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Post by oldman on Oct 22, 2014 7:36:18 GMT 7
One of my hobbies is finding stocks that have collapsed and yet offer some prospects of a turn-around. Yes, this is not my typical fundamental stock and I am prepared to write off the total investment. Armarda traded most of yesterday at 0.3cts even though it closed at 0.4cts. With 6.338 bil shares (assuming the latest deal is finalised) at 0.3cts, market cap is around $19 mil. 1. In June 2014, it raised around $10 mil by issuing 1.44 bil shares at 0.8cts each. In Jan 2014, there was a placement of 577 mil shares at 1.145cts each. In April 2013, they isssued 715.7 mil shares at 2.17cts. In Jan 2013, they issued 263 mil shares at 2.16cts. 2. It owns 90.95% of China Mobile Satellite Communications Group Limited (CMSCG) ( assuming latest deal is finalised). This is an interesting company providing Thuraya's satellite communications services to China Telecoms. Currently, though this is a loss making company. www.armarda.com/index.php/en/core-business/cooperation-with-thuraya3. Recently, 2 well known investors increased their stakes. Terence Joe Lam has 596.2 mil shares and Koh Wee Meng owns 206.5 mil shares. To the downside is that this company does not have a good history with regards to acquisitions. There have also trade receivables of HK$118.2 mil but I think that most of these will be tidied with the latest acquisitions. Also, a major shareholder in the past, Mr Zhang Jian Hua appears to be selling his stocks. As always, please do your own homework as this is not my typical fundamental stock but the stock is starting to appear interesting at these prices. Of course, the lower the price, the more interesting it will get.
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Post by oldman on Jan 28, 2015 4:24:42 GMT 7
Good development. Extracts from announcement: infopub.sgx.com/FileOpen/ArmardaPlacementAnnouncement20150127finalclean.ashx?App=Announcement&FileID=332889The Issue Price of S$0.005 for each Placement Share represents a premium of approximately a 66.67% premium to the volume weighted average price for trades done in respect of the Shares on the Catalist on 26 January 2015, being the full market day preceding 27 January 2015 (being the date of signing of the Placement Agreement). The Issue Price was arrived at on a willing-buyer, willing-seller basis. In agreeing to the Issue Price, the Directors has also taken into consideration the general market conditions and the value of the existing issued Shares. The Placees were individuals or body corporate introduced to the Company by Mr. Andrew Chan Wai Men (“Mr. Chan”), who is the Nonexecutive Chairman and a director of the Company. The individuals are Mr. Chan’s contacts, and a director of the corporate Placee is Mr Chan’s contacts. There is no introduction fee or commission paid or to be paid to Mr. Chan. HK INHONTECH is part of Inhon group, which was founded in 2007 by Mr. Hongfan Wei, the second son of the founder of Ting Hsin International Group (MasterKong). Mr. Wei is currently chairman of Inhon group. Inhon group is headquartered in Taipei, Taiwan and whose core business are in the areas including but not limited to laptop computers, smart phones, bicycles and material technology across Taiwan, China, and South-East Asia. HK INHONTECH has not participated in any previous share placement by the Company. Upon the Placement Completion, it will hold 900,000,000 Shares, representing approximately 12.18% of the Enlarged Issued Share Capital. Note: Ting Hsin International Group is the largest private shareholder of Taipei 101.
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Post by sptl123 on Jan 28, 2015 11:30:13 GMT 7
Multibagger Stocks (四两博千金). Yes I just gone in. CE.
It looks ok but as what old man say: I am prepare to write off the investment too.
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Post by oldman on Jan 28, 2015 12:54:52 GMT 7
My preference has always been for folks to buy at a lower price than I did. But of course, for TA practitioners, they may prefer to wait till there is action even though it may be a tick higher. But do note that for this share, a tick is 33.3% higher than the last tick. Yes, only for those who can afford to write off their investment.....goes to show that sometimes, I too can be a high risk investor.... what is life without a bit of fun every now and then. Also, do note that there was quite heavy buying at 0.3cts over the past few days. I think the shares will be stuck at 0.3cts to 0.4cts level for quite a while as some folks may exit the train given that they are already 33.3% up. For me, I am more likely to sit down and enjoy the train ride as I think the journey has only started...... however, one must always know that the train driver is in command of the train. Up or down, it is up to him.... but I think all the chess pieces are in position..... Saying all that, it is interesting to note that many of the lots to sell at 0.4cts look like small lots..... Multibagger Stocks (四两博千金). Yes I just gone in. CE. It looks ok but as what old man say: I am prepare to write off the investment too.
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Post by earnestlearner on Jan 28, 2015 14:08:26 GMT 7
Hi Oldman, I am very curious how do you identify opportunities such as these? Surely, there is more to a tikam? From fundamental analysis, the numbers don't look good to me. In fact, the company were losing money and raised money through placements twice within last year. Management seems to come from Taiwan, HK but key operations are in China. Sounds like an S-Chip to me and hence, the bad association. Although there are signs that the company is getting into new area in telecommunication and data center business, the operations are again in China and being quite technical area, I think it is not easy to assess the competitive landscape of these new businesses. The only slight clue I can derive is the buying from CEO, renowned investor Terence Joe Lam and people like Koh Wee Meng and Bobby Lim in the top 20 list. But then, for these people, the stakes in Armada could be just peanuts. Hence, I don't think it's good enough to just follow them blindly. Care to share the broad strokes for the benefit of Pertama community?
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Post by oldman on Jan 28, 2015 14:16:57 GMT 7
The clue is in the demand and supply. As an investor, you want strong buyers. Do read my book on demand and supply: pertama.freeforums.net/thread/49/demand-supplySecondly, as a venture capitalist, I think you too will be excited with the industries that they have bought into. Would you pay $20 mil for a majority stake in these companies? I would... and yes, it is much more than just a tikam.... Hi Oldman, I am very curious how do you identify opportunities such as these? Surely, there is more to a tikam? From fundamental analysis, the numbers don't look good to me. In fact, the company were losing money and raised money through placements twice within last year. Management seems to come from Taiwan, HK but key operations are in China. Sounds like an S-Chip to me and hence, the bad association. Although there are signs that the company is getting into new area in telecommunication and data center business, the operations are again in China and being quite technical area, I think it is not easy to assess the competitive landscape of these new businesses. The only slight clue I can derive is the buying from CEO, renowned investor Terence Joe Lam and people like Koh Wee Meng and Bobby Lim in the top 20 list. But then, for these people, the stakes in Armada could be just peanuts. Hence, I don't think it's good enough to just follow them blindly. Care to share the broad strokes for the benefit of Pertama community?
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Post by oldman on Jan 29, 2015 8:04:28 GMT 7
When you look at the pre open prices done, one can see all the small lots which were taken from the sell queue at 0.4cts. I still think the share price will continue hovering between 0.3 to 0.5cts as one expects a lot of stale bulls around. Don't underestimate the smartness and patience of the invisible hands.
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Post by psolhawk on Jan 29, 2015 9:03:33 GMT 7
Yes, after doing due dilligence, I am slightly vested at 0.3cents too during the heavy selling some weeks ago. Was trying for 0.2 cents but to no avail! I too think that there will be plenty of supply as there are not many solid long term holders holding the bulk of the shares so if we are patient enough to let the news subside, one can benefit from buying at a lower price.
I was initially concerned that Ting Hsin's management integrity may not be as good as I like given the widespread food scandals arising from multiple products produced by them. But all in all, except for a star or two, I think many stars are aligned to provide a decent margin of safety (if you bought it cheap enough).
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Post by earnestlearner on Jan 29, 2015 9:17:49 GMT 7
Dear Oldman, Appreciate your valuable insights and pointers there. It goes to show the importance in reading between the lines! And this is what makes Pertama extremely interesting and enjoyable. Thanks again
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Post by oldman on Jan 29, 2015 9:19:24 GMT 7
Ha ha. I too have quite a bit on queue to buy at 0.2cts. Hopefully, it falls back as my queues are still there. As for the supply, I read differently from you. I think most of the big available supply have already been mopped up. Yes, after doing due dilligence, I am slightly vested at 0.3cents too during the heavy selling some weeks ago. Was trying for 0.2 cents but to no avail! I too think that there will be plenty of supply as there are not many solid long term holders holding the bulk of the shares so if we are patient enough to let the news subside, one can benefit from buying at a lower price. I was initially concerned that Ting Hsin's management integrity may not be as good as I like given the widespread food scandals arising from multiple products produced by them. But all in all, except for a star or two, I think many stars are aligned to provide a decent margin of safety (if you bought it cheap enough).
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Post by oldman on Feb 9, 2015 17:52:40 GMT 7
Today's lots done is also informative .....
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Post by psolhawk on Feb 10, 2015 6:50:15 GMT 7
At a total transaction value of $10k+, I think it is just another secret admirer who reckons that $0.004 is good enough. Is it linked to the upcoming 3rd quarter or final year results? I do not think so. Maybe there is some insider info but I think consistency in such buying patterns maybe key. We still see people selling down to $0.003 occasionally.
On the other hand I am pretty impressed by the background of the latest independent director to join Armada. He has a pretty unique entrepreneurial background.
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Post by oldman on Mar 5, 2015 18:27:42 GMT 7
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Post by oldman on Mar 13, 2015 8:45:40 GMT 7
Guess I was just lucky. When we board a bus, we never know how the journey will be (ups and downs) and when it will end. If the journey is good, we have to remember to thank the driver every now and then. At the end of the day, if you are on the same bus, when you get off the bus is really up to you. I can only identify buses that look interesting but it is up to the passenger to balance his fear and greed as this equation will determine his exit points. If you bought at 0.3cts and manage to sell at 0.5cts, you are already 67% up on your investment in a matter of months. I don't share my exit points for obvious reasons. Suffice it is to say that I usually hold on for the long run, especially if the fundamentals are improving with every announcement. Good luck to all of us on this journey. The buy volume of 29.8 mil shares at 0.5cts suggests that the announcement is likely to be positive. Next target: 1ct? Only time will tell. Gd Morning Oldman Your favourite counter halted today ah? got good new? Congrats. But I no buy... too chicken.
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Post by hope on Mar 13, 2015 19:41:16 GMT 7
Yay, Oldman, you huat huat liao, same for those gutsy ones who boarded the same train.
I will definitely join in the next round....haha...dont forget to jio me.
Have a good weekend, my frenz.
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