As discussed a few times previously, the trading of Rights would result in arbitraging activity involving the Rights & the underlying share (in this case Time.com). A long-term shareholder of Time.com would be enticed to sell the share & use the sale proceed to buy the Rights & subscribe for the entitlement if he/she could make a gain. Example, at the close of the morning session, a Time.com shareholder could sell the share at RM0.695 & buy Time-OS at RM0.145 & subsequently subscribe for the Time.com share at RM0.53 apiece. This would give him/her a gain of 2 sen. However, Time-OS rose in the afternoon session to close at RM0.165. The opportunity for arbitraging does not exist.
What I like to highlight here is that this is the second time we are looking at Time.com & the impact of Time's Offer for Sale of its Time.com shares to its shareholders. Investors must have looked through this entitlement earlier- whether they are existing shareholders who wish to sell or they are non-shareholders who wish to buy- and they had come to a conclusion that Time.com is worth a BUY at RM0.68. This is why the stock, which dropped sharply in June 20, rebounded when it hit the level of RM0.68. Now, we are again revisiting this price level. It is very likely that this price level will hold & a rebound would ensue. You have a chance to take a second bite at the apple. Good luck!
Chart 1: Time-OS's 5-min chart as at July 6, 2011 (Source: Quickcharts)
Chart 2: Time.com's 60-min chart as at July 6, 2011 (Source: Quickcharts)
hi alex,
ReplyDeletecould you pls review Tambun? i notice its fundamental is quite good. do you think is hidden gem?
thanks
maxwealth88
Hi Alex.
ReplyDeleteIs perwaja a breakout today?
Hi JY
ReplyDeleteYou could be right. Perwaja has an upside breakout at RM0.98 yesterday. Its next resistance is at the horizontal line RM1.05 & then at the next downtrend line at RM1.15. I am heartened to see that volume has picked up prior to the breakout.
Good luck.
Hi MaxWealth88
ReplyDeleteI doubt you can find many gems among the newly listed stocks, Tambun included. After a 2-year bull run, almost any IPO coming to the market would be handsomely priced. You may discover gems among the existing stocks that have been listed 5 years or earlier. For example, MHC is being privatized as the potential of its land in Subang 2 is on the verge of being realized. The market did not know about it. The major shareholders did & they swooped up the company. Have they or the management perform their fiduciary duties by communicating with the minority shareholders about the potential upside?
Hi MaxWealth88
ReplyDeleteBTW, Tambun's immediate support & resistance are at RM0.75 & RM0.80, respectively.
Hi Alex
ReplyDeleteToday, KSL successfully break above RM2 mark to as high as RM2.05. Some analyst have target price of RM 2.45 for KSL, what do you think? BTW, KSL is expect to announce its warrant issue next week, at issue price of 20sen, exercise RM1.60.
Hi Alex,
ReplyDeleteCan you comment on Bolton, i find some strange activities in which on Monday, Bolton snapped up share from open market (5.7m share) through share buyback scheme which apparently trigger maximum allowable 10% treasury threshold. But, somehow, Bolton on the same day, cancel a total of 10.8m share from its treasury share account to avoid its from exceeding these threshold!. Then, the next day, Tuesday, Bolton major shareholder actively buy share and pushing the share 10% higher
Hi Alex,
ReplyDeleteWhat do you think about YEELEE, it keep moving at the range of 0.96 and 0.98. Do they have the potential to break RM1 since they just win a contract from kleggor?
Thank you very much.
i believe ksl is a good buy due to its track records. the land which is located in iskandar development would soon be its crown jewel and not forgetting the mall which is eyed by a few interested parties. the rnav of ksl is rm3.25. good long term buy and dividend is not that bad.
ReplyDeletedear all,
ReplyDeletei read from mosea that franklin templeton has position in ksl. yes franklin templeton emerging markets group has some 4.78% in ksl holdings. mobius, the chairman of franklin templeton believes strongly that iskandar region will be developed in a big way. ksl has 447 hectare of land in iskandar region. cheap and hugely discounted and ksl should be the right counter to have. do you agree with me, alex?
thank you.
thanks Alex.
ReplyDeleteregards
maxwealth88
Xinzhang
ReplyDeleteI don't think ksl will consider to sell off its mall. Currently the mall alone already contribute about 3m/pmth. Once its adjacent ksl resort (1000 rooms) completed by year end and start operate beginning next year, it will contribute at least by another 3m/pmth.
By then, its investment properties division altogether will contribute about 80-100m, giving rise to EPS 15sen-19sen. With such impressive recurring income, i don't thinl ksl will lets go its Gem, instead, it should subject to market re-rating trading at least in par with IGB, at 12-15x
dear hng,
ReplyDeleteyou may be right. be that as it may i was told that a few interested parties approached ksl for possible acquisition. while i have no idea as to the progress of the nego but i was told the offers were quite enticing. in any case, i strongly believe ksl is a good long term buy. the only thing i noticed is that volume is low as not much seller.
Xinzhang
ReplyDeleteIf you do visit JB recently, you will notice there is a lot of new highway going to be ready soon, This is on top of upcoming MRT linked from Sing. Once its KSL resort is ready to commence early next yr, there will be direct link transport to Marina and Genting casino. Recent stronger Sing dollar is a another +point attracting even more shopper and better offer hotel room rate for visitor to stay at ksl resort.
No doubt, the success of ksl mall do attract global investor interest, particular from those from Singapore. But, i still think since ksl already put in so much effort in building ksl city, so much so until there is no enough financial to develop its prime land in klang, its should wait for its true value to fully materialize especially when ksl city become full fledged and self-equip city by early next yr with all sort of facilities: retail mall + service apartment + 5 star hotel+ Expo+ convention center.
Between, investor could seem its NTA will keep increasing as ksl will re-value ksl city mall yearly. Until then, i think ksl city mall should worth more than 1 billion judging from expecting recurring earning of 70-80m, which if ksl decided to sell off then, its will be generate as much as RM2/share