Tuesday, October 16, 2012

Almost Time To Show My Report Card Again ^^

 
 
1. ARREIT - Sold more Arreit at 0.93 & some at 0.935. ^^ I hope to grab more at 0.92 if happen there is a chance. ^^ Look like it stand firm at 0.93 and above.
 
2. AMEDIA - Most actively traded again today. Though this is not my cup of tea but i reckon that the profit is consistent throughout the quarters and low PE, only set back is no dividend records. This guy does not fit into my investment criteria but look potentially high chance of making money at current state. Let's see once we factor BI in, Bonus ratio is 1 for 1, which mean to say its share capital will be double, that in turn will make PE high after BI, EPS will be diluted by half. Assuming same EPS contributed for the next year after BI, PE of 5 will be double at 10sen for a share price of estimated at 0.34/2 = 0.17. Seem relatively okay though. hmmmm. Good Luck All. ^^
 
3. GLOMAC - All resolutions were duly passed at today AGM. Which mean the 2.75sen dividend less 25% tax is approved as well. Will wait and see after this. Keep figure crossed on this.
 
4. Watch List - ARREIT, AMEDIA, GLOMAC
 
5. As year end is approaching, almost time for me to compile my investment result for year 2012 again. Frankly, i have yet to reach previous year earning but very near. Need to gear up more effort during these 2 months. :) ^^
 
6. Good Luck !!!

15 comments:

hng said...

Bought my last batch of Amedia at 33.5sen, just to make it slightly over 100k capital on it

hng said...

With today last purchase on Amedia, total 300k unit, average cost 34.5sen. Will hold on it for its corporate development, namely transfer listing, bonus and free warrant.

Teng said...

Hng

Finally bought more Amedia at 33.5sens. Average cost is 35.4 sens

hng said...

Teng

Soon or later, it will be our turn to laughing all the way to bank :)

Teng said...

Hng

Definately it will rebound

hng said...

Ha! itchy hand, bought more Amedia at 32.5sen

Teng said...

Hng

My worry is Amedia may have other issues that is not reported or announced by company. Hope it is not another Trasmile


hng said...

Double up my stake in Amedia, bought it all at 32.5sen, average down holding cost to 33.5sen. Portfolio reach ultra maximum

Teng said...

Hng

2 transactions of 5000 lots each from seller. Have to be patience until selling by these people ends

hng said...

Sold off all remaining YTL Power-WB at 42sen, realize paper profit and free up more margin line

hng said...

NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): COMBINATION OF NEW ISSUE OF SECURITIES ASIA MEDIA GROUP BERHAD (“AMEDIA” OR THE “COMPANY”) (I) PROPOSED BONUS ISSUE OF SHARES; (II) PROPOSED FREE WARRANTS ISSUE; (III) PROPOSED INCREASE IN THE AUTHORISED SHARE CAPITAL; AND (IV) PROPOSED AMENDMENT. (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)



We refer to our announcement dated 5 October 2012 in relation to the Proposals. All abbreviations herein shall have the same meanings as those used in the abovementioned announcement unless stated otherwise.

On behalf of the Board, TA Securities wishes to announce that the following applications have been submitted today:

(i) the listing application to Bursa Securities for the admission of the Warrants to be issued pursuant to the Proposed Free Warrants Issue to the Official List of Bursa Securities and the listing of and quotation for the Warrants, new AMEDIA Shares to be issued pursuant to the exercise of the Warrants and Bonus Shares to be issued pursuant to the Proposed Bonus Issue of Shares on the ACE Market of Bursa Securities; and

(ii) the application to Bank Negara Malaysia for the issuance of the Warrants to non-residents shareholders of AMEDIA and any additional Warrants to be issued in consequence of any adjustment to be made from time to time pursuant to provisions of the Deed Poll.

This announcement is dated 17 October 2012.

Teng said...

Hng

Announcement by Amedia is good?

I managed to get small quantity of Amedia at 32sens today

hng said...

Teng

Any corporate development need to be scan diligently by professional like investment bank before it could submit for approval.

The fact that TA investment bank only take less than 2 week to prepare all necessary document like auditing Amedia financial account to ensure there is enough retain earning and surplus to be capitalize for proposed bonus share is good indication. It show that Amedia have no problem to meet all criteria and is indeed capable to issue bonus 1 for 1.

hng said...

Teng

Although Amedia IPO is issue at 23sen on last Jan 2011, but if we take into account 1.5 year earning contribution (4Q 2011: 6.76sen + 2Q2012: 3.77 = 10.53sen), we should factor in these total EPS of 10.53sen into IPO price and make it just as total issue price at 33.5sen, which is about current share price.

In addition, Amedia also manage to raise 10% share via private placement at higher than current share price, in which it issue first 5% at 37sen and another 5% issue at 38.5sen

hng said...

Bonus shares – A positive sign.
by J Victor

WHAT ARE THEY?

Bonus shares are issued in a certain proportion to the existing holders. A 1 for 1 bonus would mean you get one additional shares — free of cost — for the one share you hold in the company.If you hold 100 shares of a company and a 1:1 bonus offer is declared, you get 100 shares free. That means your total holding of shares in that company will now be 200 instead of 100 at no cost to you.

WHO BEARS THE COST IF IT’S FREE FOR ME?

You are right. There is no free lunch.Bonus shares are issued by cashing in on the free reserves (accumulated profits) of the company.A company builds up its reserves by retaining part of its profit over the years (the part that is not paid out as dividend). After a while, these free reserves increase, and the company wanting to issue bonus shares converts part of the reserves into capital.So you do not pay; and the company’s profits are not impacted.

WHAT ARE THE EFFECTS OF A BONUS ISSUE?

Bonus shares do not directly affect a company’s performance. Bonus issue has following major effects.

1. Share capital gets increased according to the bonus issue ratio.
2. Liquidity in the stock increases.
3. Effective Earnings per share, Book Value and other per share values stand reduced.
4. Markets take the action usually as a favorable act.
5. Accumulated profits get reduced.
6. A bonus issue is taken as a sign of the good health of the company.

WILL THE SHARE PRICE CHANGE AFTER BONUS ISSUE?

A bonus issue adds to the total number of shares in the market.Say a company had 250 million shares. Now, with a bonus issue of 1:1, there will be 250 million shares issues. So now, there will be 500 million shares.This is referred to as a dilution in equity.Now the earnings of the company will have to be divided by that many more shares.(Earnings Per Share = Net Profit/ Number of Shares)Since the profits remain the same but the number of shares has increased, the EPS will decline.Theoretically,When EPS declines, the stock price should also decrease proportionately. But, in reality, it may not happen.

That’s because:

i. The stock is now more liquid. Now that there are so many more shares, it is easier to buy and sell.

ii. A bonus issue is a signal that the company is in a position to service its larger equity. What it means is that the management would not have given these shares if it was not confident of being able to increase its profits and distribute dividends on all these shares in the future.

CONCLUSION

Declaring Bonus shares is a sign that companies are increasing their profitability. If you look back, many companies have announced issues of bonus shares to their shareholders by capitalizing their free reserves . Shareholders have benefited tremendously, even after accounting the inevitable reduction in share prices post-bonus, since the floating stock of shares increases. So keep an eye on bonus history when you decide to buy a stock-It may be a good indicator that the company is healthy.

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