Latest Forum Topics / HanKore Env | Post Reply |
Hankore onward march to 8-10cts.
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Spivvy
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09-Nov-2013 01:13
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Ccx bro, so many people saying same ting, if gap up on consolidation can only be lucky or manipulated thats all, no logic. Got chance get out must die die remember not to be greedy again liao else get punished by the shortists gao gao. I hope got chance cut down my losses with my exit but dunno when is the best time to do so. If SGM not yet means still got time to wait a while.
The 3 counters wan to drop we oso cant do much liao. Dunoe whether year end got any chance for pennies recover or not. Cut hankore Cut mirach i will have no mood for xmas and new year liao. People go celebrate enjoy i can only slum one corner feeling pity for myself. I cant stomach 50% loss or wait 3 years. So i wait a while if still doesnt get better before cny i just pang lor regardless at wat price. Jin sianz.
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cccx123
Veteran |
09-Nov-2013 00:42
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I say next week will cry because two out of the three in asiasons, blumont and liongold posted bad news after trading hours today. They may crash next Monday and drag the rest of the penny market down with them. I am holding Innopac, so might cry, though already lost so much maybe numb liao. SGM not decided yet lol.. What I said down here are mere possibilities which may or may not occur. Maybe Hankore post consolidation gap up? Haha.. But like I said before, I'd rather be pleasantly surprised than rudely shocked.
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Spivvy
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09-Nov-2013 00:21
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Woa u all don scare me leh. Say next week we will cry, after consol may drop laosai attacked by shortists, first day post consolidation already start at 50c etc. See already how to sleep well tonite?
When is the SGM?
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cccx123
Veteran |
08-Nov-2013 22:52
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If you are an existing shareholder with a substantial percentage of your portfolio in Hankore, you might not want to take that risk. Already been established, as demonstrated by SIIC's placement that there is no need to do a rss to bring in institutional investors. No reason to do an rss already, not at such a huge risk.
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reknab
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08-Nov-2013 22:36
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haha in that case, the stock will be cheaper! Maybe some of us can add to our holdings... I think MAYBE thats why management wants to bring in institutional investors in, to support and set a price floor such investors can understand valuation and will see a buying opportunity if people sell/short solely based on the fact that a reverse split happened. 
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cccx123
Veteran |
08-Nov-2013 22:32
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That's the problem lol. In a shortists' market like SGX's, a stock formerly trading at 6cts will get shorted down almost immediately if it even sees 60cts post consolidation. In fact, it might not even open at 60cts, maybe 50cts zzz
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reknab
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08-Nov-2013 22:31
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Totally agree with you, the AOL-Time Warner merger is a classic example in business school of the perils of CEO ambition and greed, as well as how disastrous mergers can be if not well thought out. But again, dont you feel like what you're saying is a little far fetched? Lets discuss normal scenarios, and not such examples...  In conclusion yes I agree that what you say is true, but its contingent on management making another followup decision. In other words, it is not the fluctuation in share price that changes fundamentals, but what management chooses to do based on that share price.  
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reknab
Member |
08-Nov-2013 22:28
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Agree with you, be happy. haha. No hard feelings bro 1) I believe we should say, a depressed stock price can potentially affect company's fundamentals, if certain additional corporation actions are taken. Assuming nothing changes except for the stock price, the fundamentals do not change. I believe we should be more concerned about what is likely to happen, instead of thinking about scenarios that may not may not happen, and that if done may or may not affect the company's fundamentals 2)   I believe now you also agree that a 6.6 cents stock is no more expensive than a 66 cent stock, assuming the 6.6 cent stock became a 66 cent stock because of a reverse share split?  Again, no hard feelings bro. We can just agree to disagree, hope I gave my point of view objectively without any personal attacks or biases... 
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cccx123
Veteran |
08-Nov-2013 22:28
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You want an overseas example you might want to consider the AOL-Time Warner merger where AOL used an inflated stock price to merge with Time Warner via a share swap or something even though AOL had nearly zero hard assets. We saw how hundreds of billions of dollars was wiped out from the pockets of investors on both sides, especially the Time Warner one who got the worse of the deal. Not saying that HK should inflate its share price artificially through manipulation, but I hope you get the idea of how a higher share price MIGHT affect a company's fundamentals. In the above case, both companies suffered during the dot com crash though AOL benefited as it had the hard assets of Time Warner to back it up and did not end up in the history books like asp many other online companies.
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cccx123
Veteran |
08-Nov-2013 22:17
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Alright, let me run it through with you then and also add in several examples for you to take note of and reflect tonight.
Stock prices affect a company's fundamentals most when shares are used predominantly as an acquisition tool, more so than cash or leverage. Examples of such companies would be ipco, blumont and hankore as well, with its most recent acquisition of JSTY paid all in stock. With the approval of the proposed increase in share capital by 9 billion shares, we can expect more such all stock acquisitions. So do you see where I am going now? I hope you do but just in case you don't, let me continue enlightening you. With a depressed share price, Hankore will have to acquire companies by issuing more shares than is required if the stock was trading at a value comparable to that of its NAV. Simple arithmatic will tell you that even if the acquisition proves successful and the newly integrated subsidiary give great results, the fact remains that if the company stock price had been higher, less scripts would be needed for the acquisition and more could have been put into further acquisitions and this would have increased Hankore's NAV and other fundamentals such as earnings visibility, etc. But the worst part occurs should the acquisition prove unsuccessful. It will result in massive dilution for existing stockholders with no net gain, similar to the malaise facing ipco right now. This could have been limited if the stock was trading at a higher price and less was issued for acquisition. So now, due to write downs or worse, write offs due to the failed all stock acquisition, NAVs drop even more and earnings tank further. So please would you like to tell me if a stock price does not affect a company's fundamentals? Or have I not explained clearly enough? I am clearly jilted by your words of course. But never mind it is a Friday and we should all be happy hahaha. We might cry next week so better enjoy his weekend. And remember I did use a hedge and a qualifier by adding in "certain instances". Be happy..
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new6ie
Senior |
08-Nov-2013 21:47
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I can't blame people from loving HK, because I myself loved it before, but was holding always with the hope it might do better business and that the share price would climb above 10 cents. Then the news of increasing capital for   more shares to be issued scared me and so I unloaded some.   Then a day or two later, the most fearful news of consolidation really pissed me off and I sold everything plus shorting some. On the whole I didn't make much because was holding nearly 3 years and have paid for 7 cts rights issue before to average down my higher prices around 8 to 10 cents back then. Last year or so, bought some at abt 3.5, sold some at 5.8 and then sold again at roughly   6.8 cents. My believe is that if I really resume confidence later, I would buy after consolidation and watch the on goings for say 2 weeks to a month before entry, should I really want to play stocks and this share again. I am already quitting though but maybe with spare cash remaining I might just buy 10 lots or 20 lots of the new consolidated shares.   However, I don't want to scare people who are too bullish in HK and refuse to let go now when the time is best to do so. This is because the range for dropping is terrible and would not be believed.   I thought I read somebody said 33 cents, and he got shot. My thinking is after open trading at 64 cents, it might just continue sliding down to its NAV of the consolidation.   Maybe 10% down, maybe 20% down, I can say but the possibility is there.   Of course I might be wrong, and it shot up to 70 or 80 cents after consolidation, but to me that could be just a pipe dream.   Please don't get offended, I got nothing to gain at this moment and nothing to lose by saying what I have said, so if you have cash and can hold it is okay holding for a year or two or three.   But for those who cannot lose half his investment, why not sell first for a small loss and then monitor the situation. Can always buy back after consolidation.   Cheers.   |
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reknab
Member |
08-Nov-2013 21:31
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Bros cccx123 and Spivvy, dont understand how a company's fundamentals can be affected by depressed stock valuations. When the stock price rises or falls, which part of the company's fundamentals get affected? Will revenue fall? or will costs increase? Will the amount of debt taken on by the company increase, or will interest expense increase? If a company's stock is 6.4 cents and after a reverse split it becomes 64 cents, the stock is no more expensive (or cheap). The fundamentals do not change at all. The company's EPS after the stock split at 64 cents will be 10 times the company's EPS at 6.4 cents. In other words, while price per share increase, earnings attributed to each share increases proportionately.   You guys seem to have alot of experience in the market, and I dont mean to be rude, but do what you guys say make any sense at all? If indeed post consolidation the price drops to less than 10x its current share price, it would not be because of weakening fundamentals but a self-fulfilling prophecy that us retail investors have created.   
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wxp8838
Senior |
08-Nov-2013 20:16
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I wish it go to 10C soon. About good news such as new project â?¦and dont follow me, I am bad luck, very bad
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cccx123
Veteran |
08-Nov-2013 19:53
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Actually it depends on the company. If a company's stock price is 60cts but it gives a dividend yield of 4-5% or more without fail every year, people will not mind buying it. An example is PEC, my pet stock though recently it hasn't been performing really as well as I expected it to.
That's why consolidation is very risky, especially for a high growth company such as Hankore. With nothing to back its share price except its future prospects, I don't see the price trading at break even pre-rss. Most of the time, the company's fundamentals will influence the stock price. But in certain instances, a company's fundamentals can be adversely affected by depressed stock valuations. Must grill David during the SGM that they dare to call.
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Spivvy
Senior |
08-Nov-2013 19:43
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what good news?
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Spivvy
Senior |
08-Nov-2013 19:42
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that means u have to sell before consolidation liao? u think will go to 8c or 10c before the consol exercise?
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Spivvy
Senior |
08-Nov-2013 19:40
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whats more, after consol, price becomes 64c. Just think, will you still want to buy hankore at that kind of price anymore? By then, its too expensive already and easier for price to go down than up. I remembered an expert say that nuy only when you think the price is cheap, not its value. Becos once its no longer cheap, nobody will wanna buy anymore. If we buy at a hig price & caught there, we will only have longterm misery. Furthermore hankore is only at the growth stage, not in matured stage yet. How to justify its consolidated price at  this kind of range?    |
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wxp8838
Senior |
08-Nov-2013 18:07
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Thanks .it's awful.before this bad news ,I may hold this one till 20c.but now ,if I can see 8c,I will sell half ,and 10 c sell all and never back.  
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ynnek1267
Master |
08-Nov-2013 17:58
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Since you believe it, just keep it and take it as  a lesson learnt if fail again. Don't add on anymore. China s-chip is still china s-chip. Nothing will change, no exeption. in  a good listed company, the management need to be  moral and have mindset of substanability on business model. China business man just don't know what is it and only think about themselves, The management will just take money and run and leave a shell company there. If they really a good company, they don't need to do consolidation. Just manage the company properly, once company has money, just buy back the share continually.  Their intention of doing consolidation is only issue more new share at high price. 
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halleluyah
Elite |
08-Nov-2013 17:52
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Moreover, more meat to short down when mkt lau sai or any bad news  along the way.
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