about 31sen (For info only). Accumulate because OCK's tower biz is materialising. Agreement sign in mid Dec 2015 (RM323m), rights issue (RM132m) completed at late 2015. Premium fluctuate between 8-12% (i have seen some with 50-100% premium but the mother share upside is not very attractive), with 4.5 years tenure, risk reward is POSITIVE.
According to the analyst, the private placement (PP) of 10%, will be used for acquisition of brown field towers in Indochina. Let's assumed they raise RM60m from PP, loan another say, RM140m (30:70), total capital = RM200m.
Another assumption, if the rental yield is 10%, the total return is about RM20m (before interest and tax). We give it a PE of 15x, after interest and tax, say RM11m, this will add in another RM165m into the market capitalisation. Return on equity is 11/60 = 18% p.a. (further improve its margin and sustainability of the company). The return will comes in immediately as it is a brownfield project. (The company trade debtors is about RM230m, if collected, can use to reduce loan or for remaining Myanmar project). As long as the debt is productive, it is ok.
At 24 sen, it is reasonable with most analysts gave OCK a value at about RM1.00, the warrant at 10% premium will be about 32 sen. A 33% upside or more. Just a view. Not a buy, sell or hold call.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3249 views | 3 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Jiah Chee
132 posts
Posted by Jiah Chee > 2015-12-22 19:41 | Report Abuse
any idea?