If Greatec has good growth potential within next couple of years, why not suggest to the boss to issue free warrants to shareholders at current strategic timing,so all shareholders can benefit most with in next few years including the founders of the company...Since they are major and substantial shareholders of the company..
Nowadays, those warrants bonus given free away counters; Its a 2 way extremely share price action.
Its going to accelerating the retracement in short ; only those one with highly growth and increasingly strong order book counters can continue mark higher after short term retracement post free warrant.
There are certain inveators that benchmark the ordinary share price by comparing to the exercise price of such warrants.
SO, IS IT STILL A GOOD STRATEGY FOR GIVING AWAY FREE WARRANTS ? OF WHICH, ALWAYS WELCOME BY UNKER ?
MY VIEW , IS A NO NO ; UNLESS U WANT TO DISTRIBUTE YOUR SHARE AND CASH OUT & NEVER LOOK BACK.
Warrants issued at strategic timing , means at the juncture when the company is set to have fast growth rate in next couple of years , like the present moment of Mi as it's new factory with 4+ times capacity has just been completed...Warrants issued at this juncture will serve as "weath accumulation tool" like what has already happened in Revenue Wa now, otherwise the issued warrant would be just as sweetener to shareholders only.
Mind you, the exercise price for Knm warrant is RM1.00 and the expiry date is in April next year.Unless the mother goes above RM1.00, the warrant is worthless.
During the press conference, it was pointed out that the IPO adviser screwed up by arranging for listing in the ACE Market at a ridiculously low IPO price. The share price rally comes as no surprise, even more so after the latest quarter results. The ACE market status means many institutional funds cannot invest in the company and this is actually slowing down the rally in share price. management also indicated that they will seek transfer to Main Board soon and this should be a key catalyst in the next year or so.
Against local players, the most comparable custom automation equipment player with high customer concentration risk would be Pentamaster Corporation; up to ~50-60% of Pentamaster’s revenue comes from a single Austrian-based sensor company which is mostly exposed to the smartphone segment. Trading at 16.3x CY19 P/E for 27% FY18-20 earnings CAGR based on consensus projection, Pentamaster is rated BUY with an average TP of MYR5.12 by two brokers based on a P/E pegs of 20.2x/17.7x CY19/CY20.
Today I managed to get on board into Istones which is a competitor to GTT at what I believe is a fair price. This will be my 4th addition of technology companies after MYeG, VC and GTT.
Hopefully this new addition will help to strengthen my Technology portfolios. Problem with technology stocks is that it's very turbulence however it has given me the best return so far in terms of Margin.
Coming to think of it, if it ever gets below RM 1, I will buy and accumulate.
Next is to wait for any more good news. If non, the closest we can get is the next Q Report..
Here's a recap
Market Cap: RM381 mil Shares Issue to sell: 119.750 mil shares (IPO 18.780 mil, Company Insider & placement 100.97 mil)
Business: Manufacture of Automated equipment & provision of parts and services for Solar, semiconductor, & consumer electronic sectors.
Geo Local: 10.01% Foreign: 89.99% (Vietnam 62.68% & USA 25.37%)
Past Financial Proformance (Revenue, EPS) 2018: RM219.582 mil (eps: 0.0627) 2017: RM93.914 mil (eps: 0.0376) 2016: RM22.703 mil (eps: 0.0115) 2015: RM21.393 mil (eps: 0.0111)
Industry Analysis (Asean 2012-2018) Global Solar Cell & Solar Module Production CAGR:27.4% & 27.4% Global Sales Semiconductor CAGR: 8.7% Consumer Electronic CAGR: 6.1%
Istones
Market Cap: RM195 mil Total Shares: 1.221 bil shares (IPO 61.074 mil, Company Insider/Miti/Private Placement 305.37 mil)
Business: Manufacturing automation business machinery & distribution of hardware & software.
Past Financial Proformance (Revenue, EPS) 2018: RM67.591 mil (eps: 0.0092) 2017: RM60.381 mil (eps: 0.0067) 2016: RM43.127 mil (eps: 0.0039) 2015: RM44.124 mil (eps: 0.0033)
Thanks @Mabel...i will definitely enjoy the Japanese culture, food, scenery and weather. All the best to ur investments...we're in the same counters here, KNM and Istones.
The reason why Greatec command a premium price is because the no of shares in Greatec is limited compare to Istones in addition to the above fundamental shared earlier, Greatec is planning to go for main board next year. Hence it has more upside...
Technology stocks collectively has been the best in terms of margin for me. . Hence as long as Greatec continues to perform, I plan to hold it. Right now it does not cost me anything to hold it and I'm looking forward for this counter to go for the main board. A good example is my Myeg... It has been one of my best investments.
If you have other considerations to put your money, my advice is to keep it until the next quarter. You need to give a chance for the company to grow and perform..
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....
Mabel
24,094 posts
Posted by Mabel > 2019-07-20 11:33 | Report Abuse
Like I said earlier.. Diamond will always be diamond. It's a woman best friend. Don't you go and sell your diamond and buy some stones..
You will never get your woman back.
All the best guys and gals!