Wow, 1067 people Q to buy Resort at 2.00 amounted 50K lots.

Being thrown all in once when nearing 4.45pm?

Need to calculate how much dividend they can give, less than FD then surely no.

We might see uglier financial report in the next Q across the listed company

May be weekend got free time, calculate it out and study a bit its financial report as well as its long term price trend. No rush, no rush.

Your chart show around 1.68-1.70 is a good entry point.

This post has been edited by cherroy: Mar 6 2009, 04:55 PM

Actual trade price back 1998 was around Rm5-7, didn't have it so don't quite remember precisely, roughly around that price range so adjusted for 1:5 split become below Rm1.00.

Whatever shark or whales, big or small, all are wounded across. Stop thinking big shark are smart and know the future. They are wounded as bad as others as well.
Remember Temasek bought Merrill Lynch, and some others soverign investment fund bought into Citibank?

Any company come out with significant losses from operation business, except those big shark or anyone can see the silver lining and high potential company financial can turn around in the next year or 2, nobody can assure anything nor can proper put a valuation on the company.
NTA, cashflow can be wiped out dramatically if continue to report massive losses.

Especially for those political linked, those company financial result generally turn quite drastically and ugly during economy bad time. Just based on experience during 1998.

No mean to comment on Zelan. Just to highlight that currently whatever company that report significant losses with draining cashflow, market is very cautious and fear.

Cheers.

Maxis being privatised at around Rm15 if not mistaken.

Your won't lose money in the privatisation process, they will acquire the share from you at a price, but if your initial buying price of the share is higher than privatisation price then you will lose the money even though the company has good future.

Privatisation process is not be a surely smoothly process, if offer price too low, shareholders might not agree to sell their stake, eventually privatisation won't be succeeded.

Yup, for normal and well managed company, the company doesn't bother the share price of the company, it doesn't affect the company business operation at all, except company need to raise capital through right issue etc.

It is very difficult to secure finance backing from banks for privatisation in current situation. Even for the like Airasia is not able to secure financing for its privatisation as reported previous. So even though share price is low which enable to privatise it cheaply, but financing is the most problematic part for those interested to do so.

Immediate potential privatisation target is Resort. Because Resort is holding significant amount of cash and with significant positive cashflow from operation each year, those privatised it can access and utilise the cash for their own usage which amounted 4 billion +
But Resort price tag won't come too cheap, as even at Rm2.00 and with share issued of near 6 billion, they need to come out 12 billion or more, because if they offer 2.00, I don't think they will succeed. So any amount below 15 billion, don't think privatisation can easily be taken place.

The incentive for Genting to privatise Resort is accessing its cash position, 4 billion + and annual cash generating around 2 billion currently. While those borrowing from privatisation deal could be 5 or 10 years down the road issue.

Normally major shareholders have incentives to privatise it which I can think of
1) Doing something drasctically to the company which in normal circumstance won't be getting approval from existing other shareholders. Maxis is the example

2) Doing something that will hurt existing shareholders benefit (like Genting want to tap Resort cash), which could catastophere to the share price eventually affecting major shareholder's share collateral value for borrowing.

3) Share price value too low, and privatising party got plenty of cash, taking in privately now, and relist it later might earn big buck for them, or the company profit is lucrative enough to generate return to them.


There is one word, too big to fail.

The situation is something like, if you own TNB a couple of hundred dollar or thousand, without paying after due data for 2 months, they will come to your house to cut your electricity. But if you are a steel maker which own TNB billions of dollar, they don't dare to cut at all, they will come to negotiate with you, and suggest plan for term payment etc.

So next time, when you owe someone money, then you must owe them big until they scare of you default it. Haha. Joking only.

If AIG or other big commercial banks in US and Europe fail, the vicious cycle wave is simply to big to be handled by any gov, even public has nothing to do with them, but their saving in banks (not necessary with them as well), also in jeopardy because now all especially financial market are inter-related.

Cannot done in this way (major shareholder say yes, in fact it doesn't related at all), under the KLSE listing rule, they must own more than 90% before mandatory offering or privatising can be taken place aka whether you agree or disagree, they will only forcefulllly acquire shares from you after reaching this level.

Privatisation is not about voting in the company EGM, it is about the acceptance level received by the privatising party. Every shareholder even with 1 share is entitled not to accept the offer until reaching mandatory or forcefullly acquiring stage.

The worst situation for privatisation deal is acceptance level between 75-90%, because it the major shareholders hold more than 75%, it violate the listing requirement, it will be delisted, while it doesn't reach the level of forcefully or mandatory acquiring.

No, Par value is just mean the initial capital/money with fully paid when the face of share issued. When company goes wrong, it doesn't mean anything at all.
As if company really goes wrong, they are negative equities already, aka money left nothing with negative NTA.

Simplicity, I set up a company with 1 million capital (cash), then I issued 1 million of Rm1 (par value) share, the 1 million cash is utilised into buying company asset worth 1 million, so my NTA also at Rm1.00, so afterwards the asset and business grow or shrink, doesn't related to the Par value anymore.
Par value is more an accounting purpose, and doesn't reflect the real situation. The real situation of comopany worth is those asset company owned aka NTA.

This post has been edited by cherroy: Mar 8 2009, 07:14 PM

At best, it is a temporary effect, after all the market is due for some technical rebound after steep drop in recent weeks.
It doesn't solve the fundamental problem of the financial instituition at all.

Changing accounting standard, (mark to market) and try to give the financial instituition a breath, is not much different like your class student all getting less than 60 point passing mark, but in order to let them pass, you lower down the passing mark to 50.

We always learn from each others.

Don't need to ban short sellers, restore the uptick rule is enough to lower down the market volatility.
Uptick rule prevent them to sell when the stock is on continous down situation which at least it is the real sellers are pushing down the market, while it only allows them to sell, when price is moving up.

Short seller means they are short, they are the one responsible for violent upside as well, not only downside.
It just means they are making the market become volatile in both way.

Short sellers will be scrambling to cover their short if market really turn and economy start to improve.

This post has been edited by cherroy: Mar 9 2009, 10:17 AM

If the company is valuable, no one is stupid is pushing down the price in order to acquire at low price, as pushing down the price in the open market, you open the chance for others 'sapu' those stocks, remember, stock market is not them alone, they are plenty of other investors and tycoon can 'sapu' the stock in the market, if they spot ultra super low price of the stock.

If indeed there is some purpose pushing down the price, basically they are risking themselves only, not a wise move if the stock is actually valuable.

Current scenario is either panic selling, margin selling, or some major investors in the company stock are pessimistic and forsee company making significant loss in the near future.
Huaan is the good example, it is trading significant low and at huge discount to its NTA while with no borrowing, but stock price continue to slide down, because company is making significant loss which could wipe out its cash and NTA.

My opinion only.

There is no such thing of reference price, it depends how much the interested party willing to offer.

Wow, STI is making new low for this decade.

We have new round of fresh downward fear and sprillaring effect now, prepare your shield and armour.
Roller coaster coming again, so prepare your ride, it could be a quick ride to the downside which market searching for bottom. May be some temporary real bottom could be found this time around.

Pbbank follow the footstep of HSBC yesterday.

All people in the world are scare of holding financial stocks.

Pbbank should at least drop to 6.xx or even lower in line with global financial stocks valuation.

This post has been edited by cherroy: Mar 10 2009, 09:55 AM

No, mainly because yesterday HSBC plunging to around 33.00 somemore last minute with huge volume, one of the world well capitalised banks also people dumping, there is no reason why Pbbank should trade lot of premium compared to others.

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Added on March 10, 2009, 9:58 amAnything related o financial is toxic now.

This post has been edited by cherroy: Mar 10 2009, 09:58 AM

Investors start to panic now after seeing even the like HSBC also being dumped, they want instant result and effect, while stimulus effect won't be seen after 3 months or 6 months later, in fact a lot of stimulus package is just starting to pour money into the economy, not yet full steam running.

Now lot of people start believe this round recession is really severe one. Previous, still a lot of investors are very bullish the it will soon be over, but now hope is fading as days passed, which is good sign.

HSBC up strongly, should put a stop on the selling on Pbbank at least for time being.

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Added on March 10, 2009, 10:29 amResort become more and more interesting as days go.

This post has been edited by cherroy: Mar 10 2009, 10:29 AM

Become a Ostrich then, putting the head into the sand, then safe liao.

Actually it is good time to "learn" the patient and as a control your emotion lesson. Once you get through it, you are actuallly helping yourself which you will able to make more wise decision in the future.

It is a valuable experience that something can't be taught or told simply.

Just my 2 cents.

No, just a joke, not meant to direct to anyone.

I am not against speculation nor anything, just feel now it is a good time and valuable (on going process in a bear market) lesson to learn about stock market behaviour.

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Added on March 10, 2009, 3:02 pmNow with BTS system, we can see the order number of it.

So whenever we see too much order while the amount of Q is low, it just mean more retailers are buying which is not a good sign.

What we want is low number of order in the buy side but with large amount of Q, which mean large and instituitional investors are in it.

This post has been edited by cherroy: Mar 10 2009, 03:02 PM

We can only see the bottom until it is too late or already passed.

The one that previously can make the whole market turn be it up or down was TDM which back during financial crisis time. Since then, if not mistaken, we don't see a speech that can turn the market drastically.

Unless we get some surprise good news from the budget (don't think much surprise as gov is already deficit, massive spending, market might worry about the health of budget), market should move in line with global market.

Anyway still hope some good news from mini-budget, and hope gov really taking seriously about the economy problem, instead of just busying with political quarrel and power struggle.

60 billion, wow, more than what most people expected.