Emm the real rally should only come on the last week of the CR.

Recent days we are seeing this baby swinging around 0.41 to 0.43 (estimate should be the support value).

Let continue monitoring.

Hope got good news to further push its share value up. Cheers.

 

Hope for best tomorrow as well.

 

You can see there are quite a few companies who have raised cash during this time using various means (maybe in the form of RIGHT). Yes they maybe in needs of money.

But think of it in another way. What these companies are doing might not neccesarily be a bad thing for the future. By raising cash, their net borrowing decreases. Companies are placing themselves in a position for the faster future recovery.

Not really like what u say company operation not working. If operation not working, they may go bankrupt....   

Hi maybe let take Capitaland as a good example after their Right issue.

pharoah88      ( Date: 10-Jun-2009 14:39) Posted: When a company needs RIGHTS for Working Capital, the company's Operations are NOT Working.  Otherwise, every company would issue RIGHTS.  WHO is the JOKER using RIGHTS for working capital!?   It is just like borrowing money to pay for Daily Groceries, Utilities and Rents! When a company makes profits, it is CASH FLUSH.  The company will either issue BONUS SHARES or Distribute CASH BACK. Check out TM (Telecom Malaysia) which just CASH BACK MYR1.00 for every share to its shareholder. That is AWESOME CORPORATE GOVERNANCE. Where got such thing as using RIGHTS for Working Capital? Every company must sustain its Opertaional CASH INFLOW as Working Capital and for Dividend Payment and Most of all for AWESOME CASH BACK. What happened to the Operational CASH INFLOW when a company made sales and especially profits? So, WHERE are the SALES REVENUE and PROFITS? Are they just PAPER REVENUE and PAPER PROFITS if they are NOT in CASH? I hope NOT. TODAY, CASH is KING and NOTHING ELSE! REMEMBER!

 

When a company needs RIGHTS for Working Capital, the company's Operations are NOT Working.  Otherwise, every company would issue RIGHTS.  WHO is the JOKER using RIGHTS for working capital!?   It is just like borrowing money to pay for Daily Groceries, Utilities and Rents!

When a company makes profits, it is CASH FLUSH. 

The company will either issue BONUS SHARES or Distribute CASH BACK.

Check out TM (Telecom Malaysia) which just CASH BACK MYR1.00 for every share to its shareholder.

That is AWESOME CORPORATE GOVERNANCE.

Where got such thing as using RIGHTS for Working Capital?

Every company must sustain its Opertaional CASH INFLOW as Working Capital and for Dividend Payment and Most of all for AWESOME CASH BACK.

What happened to the Operational CASH INFLOW when a company made sales and especially profits?

So, WHERE are the SALES REVENUE and PROFITS?

Are they just PAPER REVENUE and PAPER PROFITS if they are NOT in CASH?

I hope NOT.

TODAY, CASH is KING and NOTHING ELSE!

REMEMBER!

 

 

PAH are swimming up again. Good results so far for first half. Hope second half is even better.

Cheers.

 

Today STI tumble cause lots of them to cash out first. Anyway, it represent good entry opportunity again.

 

 

This is a good pick. Cheers pal.

 

Fishes very nutritious for the body. No wonder everyone loves to makan fishes. Also my favourite dish. Okay, throw in my million order today. Good luck, all fish lovers.

 

Thanks Alligator for the explanation.Such and ignoramus m i that even with that ..my mind is befuddled..should i buy? ..m looking for solid coy which gives out div and can hope for share price to go u in mediumn term at least....i think pa fits it ...m going to buy.

 

U still in time for the sailing, as the Target Price for this one quite high (at $0.63).

 

N here the analyst report fr your reference, cheers.

By Carmen Lee
Tue, 26 May 2009, 08:01:35 SGT

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.


 

 

Oh Alligator have share with us regards the RIGHTs for this baby previously already. N they are as follow (but he explain based on 0.39 price):

 

From: Alligator      ( Date: 30-May-2009 12:51) Posted:

This rights issue, simplified to be 1 rights for every 1 share at issue price of 0.15, with free 1 warrant for every 5 rights subscribed and warrant expiry is 2-year with exercising price of 0.25

With current market price of mother share at about 39cents, the warrant is already 'In the money'. therefore to work out theoretical ex-rights price:

mother shares, 1 lot or 1000 shares = 0.39x1000=390

rights shares, 1000 at 0.15 =150

warrant 1/5 of rights at 0.23=200x0.23=46

total cost ==586

total qty with rights and warrant=1000+1000+200=2200

estimate total cost/total qty =586/2200=26.6cents

 so, if the mother share trade about 39cents, when ex-rights its price is likely adjusted to 27cents. of course mother share price will change and thus ex-right price also change according to dilution effect as well as market sentiment.

 Your question on how to play warrant... warrant is issued free of charge and attached to rights that is exercised. therefore, if you want to exercise then you get 1warrant  for 5 exercied rights . Each warrant entitled you to exercise at a price of 0.23 within two year expiry. As this is 1 for 5 thus the warrant dilution is not too large as it is 20% of right issue , this act as a sweatener to make entitled shareholder happy to hold warrant.

As this point warrant is priced at 23cents, if mother share price is much higher than 39 cents, the warrant become very attractively priced. on the other hand, if mother share price drops below 31 cents then the ex-rights price become less than 0.23 and it will make warrant not in money ( you can read Golden Agri's case, its warrant is priced out of current market price).

Warrant will be listed in SGX after the Rights issue exercise. Once listed in SGX, warrant can be traded just like share.  You must either sell the warrant for money , or exercise by paying 0.23 to convert to mother share, before its expiry. Once expired, it becomes worthless.

Warrant exercising must go through a paper work process , fill up form, pay cashier order or banker draft to the Warrant Agent. Wait few days for their processing before it become credited into your CDP.

hope this help.

tea444u      ( Date: 04-Jun-2009 17:17) Posted: hi pa holders.... wondering if it si still ok for me to enter now? is the price still good  for a run up? thanks .. to any who help clarify...never understood rights  and the impact on mother shares.

 

hi pa holders.... wondering if it si still ok for me to enter now? is the price still good  for a run up?

thanks .. to any who help clarify...never understood rights  and the impact on mother shares.

 

Emm manage to sail through today bad wave.... with same trading price as yesterday. Good sign. Cheers.

 

This one got a Target price of $0.60. Still got bandwidth to go.

 

 

 

I see. Thanks again bro! I was more bullish a while back frankly. Now with the 'impending' correction to STI (not pointing at any individual stock) not too sure liao. Haha...

 

wah you are so excited about Rights Trading Period...

Although it is not yet announced,  CDP had a typical procedure that Rights Trading Period start on BCD+3 and end on BCD+9.

As BCD, book closure date on 29 June had been released , which means most likely Rights Trading Period will be 2 July to 10 July. However, please note that their announcement will come with actual dates. These are just my experience only and not oficial.

E-war      ( Date: 02-Jun-2009 22:06) Posted: Oh, again not announced yet. Thanks man. I was afraid I missed it bcos of the changed format of SGX. Cheers.