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this joker going to crash badly...
Any bros can help in this issue ?
Sound like we're allocated 400 shares per lot that we hold and buy them at $1.60 per share. Why would anyone wanna do that since the price of this stock now is lower than $1.60...
Hi all, what does this means ? thanks
RIGHTS : OFFER OF 2 FOR 5 @ $1.6
Wah moving higher today! Any good news? Or just mkt play.
moving upward last 1/2 hr ....something brewing???
ehh...closed at 1.71 siah! looks like this burger the odd one out among various OilMarine play siah !! even EZRA starts to move liao...hee
cheers !
DBS Vickers, which has Buy call, cuts target price to $2.59 from $3.32 to reflect bigger share base, but ups FY08-09 earnings forecasts slightly to account for lower interest expenses as proceeds will partly be used to repay bank loans. Expects company to add more land, jackup rigs to its current fleet to drive earnings growth.
Goldman Sachs expects market to view KS Energy's proposed rights issue negatively given major expected dilution. Notes proposed $1.60/share subscription price marks 15% discount to Jun 30 closing price of $1.89. Estimates company's post-rights net gearing to fall to 65% vs pre-rights' 191%. Estimates dilution to house's FY08-09 EPS estimates likely 22%, 18%, assuming company raises some $174 m and mainly repays debt, and all 109 m shares were issued at start of '08.
"While the dilution could be lowered by KS Energy investing in investments generating stronger returns, we estimate this would leave the group trading at '08E P/E of 14X using theoretical ex-rights price of $1.81." Notes risk rights issue may not be fully subscribed.
Looks like Greek to me 
KS Energy Services fell on earnings dilution concerns following company's move to raise up to $174 m through rights issue. Investors can subscribe for 2 rights shares at $1.60 each for every 5 shares already held. Up to 109.4 m shares will be issued, raising funds for company to repay bank loans, finance equipment purchase. Firm shouldn't have difficulty getting demand as existing shareholders Pacific One Energy and its concerted parties have pledged to subscribe for shares, mopping up 88% of maximum issue. While exercise will strengthen group's balance sheet, investors will likely be wary of dilution impact.
alexmay ( Date: 30-Jun-2008 22:08) Posted:
KS Energy Proposes 2 For 5 Rights Issue
to Enhance Capital Base and Support Business Expansion
2 for 5 rights issue at S$1.60 per share to raise up to S$174 million
•
their rights shares entitlements amounting to 29.6 million shares Pacific One Energy and concerted parties undertake to fully subscribe for
•
additional 54.8 million rights shares Pacific One Energy undertakes to make excess applications for up to an
•
shares Kim Eng Securities undertakes to underwrite up to 11.7 million rights
•
certain conditions Whitewash waiver approved by the Securities Industry Council subject to |
|
this ":fund" raising exercise will reduce the gearing ratio for this burger to buy and deploy for oil production equipment to cater for future growth lah....then again...raising $$ at this tight credit env can be a challenge...so i guess not many investors will be too keen to buy into this growth story???
anyway...it's lowest is 1.53 or so..lower that the 1.60 right issue price..haha...mabe i will wait till then :P
cheers ! :)
as expected, now dropping 7% to 1.76... close to their right price of 1.60.. that's exactly 10% from 1.60... don't be surprised the price will lingering around 1.60 until the whole right issue subscription done.... would expect the price movement only after that... cheers...
jackjames ( Date: 30-Jun-2008 22:45) Posted:
| it is never a good thing to ask money from the shareholders.. |
|
wah liao, i only got 1 lot, so entitled to miserable 400 odd shares.... jialat man! should I subscribe to this ?
it is never a good thing to ask money from the shareholders..
will this dilute its share price ??? wat will happen ??? pls advise... thks
KS Energy Proposes 2 For 5 Rights Issue
to Enhance Capital Base and Support Business Expansion
2 for 5 rights issue at S$1.60 per share to raise up to S$174 million
•
their rights shares entitlements amounting to 29.6 million shares
Pacific One Energy and concerted parties undertake to fully subscribe for
•
additional 54.8 million rights shares
Pacific One Energy undertakes to make excess applications for up to an
•
shares
Kim Eng Securities undertakes to underwrite up to 11.7 million rights
•
certain conditions
Whitewash waiver approved by the Securities Industry Council subject to
This used to be not a very active stock. Now its future seems more optimistic.
Price subdued today probably because of some force selling today. Those who bought high during the last attempt at run up and who cannot hold have to let go today at a lower price. Will be positive if there is a last minute buy up and the stock closes above yesterday's low. Just my opinion.
Bought a few more lots today at $2, oil price is bound to increase, all you need is some threat to the oil production, like hurricane, disruptions somewhere. Even if oil prices drops, it will still stay high enough to support O&G play. Vested.
Strong support at 1.99/2.00. Relatively safe to go in at this price in view of generally bullish prospect for energy sector. Bought some at 2.00. Dow futures turning positive. Upside potential good for this counter. Caveat emptor
