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Thursday & Friday pricing did not progress as contra player sell their share.
Next week this baby should progress to another level (+++).
really for better value next week.
Hi guys, i read above rights issue somewhere and have some question to ask.
i) Once a rights issue is declared, the counter will go on 'cum-rights' and there will be a 'CR' beside the name of the counter. So why this stock is not indicated with "CR" now?
ii) When a rights issue is being issued, the stock price will fall due to dilution and this will happen on the last day of cum-rights i.e. CR or the day before ex-rights i.e. XR. The theoretical drop in the stock price which is also known as the ex-rights price can be calculated as below. Am i right?
So if i have 10,000 shares @ 0.4($10000 x 0.4 = $4000) & i can subscribe to 10,000@ 0.15 ($1500).
Therefore i actually have 20,000 shares and paid $5500.
Now, the closing stock price @ the last day of cum-rights (CR) = 0.4
So the theoretical stock price as a result of this rights issue will be [($0.4 * 1) + ($0.15 * 1)]/2 = $0.275
If total shares before rights issue = 1million, Total shares after rights issue = 2million
My stock value = $0.275 x 20,000 = $5500 (Which is what i pay)
So i earn nothing from this?
Am i right in the calculation above. I am a newbie, so pls enlighten me.
Forgive me if i'm totally weong. Tks.
But with the rights, u can average out yr cost (& that represent u buy at cheaper cost). Do a calculation, u should still benefit fr it.
pohthree ( Date: 27-May-2009 17:42) Posted:
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i suppose the price will drop due to the Rights, thus your 0.4 will be much lesser than it is...
it does seems to be a good buy based on the article.
if i have 10,000 shares , does that means i can subscribe to the rights for 10,000 shares @ $0.15 = $1500.
if the price now is $0.40 x 10,000 = $4000, that means i can make a profit of $2500.
is it calculated in this way. sounds good leh.
This baby will be a good catch. Refer to below article:
Summary: Pacific Andes Holdings (PAH) posted better than expected net earnings of HK$664m for FY09, up 38% YoY. The group has also declared dividend per share of 2.07 S cents per share (same as last year), giving an attractive yield of 6.8% based on pre-suspension price of S$0.305. Together with the FY09 results, PAH also proposed a renounceable underwritten Rights issue on the basis of one rights share for every one existing share held and one warrant for every five Rights shares at an issue price of S$0.15 per Rights share. Key shareholder Pacific Andes International Holdings Ltd (PAIH), which holds a 65.1% stake in PAH, has given its irrevocable undertaking to subscribe for its entitlements. Demand and pricing seem to be holding well and not affected by the recent H1N1 scare or the current global recession. This has given us confidence to raise our selling prices for its fish and fishmeal products as well as including organic growth from the above vessel redeployment exercise. Rolling our estimates into FY10 & FY11, we are raising our fair value estimate from 30 cents to 63 cents (based on 6x blended earnings). Maintain BUY.
Good set of FY09 results. Pacific Andes Holdings (PAH) posted better than expected net earnings of HK$664m for FY09, up 38% YoY. While revenue was in line with our expectation, up 12% to HK7847m, the better bottomline performance was partly due to deferred tax credit of HK$70m in FY09 versus tax charge of HK$26m in the previous year. This is not expected to recur in FY10. PAH’s 4Q earnings came in at HK$237m, up 8% YoY and 172% QoQ. Revenue also improved in 4Q by 23% YoY and 120% QoQ to HK$637m. 4QFY09 margins showed across the board improvement from 3QFY09, but FY09 margins were slightly lower than FY08. Note the group has not declared any dividend for FY09.
Rights issue to meet working capital needs. Together with the FY09 results, PAH also proposed a renounceable underwritten Rights issue on the basis of one rights share for every one existing share held and one warrant for every five Rights shares at an issue price of S$0.15 per Rights share. This is at a 51% discount to the pre-suspension price of S$0.305. The exercise price for the warrants is fixed at S$0.23. Key shareholder Pacific Andes International Holdings Ltd (PAIH), which holds a 65.1% stake in PAH, has given its irrevocable undertaking to subscribe for its entitlements. We estimate that net gearing will drop from 91% to 76% with the Rights issue.
Maintain BUY, up fair value estimate to 63 cents. In addition to the good results, management reassured us that the deployment of the five vessels to the South Pacific is on track and should commence contribution in 2QFY10. Demand and pricing seem to be holding well and not affected by the recent H1N1 scare or the current global recession. This has given us confidence to raise our selling prices for its fish and fishmeal products as well as including organic growth from the above vessel redeployment exercise. We are also revising up our FY10 earnings estimate from HK$440m to HK$720m and introducing FY11 earnings expectation of HK$822m, up 14% YoY. Rolling our estimates into FY10 & FY11, we are raising our fair value estimate from 30 cents to 63 cents (based on 6x blended earnings). Maintain BUY.
This counter has also moved up recently, expecting good results like China Fishery. Not forgetting this counter gives good divided yield.
thomas_low ( Date: 07-May-2009 15:37) Posted:
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Low diesel price, higher fish price, higher volume is coming, so good to net a few fish and salt it, i may fetch better price later...have you see the price for salted fish? Is is so much more expensive than the fresh fish!!
| Pacific Andes (Holdings) | |||
| Result note - Beaten down valuations - by Ho Choon Seng CFA | |||
| (PAH SP / PACF.SI, OUTPERFORM - Maintained, S$0.16 - Tgt. S$0.42, Consumer) | |||
PAH's 2Q09 core net profit of HK$77m (-9.5% yoy) was below our expectations, accounting for 13% of our FY09 estimate and 12% of consensus. 1H09 core net profit to HK$199.2m forms 33.5% of our FY09 estimate. The key divergences were higher-than-expected fuel costs, interest expense, and selling and distribution expenses. We have cut our FY09-11 core EPS estimates by 15% on account of lower revenue and higher expenses. While we remain concerned by the company's debt levels, management has the option to reduce sales volume if it is unable to obtain trade financing. Our sum-of-the-parts target price has been reduced to S$0.42 from S$0.92. Maintain Outperform on the back of the substantial upside to our target price. |
What a fXXXX ? last time they mentioned S$0.92 target price, now suddenly say S$0.42. Ha ! Ha ! Till li (cantonese), I also know how to write and be an anlayst ! Ken lin nia (hokkien) !
From the AR 2008:
TOTAL ASSETS
The Group’s assets as at 31 March 2008 totaled
HK$11.1 billion, as compared to HK$7.1 billion one
year earlier. This is attributed mainly to increases in
fixed assets and deferred charter hire capitalised by
the fishing division.
TOTAL BORROWINGS
Total borrowings increased from HK$3.5 billion
to HK$5.2 billion. The increase comprises mainly
additional working capital financing undertaken by
the fishing division, as well as HK$622.2 million in
convertible bonds issued by PAH in FY2008.
sanye2006 ( Date: 22-Oct-2008 09:54) Posted:
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sanye2006 ( Date: 22-Oct-2008 09:54) Posted:
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