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961-970 of 970
jackjames, you are young and enjoy all these excitement/votilatilty.....I suppose you are a smart investor and is trading within your means, so its ok lah...
Target price 2.17 , hmm. sounds so attractive... sometimes, I got scared of china stocks.. can swing all the way up, and crash you all the way down.... but it is fun though...
| Tuesday, December 12, 2006 |
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China Milk Products
Issue Of Convertible Bonds |
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Current Price : S$1.38
Target (12-mth) : S$2.17 |
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China Milk Products is proposing to issue convertible bonds (CB). The key features of the CB are as follows: |
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We are neutral on the CB. The yield of the CB seems reasonable and is at a discount to the true borrowing cost of the company. The conversion price is set at quite a high premium of 45% compared with 25% for Sinomem's CB. |
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We believe the company is taking advantage of the good performance of its share price and market appetite for new issues to raise new funds. The proceeds will be used to purchase cattle, expand or acquire new production facilities, purchase new equipment and machinery and general working capital. With almost Rmb450m cash as of Sep 06 and the funds from the CB issue (Rmb 1.1b), China Milk will have Rmb1.5b at its disposal. The company needs to invest the funds effectively to minimise any drag on its ROE. |
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With the issue of this CB, short-term sentiment on the stock could be dented and the share price might experience some weakness. |
This counter will up sharply next week, l guess, China counter is begin to move up again.
Keep an eye on China Milk ..... I think this counter may be on the rise ... based on TA indicators (I may be wrong also....) next few days to 1-2 weeks will confirm....
It attended JP Morgan's Small Cap Day on HK on Aug 22/23. JPM issued a non-rated report on it. It was also buoyed by sturdy gains of peer Mengniu in HK.
There was talk that the stock was being propped up by a share placement in the near future. The 6-mth moratorium ends on Sep 13.
yeap. once the holding period is up. dnt know what these guys might do.
The 6 months holding period is up in Sept. i would advise caution as pre IPO investor might start selling. Try not to be lured by the slight uptrend in price..
For reference, please.
The stock is currently trading near $0.975. Price chart shows a large symmetrical triangle in formation since June. The stock is now near the apex of the triangle structure and a breakout is likely. At this stage, the direction is unclear, however the stochastics indicator is at oversold level and is close to reversing up. Given the surge in volume, a propensity to break to the upside appears likely, in which case the stock could head up towards $1.10.
The company recently reported a 58% increase in 1Q07 earnings.Recommend accumulating the stock at $0.975-0.985.
Source : UOBKH
