APM & TChong are both controlled by Dato' Tan Heng Chew, mainly through Tan Chong Consolidated Sdn Bhd ('TCC'). As at 31/3/2009, Dato' Tan & TCC together owned 52.8% & 50.85% of APM & TChong, respectively. TCC is a private company owned by the two brothers who founded the Tan Chong empire years ago. The two families were at logger heads up until recently when a solution was reached on how to divide up their interests in TCC.
A corporate exercise involving APM & TChong either in the form of the takeover of APM by TChong or the merger of the two companies or the sale of the business of both companies to a Newco could be in the final leg. Looking at the fact sheet below, I think it may involve a share exchange between APM & TChong at a ratio of 5 APM shares for either 6 or 7 TChong shares, if the exercise is a takeover of APM by TChong or a merger between APM & TChong. If it's a sale of the their business to a Newco, the valuation of the business/shares of APM & TChong may reflect the same ratio of either 5:6 or 5:7 in favor of APM.
Table: APM & TChong's Fact Sheet
Chart 1: TChong's weekly chart as at Feb 24, 2010 (Source: Tradesignum)
Chart 2: APM's weekly chart as at Feb 24, 2010 (Source: Tradesignum)
6 comments:
Dear Mr Lu, Thank you for your kind advice on which shares to buy & sell. Keep up the excellent work.
Good day Alex,
How do you see MEASAT and Transmile on technical viewpoints?
hi~
i am newbie of the observer of stock market...
i had joined the rhbinvest challenge which start from 1/3 - 31/3/10.
i would like to ask that any shares that i could buy for it which can have a high return within a month.
Is that buying a low price share better than a higher price share??
thanks ^^
Hi Solomon,
Measat is still in a downtrend where the breakout level is at RM2.20-30.
Tranmil is a new all-time low. It is a good practice to avoid going 'long' on a stock trading at all-time low, just as it is a good practice to go 'short' on a stock trading at all-time high. The uncertainties surrounding this stock look too formidable to overcome. Best to go this stock a miss.
Hi ronnie,
Thank you.
Hi 1010,
As a rule, you make profit only by selling stocks at prices higher than what you've paid for them. So, buying at low price is a start. You need also to consider whether you can sell at a higher price.
What if you buy a stock at a low price, only to see it goes lower? The opposite may also happen- you may buy a stock at a high price & it goes higher.
If you are making a start in investment, then do some reading on this field. Try to read up on fundamental analysis and also technical analysis. Be prepared for a few lean years as you learn the rope. The rewards will come, when you are ready.
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