Saturday, August 30, 2014
Pre-merdeka sales : Ecoworld and Armada
I have been out the whole-day ... with running nose, and needing to rest soon ... but I will like to check on some of the stocks I do like to re-trade as there are some merdeka sales going on ... so, I will use some of my time to check on the latest news related to these companies.
Ecoworld : Support RM4.50, closed RM4.69 now. I have traded her and the last time I sold was slightly above RM5, but it went to RM5.40. Ever since that multiple cooperate-exercises announcement ... it DIVED from high RM5.80 level.
24th APRIL : Suspension for announcement
ECO WORLD DEVELOPMENT GROUP BERHAD (FORMERLY KNOWN AS FOCAL AIMS HOLDINGS BERHAD) (“EW BERHAD”)
(I) PROPOSED ACQUISITIONS;
(II) PROPOSED SHARE SPLIT;
(III) PROPOSED SHARE SUBSCRIPTION;
(IV) PROPOSED RENOUNCEABLE RIGHTS ISSUE TOGETHER WITH FREE DETACHABLE WARRANTS;
(V) PROPOSED PRIVATE PLACEMENT; AND
(VI) PROPOSED AMENDMENTS TO THE MEMORANDUM AND ARTICLES OF ASSOCIATION.
Target Prices : RM7.60(CIMB), RM6.24(AMMB), RM6.59(Maybank) and RM6 (Alliance).
Now, we need to THINK ... it is under-valued? To me, Ecoworld is playing on future-news ... how Liew & gang could turn Ecoworld to become another SPSetia? Personally, I will prefer SPSetia (buyg should be below RM3, when Liew was leaving in April). So, Ecoworld is tradable ... we can profit from Ecoworld's price fluctuations, being a trader ... but not to hold for ... err .. long term? Long term is 1-3 years in my definition.
Armada : Closed at RM2.95, with the right-issue announcement recently.
Bumi Armada: Prices rights issue at high discount. Bumi Armada‟s rights shares have been fixed at RM1.35 a piece, which is a 32% discount to the theoretical ex-all price (TEAP) of RM1.98 per share. Based on this issue price, the rights are expected to raise gross proceeds of RM2bn. The rights shares will be issued on a one-for-two basis, involving up to 1.48bn shares. There is also a bonus issue of up to 1.48bn shares, also on a one-for-two basis. Bumi Armada‟s exercise is expected to be completed by the 3Q of this year. This is Bumi Armada‟s first rights issue since its listing in 2011. The RM2bn proceeds will likely be used to fund the group‟s huge capex pipeline. Bumi Armada currently has a tender book of some RM25bn. (StarBiz)
IPO : Bumi Armada debuts at RM3.65 for 62 sen premium over IPO price. So, the IPO price was at RM3.03.
Then, it is trading below its IPO at the moment!! This that a discount? If anyone been holding Armada at IPO below, and did not take profits (HIGH RM4.44 ... die-die-die), then should we be going through the exercise, pumping in more funds into her, believing in investing into the company? Afterall, it has HUGE order book?
OUB's target price : Bumi Armada’s 1H14 results came in below our and consensus expectations, accounting for merely 37.0% of our and 32.2% of consensus full-year estimates. That said, Bumi performed better on a qoq basis, bolstered by contributions from its Eni 15/06 and Kraken floating production, storage and offloading (FPSO) projects. We retain our forecasts and re-iterate our BUY recommendation on the stock as we anticipate a better 2H14. Target price: RM4.00
Website : http://www.bumiarmada.com/1/Web/Home/Home/Home.html
We need to do some works on the biz, the share holders and much before we decide to invest in the company, and putting in more money into a company. Are we investing ... in the future of the company? Dividend-wise, it is definitely not in that category. So, to put money into her and averaging it down(assuming we are holding at IPO value), we really need to believe it will do well, in the future. PER at 20+, it is not "cheap". But, I do not really believe in taking PER as a good yardstick.
This is the weekly chart, to show the huge selling volumes for the past 3 weeks. Last week was the highest as I believe it is the end-of-month selling(by EPF). As a trader, I m seeing this as an opportunity to collect ...
Using technical, I will try to catch the knife ... and wish me luck. See if I will get burnt.
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Next postings : Plantation : JTiasa (KYY's stock).