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Post by oldman on Aug 10, 2014 10:07:41 GMT 7
This stock used to be called the CCM Group. I think this is a good example of the power of demand and supply on the price of a stock. When the supply of the stock is increased significantly, in the absence of a substantial shareholder willing to buy a lot more, the shares are likely to drift downwards. Jan 2014: 10 for 1 bonus warrants (exercise price of 1ct) with 1 for 1 free piggyback warrant (exercise price of 1.1ct). Mother share price was around 6cts in early Jan 2014. Not surprisingly, astute investors were either selling their warrants or converting their warrants to shares and selling these. This then resulted in a flooding of the market with lots of new shares from the exercising of the warrants. The number of shares issued increased from 171 mil to 1.23 billion shares as at 28th Mar 2014 (from the 2013 annual report). When there is so much new supply, there will be downward pressure on the share price. Current share price is 0.4cts buying as compared to the 6cts at the beginning of the year. I think the company would have raised a lot more money by just doing a straightforward deeply discounted rights then. Maybe this is why they recently announced a deeply discounted rights instead of another round of bonus warrants. Aug 2014: 12 for 1 rights at 0.3cts with bonus free 1 for 1 rights. In essence, a 24 for 1 rights at 0.15cts for each rights share. I will not be surprised that after the rights have been issued, the shares fall to 0.1cts buying and 0.2cts selling. Maybe there will be a share consolidation after that as there can potentially be 87 billion shares in issue then, if all the rights are fully taken up... though I doubt this will be the case. It is useful for investors to appreciate the power of supply and demand regardless of whether you are a fundamental or technical investor as this should affect the way you view the stock.    |
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Post by oldman on Aug 13, 2014 19:18:26 GMT 7
Am surprised that this stock is now up 50% to 0.6cts with high volumes, making it the 3rd most traded stock today. Its warrants are the second most traded stock today.
Yes, it made an announcement today on the acquisition of 2 IT businesses. However, if one digs into the past details, you will understand why I am surprised with the rise of the stock. Guess there will always be traders hoping to be able to sell a tick higher to someone else.
Reading in between the lines is usually much more important than what is written. One has to find out the average purchase price of the main shareholder and whether he intends to apply for excess rights and in what quantities. Yes, these are all in the announcements.....
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Post by oldman on Aug 15, 2014 18:56:14 GMT 7
For those following this stock, it is worth buying a copy of this weekend's The Edge. Some interesting remarks in the article: His stake went down to 7.7% following a massive warrants issue that he put together for CCMK after coming on board.
While the construction arm was sold in May, the company still has $12.3 million of outstanding corporate indemnities tied to its legacy trade.
I know a lot of people say," Mr Chan, you own so little (of the company)." It doesn't matter how much I own. I'ts about what I do.
I am still scratching my head on why Mr Chan bought 93.5 mil warrants at an average of 0.2cts on the 13th of Aug 2014 ( total volume on that day was 97 mil warrants traded and it became the 2nd most traded stock that day!) Maybe the exercise price of the warrants will be adjusted as a result of the rights but still, it may be cheaper buying the rights. Guess, I will be following this stock to try to learn something from Mr Chan. For completeness, he also bought 10 mil shares at an average of 0.6cts each on the 13th of Aug 2014 (61.6 mil shares were traded that day making it the 3rd most traded stock that day).  |
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Post by oldman on Aug 25, 2014 20:01:23 GMT 7
This stock and its warrants continue to amaze me.
A 12 for 1 rights at 0.3cts with bonus free 1 for 1 rights is really a 24 for 1 rights at 0.15cts for each rights share.
The market though is pricing this at 0.3cts (most of the 61 mil shares traded were at 0.3cts) when I think it should be trading between 0.1 and 0.2 cts.... given the massive potential dilution of a 24 for 1 rights issue.
Even more surprising is that the warrants are priced at 0.3cts to buy when the exercise price of these is 1ct.
Maybe I am missing something.....
Anyone with other thoughts?
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Post by zuolun on Aug 27, 2014 7:43:49 GMT 7
S'pore eDev's former unit fails to stop S$4.2m claim — 26 Aug 2014 This stock and its warrants continue to amaze me. A 12 for 1 rights at 0.3cts with bonus free 1 for 1 rights is really a 24 for 1 rights at 0.15cts for each rights share. The market though is pricing this at 0.3cts (most of the 61 mil shares traded were at 0.3cts) when I think it should be trading between 0.1 and 0.2 cts.... given the massive potential dilution of a 24 for 1 rights issue. Even more surprising is that the warrants are priced at 0.3cts to buy when the exercise price of these is 1ct. Maybe I am missing something..... Anyone with other thoughts?
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Post by oldman on Aug 27, 2014 19:25:38 GMT 7
SETTLEMENT OF LIABILITY IN RELATION TO CALL ON PERFORMANCE BOND ON TERMINATION OF TUAS CONTRACT
Unless otherwise defined, capitalised terms herein shall have the same meaning as ascribed to them
in the Company’s announcements dated 28 April 2014, 30 April 2014 and 25 August 2014 in relation
to the Tuas Contract (the “Announcements”).
The Board of Directors of Singapore eDevelopment Limited (the “Company”) refers to:
(i) the Announcements;
(ii) the circular of the Company dated 14 July 2014 (the “Circular”); and
(iii) the offer information statement of the Company dated 26 August 2014 (the “OIS”),
and wishes to inform Shareholders that the Company has entered into a settlement agreement with
the issuer of the Performance Bond in respect of the Company’s liabilities incurred pursuant to the
Corporate Indemnity and in connection with the calling of the Performance Bond pertaining to the
Tuas Contract (the “Settlement”). The aggregate amount of the Settlement is fixed at S$4,331,500
(subject to the terms and conditions set out in the settlement agreement), of which the Company has
up to 1 September 2015 to settle the amount in full. The Settlement shall be funded from the net
proceeds of the rights issue of the Company and/or future operating surplus.
For further details of the rights issue, please refer to the announcements of the Company dated 27
May 2014, 2 July 2014, 10 July 2014, 5 August 2014, 11 August 2014 and 26 August 2014, and the
Circular and OIS.
The Company will make further announcements as and when appropriate and/or necessary.
BY ORDER OF THE BOARD
Chan Heng Fai
Executive Director and Chief Executive Officer
27 August 2014
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Post by oldman on Aug 28, 2014 4:49:52 GMT 7
As suspected, some knew that the warrants will be adjusted....  For those following this stock, it is worth buying a copy of this weekend's The Edge. Some interesting remarks in the article: His stake went down to 7.7% following a massive warrants issue that he put together for CCMK after coming on board.
While the construction arm was sold in May, the company still has $12.3 million of outstanding corporate indemnities tied to its legacy trade.
I know a lot of people say," Mr Chan, you own so little (of the company)." It doesn't matter how much I own. I'ts about what I do.
I am still scratching my head on why Mr Chan bought 93.5 mil warrants at an average of 0.2cts on the 13th of Aug 2014 ( total volume on that day was 97 mil warrants traded and it became the 2nd most traded stock that day!) Maybe the exercise price of the warrants will be adjusted as a result of the rights but still, it may be cheaper buying the rights. Guess, I will be following this stock to try to learn something from Mr Chan. For completeness, he also bought 10 mil shares at an average of 0.6cts each on the 13th of Aug 2014 (61.6 mil shares were traded that day making it the 3rd most traded stock that day). |
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Post by zuolun on Sept 4, 2014 23:02:16 GMT 7
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Post by oldman on Sept 5, 2014 6:11:55 GMT 7
The US firm has one employee and is going for an IPO to try to raise only US$193,320. The way I read it, this amount will pay for 1,611,000 shares, out of which 611,000 are vendor shares from the existing 5,132,000 shares. In other words, US$120,000 will buy 1 mil new shares (yes, this is the same number of shares that will be swapped for the deal). This then values the entire company after IPO (with 6,132,000 shares) at US$735,840. If one looks at its financials, it has a negative income of US$49,476 and a negative shareholders' equity of US$65,851. Saying all that, I would not be surprised that these IPO shares do very well (given its very small float) and these then get reflected over here. As stated in my investment book, valuation is an art, especially valuations involving equity swaps. I can say that my company is valued at $1 and yours at $1 or I can say that my company is valued at $1 bil and yours at $1 bil. In both cases, the same number of shares will be swapped as no real money has been exchanged. But one certainly sounds much grander than the other. I only believe in cash valuations where cash is paid for a stake in the company. Many times, cash and equity are used together and in these cases, I also take these valuations with a pinch of salt... unless of course, the swap is done with a blue chip company whose stock is as good as cash. As for zero coupon perpetual bonds, these do not pay any coupons and I think these do not have a maturity date. Also, my understanding is that in general, the issuer is not obliged to redeem these bonds. Moreover, I think the conversion price for this bond is at US$10 a share when it will be listed at US 12cts a share. As always, I stand corrected. www.nasdaq.com/markets/ipos/company/fragmented-industry-exchange-inc-930398-74955 |
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Post by zuolun on Sept 5, 2014 15:27:10 GMT 7
oldman, haha... He saw what you see so he knows what you mean.  The US firm has one employee and is going for an IPO to try to raise only US$193,320. The way I read it, this amount will pay for 1,611,000 shares, out of which 611,000 are vendor shares from the existing 5,132,000 shares. In other words, US$120,000 will buy 1 mil new shares (yes, this is the same number of shares that will be swapped for the deal). This then values the entire company after IPO (with 6,132,000 shares) at US$735,840. If one looks at its financials, it has a negative income of US$49,476 and a negative shareholders' equity of US$65,851. Saying all that, I would not be surprised that these IPO shares do very well (given its very small float) and these then get reflected over here. As stated in my investment book, valuation is an art, especially valuations involving equity swaps. I can say that my company is valued at $1 and yours at $1 or I can say that my company is valued at $1 bil and yours at $1 bil. In both cases, the same number of shares will be swapped as no real money has been exchanged. But one certainly sounds much grander than the other. I only believe in cash valuations where cash is paid for a stake in the company. Many times, cash and equity are used together and in these cases, I also take these valuations with a pinch of salt... unless of course, the swap is done with a blue chip company whose stock is as good as cash. As for zero coupon perpetual bonds, these do not pay any coupons and I think these do not have a maturity date. Also, my understanding is that in general, the issuer is not obliged to redeem these bonds. Moreover, I think the conversion price for this bond is at US$10 a share when it will be listed at US 12cts a share. As always, I stand corrected. www.nasdaq.com/markets/ipos/company/fragmented-industry-exchange-inc-930398-74955 |
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Post by oldman on Sept 8, 2014 9:22:31 GMT 7
Top volume counter again this morning with 293 mil shares traded. The company has 1.23 bil shares in total (as at 28 Mar 2014) and even at 0.4cts, the market capitalisation is just $4.9 mil.... not that difficult to exert influence. However, when the 24 for 1 rights issue is completed (12 for 1 with bonus 1 for 1), I will not be surprised that the shares fall back to the 0.1cts to 0.2cts level. This is especially so after considering the effects of a few billion more warrants that will be close to its exercise price. Before investing, investors must be aware of the power of supply and demand on the eventual share price. Looks like there is encouragement for others to take up the rights....  |
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Post by oldman on Sept 10, 2014 7:23:07 GMT 7
I will not be surprised that the shares fall to the 0.1 - 0.2cts level after the 12th of Sept. With 1.23 bil shares in issue, there may be up to 29.5 bil new shares issued, though I very much doubt that the take up rate will be that good. The company announcement yesterday stated a rights issue of up to a max of 86.25 bil new shares but I think this assumes that investors will exercise the existing warrants at 1ct and 1.1ct when the shares are trading at between 0.3 and 0.4cts. I am also interested to see if SGX will approve the warrant adjustments as frankly, I don't recall this happening in our exchange in such a dramatic way. Guess, if it is approved, there will be many others folllowing this example.........  |
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Post by oldman on Sept 15, 2014 15:37:32 GMT 7
This stock is absolutely amazing and it is fun to watch from the sidelines.
It is now the top volume again and it is at 0.4cts to buy. I thought the shares will sink towards 0.1 to 0.2cts.
If the rights are well taken up, there will be 24 times more shares than before. The company will raise $36 mil (average of 0.15cts per share) and will have 29.5 bil shares as opposed to its current 1.23 bil shares.
If the rights are not well taken up, then much less new shares at 0.15cts will float in the market.... and the party may last even longer.
Of course, this is still the honeymoon period as the new shares will only flood the market on the 22nd of Sept. Given its relatively modest market cap of $5 mil with 1.23 bil shares in issue at 0.4cts, it does not take much to assert influence during this honeymoon phase.
Today's top volume of 78 mil shares traded at 0.04cts is only valued at $312,000!
Better to watch from the sidelines.
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Post by oldman on Sept 17, 2014 8:16:45 GMT 7
I feel so sorry for the punters who were queuing up at 0.2cts to buy when yesterday, it was trading at 0.4cts to buy. 90 mil shares were sold to these buyers at 0.2cts when the market opened. In 2 days time, a huge supply of new shares issued at 0.15cts each will flood the market and I will not be surprised then that the bid will be 0.1ct to buy and 0.2cts to sell. Yes, there are still currently 265 mil shares in the queue to buy at 0.2cts. Seeing sometimes in not believing. Whether intentional or not, the rights issues was stated at 0.3cts but with a one for one bonus shares. This means that effectively, the rights price is at 0.15cts each. Perhaps, some punters did not read the full document..... This is a good example of the power of money in the equation of supply and demand. To make money from the stock market, punters and investors must be equally skilled in evaluating the effects of supply and demand on a stock price. This stock is absolutely amazing and it is fun to watch from the sidelines. It is now the top volume again and it is at 0.4cts to buy. I thought the shares will sink towards 0.1 to 0.2cts. If the rights are well taken up, there will be 24 times more shares than before. The company will raise $36 mil (average of 0.15cts per share) and will have 29.5 bil shares as opposed to its current 1.23 bil shares. If the rights are not well taken up, then much less new shares at 0.15cts will float in the market.... and the party may last even longer. Of course, this is still the honeymoon period as the new shares will only flood the market on the 22nd of Sept. Given its relatively modest market cap of $5 mil with 1.23 bil shares in issue at 0.4cts, it does not take much to assert influence during this honeymoon phase. Today's top volume of 78 mil shares traded at 0.04cts is only valued at $312,000! Better to watch from the sidelines. |
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Post by oldman on Sept 18, 2014 7:14:29 GMT 7
Not surprisingly, there was acceptance for only 7.8 billion right shares which according to the company, represented a subscription rate of 52.9%. Interestingly, in an earlier announcement, they stated that there is a max subscription of 86.25 billion shares.... if one uses this number instead, the subscription rate falls to 18% after considering the 1 for 1 bonus shares. There were 6.19 billion excess rights application and these will all be fulfilled. The company stated that it expects 13.65 billion rights shares to be issued. As there is a one for one bonus share, total number of new shares issued will be around 27.3 billion. According to the company, this represents a take up rate of 94.85%. Actually, this is not a bad result for the company as it managed to raise $40.65 mil. As for the investors who took up the rights and applied for excess rights, only time will tell. infopub.sgx.com/FileOpen/SeD-Ann-ResultsofRightsIssue_18.09.14.ashx?App=Announcement&FileID=315154I will not be surprised that the shares fall to the 0.1 - 0.2cts level after the 12th of Sept. With 1.23 bil shares in issue, there may be up to 29.5 bil new shares issued, though I very much doubt that the take up rate will be that good. The company announcement yesterday stated a rights issue of up to a max of 86.25 bil new shares but I think this assumes that investors will exercise the existing warrants at 1ct and 1.1ct when the shares are trading at between 0.3 and 0.4cts. I am also interested to see if SGX will approve the warrant adjustments as frankly, I don't recall this happening in our exchange in such a dramatic way. Guess, if it is approved, there will be many others folllowing this example......... |
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