Thursday, June 21, 2007

Lian beng, Koh bros, Heeton and KSH consortium won $243 million contract

Hmm, today is such an odd day.

STI opens low but closed higher, with 4.5 billion (lower than yesterday's 5.7 billion). Does that mean that the impending downside is halted? Honestly I've never encountered this situation before since I've started to notice the correlation between opening, close and volume to determine if STI is going to reverse trend. My gut feeling is that it's not negated. For further confimation of reversal, I think I'll have to take a look on tmr.

But Dow's -149 drop didn't affect asian bourses at all, that's something to take note. Market is such an unpredictable place. The same drop in different days can have all different reaction, ranging from downright panic to exuberant rally.

The news for today must go to Koh brothers and Lianbeng. They formed a joint venture (together with Heeton holdings and KSH holdings) to develop a prime freehold property known as Lincoln Lodge, at District 11 off Newton Road for a total of $243 million. Since they mentioned it's on a equal sharing basis, the contract won for Lianbeng is $60.75 million. Okaayyyy....not a lot, not too little too. I guess the contract award is more for exposure and branding than a real big winfall. I thought it's related to wonder Genting also fell, haha

Anyway, now isn't the time to load up on lianbeng. Wait for it to come down first then I might add more. But of course, the order is Yongnam first, then followed by lianbeng. CSC I already had a mouthful (25 lots) so I guess that's enough. Hold medium to long term should be fine to ride onto the construction sector rally.

I more or less confirm that Straits asia had entered into bearish rising wedge formation. The price movement is getting narrower and narrower until it collapses. More on this at the end of this week. Not sure what action to follow through: add more when going down or sell out.

CHoffshore reached my target price of 0.775 already. Even went up as high as 0.800 before closing +0.050 at 0.790. I read from cna forum that they had a ship which had been fully depreciated but is still contributing to the profits. If CHoffshore decided to dispose and sell off this ageing ship, it'll have a sum of money that is considered 'free' because the value of it had been written off. Okay...that's some accounting for you (lucky I know a bit here and there to understand what the hell they are talking about, haha). Anyway, the more I see this stock, the better I think it is. Looks like another cosco or swiber. My action is to hold.

Swiber consolidating...short term support at 2.25 (based on fibo retracement zone). Overall trend is still up lah...hell of a ride for swiber from 1.87. Take a break, then can go up further, haha :)

Genting...sian...I really hope it won't fall back to 90 cents range again. Really must watch this stock carefully tmr and beginning of next week. I don't want to hold this expensive stock for so long - opportunity cost. Looking to switch the other stocks and come back to this when it fall much lower. See how first....tmr not around to monitor also. Hope for the best!

WONDERFUL!! Chartnexus actually accounted for the rights issue for pac andes and backdated all the price. Really shows a spike up after they announce XR, haha, that's the great response we get for pac andes.


I helped you checked out the allco commercial reits rights issue. Based on the info provided by this announcement,
Att_F0F5A98717FF0E66482572E60052ACA8/$file/Allco.Ancmt.2.250507.pdf?openelement (join them up)

I gather that allco reits are trying to raise up to 210 million to finance the acquisition of the centrelink property and to repay existing debts in relation to the portfolio after the acquisition of the 55 market street property. Since the aims of the fund raising exercise is to increase the asset value of the reits, I believe it's a worthy cause. (It'll be bad if it wants to issue rights shares just to repay debts, as it would signify to investors that they might run into some cash flow problems). As reits provided income in the form of dividend for investors, the more asset they have the better right? I'll take up the rights issue straight.

The problem for the rights issue is that according to this website:

shareholders will be entitled to buy 2 highly discounted rights shares for every 5 existing held as at 25th June (book closure date), with fractions of a lot disregarded. This means for every 1 lot (1000 shares), you are entitled to purchase another 400 shares (outcome must be a multiple of 1000 or 1 lot).

E.g if you hold 2 lots, you are not entitled to purchase any rights shares!!
(2000/5 x 2 = 800, which is less than 1 lot)

If you hold 6 lots, you can entitled to purchase 2 lots of rights as(6000/5 x 2 = 2400, which is closest to 2000 shares or 2 lots).

SO, if you're interested, make sure you own at least a multiple of 5 lots (make it easier for you to calculate)!! I might be wrong about this as my underlying assumption is that the 'UNIT' mentioned in the website is taken as equivalent to 1 lot by me. Ask your broker if you're in doubt.

They haven't provided the offer price for the rights shares yet. But these rights shares can be traded like normal shares on the open market, up to a certain date. You can sell off your rights or buy more on the open market like any other normal shares. After a certain date, the rights shares will be converted to mother share. E.g if you have 5 lots of allco reits before XR, you are entilted to buy 2 rights share after XR. You can trade these 2 rights shares on the market (buy more and sell off). After a certain day, all these rights shares will be converted to mother shares. Say you bought another 2 right shares on the open market, and you'll end up with a total of 9 mother shares (5 original + 4 shares converted from rights).

Hope I made it clear!

Dow made a strong rebound at 13,400. Shouldn't be too bad tonight. Presently at -3 points. Europe all red.