Brother mikekong. The proposal of knm will have negative impact on the company share price. The purpose is actually essos to employees at par 50 cents. The 735 mil is only accounting entry. No new cash except exercise of essos will cause new issue shares at par value of 50 cent to employees. The essos will cause the no of shares will increase. Based on chart. This is downtrend stock. Better stay away unless u want to play swing
Companies with a large portion of foreign currency debt will likely be facing debt-repayment crunch as the depreciation of the ringgit against the greenback makes it costlier to repay foreign loans.
The ringgit, which has weakened by more than 11% against the US dollar (USD) since May 2013, may hurt the bottom line of some aviation, utilities and telecommunications companies if the mark-to-market losses on their financial statements are realised. As of Jan 20, the ringgit against the US dollar has fallen by 1.22% year-to-date to RM3.32. Now it is a hair’s breadth away to retest the 52-week high of RM3.33 on Aug 28.
Some companies in these sectors are among the three most highly-leveraged, having large foreign-denominated debts, especially in the US dollar. With the US dollar expected to gain strength for the rest of the year, companies like AirAsia Bhd, Maxis Bhd, Axiata Group Bhd and Malaysian Airline System (MAS) will likely feel the pinch.
While the weaker ringgit is a boon for local exporters, listed companies like AirAsia will be vulnerable.
Asian companies took out sizable foreign loans in recent years as the US Federal Reserve (Fed) kept interest rates low at 0.25% and implemented monetary stimulus programme to keep the economy afloat. With low interest rates, borrowing costs on the US dollar were more attractive than the ringgit.
Now that most expect the ringgit to continue depreciating, US interest rates will rise. With foreign funds slowly retreating from Asian bonds and other assets, it has sent Asian currencies diving lower against the greenback. This raises the cost of repaying and servicing in US dollar-denominated borrowings.
MULTIPLE PROPOSALS KNM GROUP BERHAD (“KNM” OR “COMPANY”) (I) PROPOSED PAR VALUE REDUCTION; (II) PROPOSED AMENDMENT; AND (III) PROPOSED ESOS (COLLECTIVELY, REFERRED TO AS “PROPOSALS”)
meena. good morning. mrcb can buy some. might jump start due to proposal of REITS listing. announcement this week or after CNY. TP by investment bank show above 2++(should be out in paper today)
Hepitrade as expected becos this week short trading period only 3 1/2 days no more players, low volume, investors r preparing & going back to their respective home towns to get ready to celebrate the CNY.
H - healthier global market O - Optimism in the equity market to continue R - Reposition in asset class S - Selective in investing for high return E - Emerging market the catalyst in 2014
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....
Posted by hepitrade > 2014-01-02 18:04 | Report Abuse
What say you, bro & sis ?