Thursday, August 9, 2012

What You Get If Holding 1000 Kris Assets Shares ?



1. RCECAP - Bought in at 0.47sen. I am not recommending this stock, my way of trading this stock is simple. I am striking for quick scalp gain here not intended for long holding, so comrades please don't follow if you are looking for big gain. I think RCECAP will be due to declare 1.5sen dividend either tomorrow or next week couple with 1Q result. Earning half sen to 1 sen should not be a problem. :) ^^

2. KASSETS - Wow !! garner 18sen today :( I just gone through the proposal and i extracted the below :-

Meaning if i hold 1000 KASSETS shares, first i will be giving distribution units of IGB REIT 5240 shares, secondly i will get back some cash of RM2431.94.
Which mean if i buy KASSETS now at RM8.95, after offset the cash that i get back ( 8950 - 2431.94 = 6518.06) and divide by the no. of distribution units RM6518.06 / 5240 = RM1.24. Every IGB REIT will cost me RM1.24. The indicative IPO price is at RM1.25. Save 1sen here. ^^ :) Look like not a bad deal after all. Is that so simple ??

3. Watch List - WCT, OSKPROP, RCECAP, KASSETS

4. hng, congratz on you WCT-WB. :) ^^

5. I just received my dividend on WTK and BJTOTO. :) ^^

100 comments:

tcg82 said...

hng & all
congratz n welcome onboard wct/wct-wb
added wct-wb 0.29 last week & 0.30 today
wct am expecting 2Q12 next week (maybe tue/wed/thu), hopefully with 5sen div
wct here's a crazy idea; seriously should follow the crowd to put together paradigm & aeon bkt tinggi, and list as reit; definitely a price spike catalyst like kassets haha

hng said...

horse

You're right, my last 2 days calculation have error state as 5.42 x 1.25 + 2.43= 9.20

It should be 5.24 x 1.25 + 2.43 = 8.98

But, still is cheaper alternative way when Kassests was trading at 8.74. That why, i advice you to buy kassets directly since you wanna to' Sai Lang '

However, today market already quick closer up these gap.

hng said...

tcg82

It is still premature for WCT to inject its properties assets to REITs to enjoy lower corporate tax as it still in the midst to develop more Mall and Hotel.

Currently, WCT only own Aeon bukit Tinggi, Premier Hotel, klang, latest Paradigm + coming next year Gateway in KLIA2 + future 2rnd Premier Hotel in kelana jaya + another new Mall + 3rnd Premier Hotel in OUG.

I think by 2016, when all these newly added mall and hotel ready + exiting investment properties, it will be ripe for WCT to form its own REITs, namely the WCT-REITs.

Teng said...

Feeling good waking up this morning after reading news Pandelela won bronze medal in diving.

Derick said...

Hng

Congrats for your Faber. :-)

Teng said...

Double congratz to Hng on Faber and WCT. WCT mother look good

hng said...

Teng/Derick

I still holding all my stake in Faber, WCT and WCT-WB. Waiting to realize big quantum leap of profit

hng said...

Teng

WCT really need decisive breakout its immediate resistance level at 2.55 and stay above these level as support for next upswing to 2.80

hng said...

Teng

Due to last week panic sell down of WCT-WB, warrant holder are more caution and it need time to absorb shock before it can comfortably follow its mother share movement.

Teng said...

Hng

Agreed.

Long term prospect for WCT is bright. Another Gamuda in the making?

hng said...

Derick/Teng

As previously write up, the reason i like Faber especially at low price is the risk already mitigated by the fact that Faber is in net cash position, 72sen/share or 55% of current share price is in the form of CASH! In addition, dividend also at 8sen, give rise to yield of more than 6%

Nonetheless, the major risk still remain its ability to secure extension of its IFM concession However, by just looking at its status as GLC, control by PNB and LTH, is will just a matter of time to iron out new T&C and charge rate to be finalized for renewal.

hng said...

Teng

WCT unlike Gamuda have less political link. WCT is able to secure large oversea job contract without help from local political support. Therefore WCT compared to Gamuda is less susceptible to political risk.

hng said...

horse/Teng

PWROOT remain very strong, despite some hiccup yesterday, down to low at 82sen, which i thought it could break below 80sen after ex-dividend and give opportunity to buyback upcoming 2rd OLDTOWN.

PWROOT swing back to high above 90sen level, hopefully it will take no time to adjust back to below 80sen level.

hng said...

horse

Kassets at 9.25 above its theoretical value, which i think investor already start to give premium to upcoming IGB REITs from 1.25 to 1.30

Teng said...

Hng

Pwroot at current level is no longer attractive,at least from point of DY

Teng said...

Hng/Horse

IGB shareholder also entitled to IGB-Reits?Annoucement by IGB that 8IGB-Reits for every 100 IGB share

Teng said...

Hng

Correction.Pwroot DY still ok.I thought they pay dividen once a year,actually is twice

hng said...

Teng

IGB shareholder are entitle to 'SUBSCRIBE' IGB REITs at IPO price of 1.25 based on entitlement 8 for 100

hng said...

Teng

PWROOT dividend at 4.5sen, work out to be 5% nett yield. However, with 50% in EPS and in net cash position, it is likely dividend also increase by 50% from 4.5sen to 6.75sen, or yield of 7.5%

Teng said...

Hng

So it is not free for IGB shareholder,but kind of 'pink' form like in early years?

hng said...

Teng

I think so, but invest in IGB also stand a chance to received bumper dividend if management like to reward or compensate shortfall of IGB shareholder compared to those windfall profit from Kassets shareholder

hng said...

I just manage to convince my sister to invest in Faber at 1.34

Tay SK said...

I was wondering why people would be buying ABOVE the value of 8.98 for KASSETS. Why give it a premium when IGBREIT at 1.25 is only giving indicative yield of 5.1%? i scare there is not much upside to the igbreit price anymore. Frm my knowledge, the capital repayment will take place within 6 months so your 25% capital will "locked in" without earning money if buying at a premium. I note that the distribution in specie may take up to a month frm listing date to be completed. Please correct me if wrong. :)

Teng said...

1MDB is buying Genting Power unit value at RM3.5billions. Will 1MDB offer to buy YTLPower's power unit?Maybank research said it is part of government effort to take over 1st generation IPP which is due by 2015 and 2016

Teng said...

Tay

Those who buy Kasset is 'guranteed' of IGB Reits. I guess this is the only advantages. Those who apply from IPO,you mayy not get all. But applying IPO may have another advantages,final price may be lower than 1.25,depending on institutional price. Normal IPO has this practice but I am not sure for REITS

Tay SK said...

I was wondering why people would be buying ABOVE the value of 8.98 for KASSETS. Why give it a premium when IGBREIT at 1.25 is only giving indicative yield of 5.1%? i scare there is not much upside to the igbreit price anymore. Frm my knowledge, the capital repayment will take place within 6 months so your 25% capital will "locked in" without earning money if buying at a premium. I note that the distribution in specie may take up to a month frm listing date to be completed. Please correct me if wrong. :)

hng said...

Tay SK

Market sometime irrational,overvalue or undervalue happen every minute. No surprise, investor are too eager to be shareholder of IGB REITs irrespective of its yield, like what had happen to pavilion REITs, yield below 5% still OK to them.

Teng said...

Craziest thing I had ever seen in stock market was in 90s. Warrants was traded above its mother.

hng said...

Teng

I didn't know 1MBD buy over Genting Power, is that true? At 3.5b, for total how much capacity? It is include Genting China power assets?

IMBD already bought Tanjpng Energy for 8.5b, whcih not only Msia IPP but also include power assets from oversea generating total capacity of 3,951MW.

YTL power have much larger power capacity, including Singapore, Sanyang and Indonesia, i think total capacity is over 4.500MW,

Tay SK said...

Hng & Teng.
You have your points there. Btw ytl been risin steadily.

Tay SK said...

1MDB alrdy stretched financially by buying Tanjong. How are they going to finance Genting Power. Wow, add in ytlpowr to that.

Teng said...

Hng

You can go to Maybank research,or this link http://klse.i3investor.com/blogs/kltrader/15594.jsp

Don't think YTL will sell overseas power unit.IMDB is only interested in Msia IPP esp 1st generation

Maybank report did not say this is rumor or confirmed but seems to me is confirmed

Teng said...

Tay

Guess 1MDB will issue bond/Sukuk to finance acquisition

hng said...

Tay SK

IMBD is 100% Government own company, nurture by PM. It is easy for them to raise fund for acquisition through issue bond/sukuk, afterall all these issue will be guarantee by Gov and EPF have single out as ready buyer.

hng said...

Bought YTL Power WB at 57.5sen

Teng said...

Btimes-News reports said 1MDB is also eyeing Jimah power plant in Port Dickson owned by the Negri Sembilan royal family.

No YTLPower's power unit?

hng said...

Teng

I think Jimah power is third generation power

hng said...

WCT momentum remain strong, keep trying up

Gark said...

But the WB got no momentum..hehehe running in another direction.

Gark said...

Hope the WB catch up with the mother share...:)

hng said...

Gark

As i said before, due to last week panic sell down of WCT-WB, warrant holder are more caution and it need time to absorb shock before it can comfortably follow its mother share movement.

hng said...

WCT well done, at 2.55, please keep up work

Don't worry about WB, soon or later your daughter will for you

Gark said...

No problem hng.. I am in for the long term anyway. :)

Faber looks good as well.

hng said...

Gark

Lets 'Huat' together

hng said...

Gark

You should be happen now, someone just buy at 31.5sen with 484lots, already unlike those pushing 1 lot by 1 lot

hng said...

Just said that, people already start take profit on 31sen :(

ck5354 said...

Faber’s 1HFY12 net profit made up 47% and 56% of our and consensus’ FY12 forecasts. The numbers matched our estimates as we anticipated a stronger showing in 2HFY12, especially from its property division. We maintain our forecast and Trading Buy recommendation, at an unchanged FV of RM2.34, based on a 10% discount to our SOP valuation. Despite the prolonged delay in renewing its hospital support services (HSS) concession, we hold firm to our view that a renewal is forthcoming given Faber’s vast experience and good track record.

hng said...

ck5354

Which research house target price price for Faber ta 2.34? Its 73% upside to target price ! Perhaps it could reach only if Faber secure concession agreement in near term

hng said...

ck5354

Faber is still currently absorb profit taking from yesterday buyer. After which, i think Faber should be able to at least stay above 1.40

cheeheng said...

hng,

follow u bought into Faber@rm 1.30 yesterday.This one can easily go rm 1.50 or higher.will buy more if price weakens.Btw the rm 2.34 target price is by OSK RESEARCH...:)

Gark said...

Genting Sanyen's Kuala Langat gas fired power plant capacity is 720MW.. and if based on the purchase price of 3.5 billion by IMDB.

Then price = RM 4.86 Mil/MW

YTL Power have 1,212 MW at both Paka and PG. Then the valuation is RM 5.89 Billion?

Based on latest annual report, the earning from both these power plant is about RM 350 mil/year. So IMDB is valuing the power assets at P/E of 16.8 times.

Interesting...and YTLPWR is selling at P/E of ~12.

Govt's way to bail out all the 1st gen IPP's since they are due for expiry?

hng said...

Gark

Don't care about gov bailout or wanna to pool all power under 1MBD, just need to wait concrete news out, YTL Power soar, reap profit, exit before GE.

Teng said...

CK/Hng

RHB has TP of 1.62 for Faber

hng said...

cheeheng

Faber yesterday price at 1.30 already consider low enough for me to jump in without think its Q2 result also just release in time to further cushion downside risk. In addition, Faber net cash72sen/share and dividend yield 6% added more support

hng said...

Teng

It is interesting to note after merger, what will the TP from RHB+OSK, which one have upper hand, or just take average with Faber TP at 2.34 (OSK) + 1.62 (RHB) = 1.98 (RHB+OSK) :)

Teng said...

Hng

At least both has buy calls.Will be very embarassing if one has buy and another call for sell

hng said...

Teng

OSK today rebound a little after conclude EGM date on 24 Aug

Teng said...

Hng

I am still waiting for right time to buy Faber.Seems 132/3 is strong support now

hng said...

Teng

I've no more margin left, portfolio now pack full of stock.......

ck5354 said...

i am interested too - faber. too bad the mplus not yet ready. Have been follow tightly with mplus. Why so slow to open an account?????

Teng said...

Hng

YTLPower-WB now 58.5-59.0. I really miss 57 yesterday. I was having meeting but with notebook in front of me

hng said...

Teng

WB movement depend on its underlying share, i too waiting to sell at 59.5sen

Teng said...

Hng

Last week YTLPower and WB went opposite way. Mother was down but WB traded higher( where I sold mine at 60 or 61).I bought back in 2 batches,58.5 and 59

hng said...

Teng

YES, it could be exceptional case, happen occasional as market is not 100% rational. However, in general though there is close correlation between warrant and underlying share, especially with those warrant with low premium

ck5354 said...

just got my CDS account going to OSK now to sign for transfer hopefully monday i can trade

Teng said...

Hng

Yes.Horse was lucky to sell his YTLPower-WB for profit. It was last minute buy that push up WB

Teng said...

Hng

CIMB's TP for Faber is 2.34 as well,same as OSK

hng said...

Teng

Have you buy Faber yet?

Teng said...

Hng

Very close already.I queue at 1.32

Teng said...

Hng

Done.All match at 1.32

hng said...

Teng

Lets hope these is last batch of selling and Faber about to rebound

Teng said...

Hng

Those bought yesterday may probably slowly selling next monday and tuesday?

What happen to E&O? active and up >30 cents

hng said...

Teng

the legal case may have outcome, Sime need to extent offer to minority E&O shareholder?

Teng said...

Sold all WTK at 1.19 today.Yesterday only managed to sell 3,000 share

hng said...

Teng

have you selloff your WTK today ?

Teng said...

Hng

EO-One blog said court ordered deal to be cancelled.But my friend told me it is MGO now,which is more likely

Teng said...

EO-CA-From 0.5 cents jump to 20 cts at one time.Really huat

Teng said...

Hng

Go to themalaysianinsider.com. It was not court decision,but SC now order Sime to offer GO to EO. If this is true,Sime will have to pay RM2.30 for EO shares

hng said...

Teng

I bet MGO!

All E&O shareholder must thank these Singapore investor for his determinant to bring these unfair deal to the court. Well done at least at these moment:)

hng said...

Teng

If that is the case, all E7O shareholder must thanks to these new Singh CEO of SC

Teng said...

Hng

I think at this time,GO news is not confirmed

Teng said...

Hng

The Star reported that its position on GO in Sime-E&O unchanged.So it is now up to court decision

hng said...

SC's position on GO in Sime-E&O remains unchanged


KUALA LUMPUR: Sime Darby Bhd does not have to make a general offer for the remaining shares in Eastern and Oriental Holdings (E&O) after it acquired a 30% stake, according to the Securities Commission.

The SC said in a statement on Friday that its position on the GO requirement in the Sime Darby-E&O acquisition remained unchanged as per the statement issued on Oct 11, last year.

"The decision is now subject to judicial review which is pending in court," the SC said.

Securities of E&O surged in active trade late Friday on a news portal report that the SC would now order Sime Darby to make a GO for the remaining E&O shares.

E&O surged 42 sen to close at RM1.90 with 44.74 million shares done while its call warrants E&O-CA jumped 16c to 16.5 sen.

In the Oct 11 statement, the SC had stated it concluded the review of the circumstances surrounding the acquisition of 30% equity interest in E&O by Sime Darby for any Take-Over Code implication.

The SC had then stated in the course of the review, parties involved in the transaction were interviewed and relevant documents procured.

It said the review included an assessment of possible concert party relationships between and amongst the parties involved. Precedents in Malaysia and practices and rulings in other jurisdictions on similar issues were also examined.

"Having analysed all the evidence gathered, it is the SC's finding that the acquisition of the 30% equity interest in E&O by SDB had not given rise to a mandatory offer obligation under the Malaysian Code on Take-Overs and Mergers 2010," according to the statement.

hng said...

Teng

What is that mean? Sime Darby Bhd DOES NOT have to make a general offer for the remaining shares in Eastern and Oriental Holdings (E&O) after it acquired a 30% stake, according to the Securities Commission

"Having analysed all the evidence gathered, it is the SC's finding that the acquisition of the 30% equity interest in E&O by SDB had NOT given rise to a mandatory offer obligation under the Malaysian Code on Take-Overs and Mergers 2010.


-Negative News to E&O shareholder-

hng said...

Securities of E&O surged in active trade late Friday on a 'NEWS PORTAL' report that the SC would now 'ORDER' Sime Darby to make a GO for the remaining E&O shares.

E&O surged 42 sen to close at RM1.90 with 44.74 million shares done while its call warrants E&O-CA jumped 16c to 16.5 sen.

- Positive news to E&O shareholder-

hng said...

Conclusion, shareholder overreact to unconfirmed so call portal news report that SC have such power to 'ORDER' Sime to offer GO to E&O shareholder at 2.30!?

Those follower must well prepared to jump ship next week

hng said...

I think SC should investigate whether there is market manipulated purposely release such news and make other to push up share, especially call warrant.

hng said...

Below is so called 'portal news report'

SC to order Sime general offer for E&O, say sources

KUALA LUMPUR, Aug 10 — In a volte face, the Securities Commission (SC) will now order Sime Darby Bhd to make a general offer for Eastern & Oriental Bhd (E&O) shares after buying a 30-per cent stake last year, say government sources.
The Malaysian Insider understands the decision was made after a review by the leadership under new SC chairman Datuk Ranjit Ajit Singh.

“The SC has reviewed the matter and decided to overturn the earlier decision made when Tan Sri Zarinah Anwar was the chairman,” a government source told The Malaysian Insider.

Ranjit, who was the SC managing director, took over as chairman after Zarinah ended her term last March 31.

Another source confirmed the review and said the decision will be made public soon.

Sime Darby purchased its controlling 30 per cent interest in the property developer from three major shareholders — managing director Datuk Terry Tham, Singapore’s GK Goh Holdings and a group of investors led by businessman Tan Sri Wan Azmi Wan Hamzah — at the end of August last year in a deal that valued E&O shares at RM2.30 a piece.

The purchase price represented a 60 per cent premium over the value of the shares in the company on the open market when the deal was announced.

The RM776 million deal triggered unease over the widely-perceived coddling by the agency of large state-controlled companies at the expense of minority shareholders when exercising its authority on corporate takeovers.

The SC ruled six weeks after Sime Darby’s purchase of the three blocks that the plantation-based conglomerate need not make a general offer, prompting E&O minority shareholder Michael Chow to sue the SC for failing to compel Sime Darby to make a general offer for the rest of the shares.

The legal suit has renewed debate over the SC’s handling of alleged irregular trading activities and had put pressure on Zarinah, whose husband — the E&O chairman — had raised his personal stock holdings in the company just weeks before Sime Darby announced the acquisition.

The SC has also filed an application to recuse the judge hearing the suit as he used to be with the regulator. But the judge dismissed the application, only for the SC to file an appeal with the Court of Appeal, which heard the case yesterday.

Singapore’s Straits Times reported last January that a SC task force found that Sime Darby was obliged to make a general offer for E&O shares after acquiring a 30 per but was superseded by the regulator’s top ruling authority.

The daily reported that the task force was of the view that a general offer obligation had been triggered as a new “concert party” was created between Sime Darby and Tham, who jointly controlled more than 33 per cent in the property concern after the deal.

Malaysia’s takeover rules stipulate that any party that acquires more than a 33 per cent interest in a publicly-listed entity must carry out a general offer for the remaining shares.

A general offer can also be triggered if a new party buys less than 33 per cent but secures management control of the target company.

But the SC’s final ruling three-member committee adjudged “in a majority decision” that there was no general offer obligation as Sime Darby and Tham were not acting in concert, according to an affidavit by the agency’s second-most senior commissioner Datuk Francis Tan, which was sighted by the Singapore daily.

The committee also accepted the task force’s recommendation that the three groups that sold the blocks of E&O shares to Sime Darby did not collectively control the company and that the disposal did not trigger a general offer.

Teng said...

Hng

Next monday,EO call warrants must lari kuat kuat.

People listen to rumors without seeking any truth in it

My ex boss bought Idris ( or another company) in 90s after someone told him Idris would buy over StandChart bank LOL

hng said...

Teng

It is hard to resist and it make people to believe especially the rumor was packed with fundamental sound and information about the reason of turnaround decision making, the new CEO of SC

hng said...

SC denies volte-face, probing Sime, E&O trade

KUALA LUMPUR, Aug 10 — The Securities Commission (SC) has denied changing its decision on the Sime Darby-E&O general offer (GO), saying this evening that there is a pending judicial review on the matter.

In a two-paragraph statement, the regulator also said it was investigating any trade in the two counters that was triggered by The Malaysian Insider’s report.

“As stated in our earlier statement, there is no change to the decision of 11 October 2011 pertaining to the Sime Darby-E&O general offer (GO) and there is a Judicial Review which is pending in court.

“The SC has begun an examination of the trading associated with the relevant counters arising from the rumour,” the SC said in the statement.

The Malaysian Insider had quoted sources who said the SC is to order Sime Darby Bhd to make an general offer for Eastern & Oriental Bhd (E&O) shares after buying a 30 per cent stake last year.

It was learnt that the decision was made after a review by the leadership under new SC chairman Datuk Ranjit Ajit Singh.

Teng said...

Dear All

I received letter from Bursa saying my account has no transaction for nearly 3 years. They will deactivate my account Sept3,2012.

Question-If I do not reactivate my account,can I still receive dividends?

I don't know why my wife account is not affected( maybe letter on the way).Or treasury shares( from YTL) consider transaction?

Teng said...

Hng

How is your Cambodian maid?

My mother in law maid back to Indonesia and now refuse to come back. Maid agency sent two maids but nowadays maids do not want to take care of elderly

hng said...

Teng

I thought you are active trade recently? or perhaps you have other dormant trading account with other investment bank. I didn't come across such thing. I also have trading account with former Southern bank securities which later take over by HLBank investment bank. No trading long time, and have yet to take any action.

I also have bank account with Magnum Finance, later change to Multipurpose Bank and Subsequent to EON Bank, now change to HLBank. Actually have few hundred in that account and still keep Magnum Finance account book, but previously try make withdrawal in EON Bank, even there have my record but the money already frozen and need to go to Bank Negara for withdrawal. Until now, yet to take action :(

hng said...

Teng

My Cambodia maid perform so far so good, just recently allow her to TT money back to her husband, US$300 to buy motorbike...

Teng said...

Hng

This 'inactive' account is InterPacific which I used to trade >15 years ago until 2009. Brokerage fee is too expensive 0.6% or min RM40. Buy a stock of RM1 and price up 2 cents also make very little money

Teng said...

Hng

This inactive account is direct account( my Maybank is nominee account).Called my remisier,and she did not answer. She may have quit now because very few people use remisiers services

horse said...

Teng,

My OSK account also being disabled.
I still received my dividend until today. I guess only trading account is disable but the trust account still active.

horse said...

hng,

Your WCT looks very promising. ^^ :)
You sure huat a lot this time. ^^ :)

I also buy into Faber at 1.32 ^^

Sold all my RCECAP at 0.475. ^^

Will make my post tomorrow.

Teng said...

Horse

Good.I don;t have to do anything.

I already signed up e dividend for this non active account.

Actually I like nominee account esp when comes to right issue application. Just let investment do everything for you( maybank charge RM12 fee).If I apply my own,have to buy banker fee( RM5 fee),stamp??

Related Posts with Thumbnails