Post Reply
1-12 of 12
Hi All,
Is this share worth to invest???
kindly advise
see2eye ( Date: 23-Jul-2008 16:46) Posted:
|
Thank you once again. I think I will have to give my entitlement a miss then....
Apologies, I just realised something isn't quite right with the computation below. The correct concept should be as follows:
1. Buy the rights (there are 2 types due to odd lot holdings of existing shareholders; known as ChinaACorp R and ChinaACorp R500) at current mkt price of $0.005; these will cease trading as of 25 Jul 5pm.
2. Upon acquiring the rights, one will need to pay $0.015 to convert them to the warrants. Conversion ratio is one right to one warrant.
3. Within the next 5 years, if one is interested to convert the warrants to shares, one must pay $0.07 per warrant (exercise price) to convert at the ratio of one warrant to one share.
Hence total cost = 0.005+0.015+0.07=$0.09; i.e. the cost is actually 9c.
So breakeven is only if the shares trade at 9.5c in the 5 yrs subsequent to the listing of the warrants.
CWQuah ( Date: 22-Jul-2008 13:16) Posted:
|
Actually no point paying the $0.06 now, since the stock is already ex rights as of 10 Jul i.e. existing shareholders are currently holding the rights to buy the warrants at $0.015; folks who buy the shares now will NOT be entitled to the rights.
Also, currently these rights to buy the warrants are trading at $0.005 on the open market till 25 Jul. So theoretically, one can get ownership of the warrants also by buying these rights. To get them converted to shares subsequently, just pay the exercise price of 7c. Total cost = $0.075. In this case, the breakeven would be 8c.
see2eye ( Date: 22-Jul-2008 12:16) Posted:
|
Thank you CWQuah.
So am I right to put it that if anyone willing to pay S$0.07 plus (S$0.07 + Warrant cost) in total and strongly believe it will go to exceed 9c, they must well pay $0.06 now.
For those who are not sure, then they have to bet the share will have to go up higher than 9c with a cost of "insurance of 1.5c", cost of the warrants .
The warrants cost S$0.015 to take up. For every existing 2 shares of CAC, one warrant is issued. Each warrant is convertible to one share of CAC if the exercise price of S$0.07 is paid.
If I dun recall the prospectus conditions wrongly, the warrants will expire 5 yrs from the day the warrants are listed on SGX for trading.
I.e. to say, taking up the warrants now is a bet that within the next 5 yrs, the price of CAC shares will exceed 9c (so as to make holding and converting the warrants worthwhile).
I have a few lots purchased in old day when it is still named Acma.... Could anyone provide view or opinion if it is worth taking up the warrant ? Closing date is end of this month.... Thanks
The names are so close. No wonder the confusion.
Plastic tooling and injection-moulding group China Auto Corp (CAC) and jv partner Dr Schneider Kunststoffwerke GmbH (DS) have been awarded a 5-year contract worth 25 million euros by Audi to produce air-vent plastic modules. It is the first time the German car maker Audi has awarded a contract for the production of complex air-vents to a China-based factory, reflecting its confidence in the capabilities of CAC and DS to meet its stringent quality standards. The contract will satisfy the global requirements for Audi's best-selling model, the A4. The vents will be produced by the JV's wholly owned mould-making factory to be set up in Xiamen, China. Production is expected to start before the end of this year.
CAC executive chairman Quek Sim Pin said: 'We are honoured to be awarded this contract from one of Germany's most prestigious and established car makers. Coupled with DS's 70 years of experience in the production of plastic modules and systems for the automotive industry, we are confident of meeting the high quality standards set by Audi.'
CAC had been trying to make a breakthrough in the premium segment of Europe's automotive industry for 5 years. According to Mr Quek, moving into the high-end segment was not easy for a China-based company, as many European car makers would not accept tools made in China and were unwilling to take a risk. Only in the past 3 years have CAC's efforts paid off, with orders from premium car makers accelerating about 100% yoy. The company believes there will be a growing demand for its high-quality plastic injection moulds, as tools made in Europe are significantly more expensive than those CAC can provide.
'By coming to us they will beable to lower their costs but also maintain high quality standards,' said Mr Quek.
Audi's head of purchasing interior, Michael Frey, said CAC and DS were chosen because of their 'long experience in the business of automotive parts and high expertise with technical and logistical issues'.
CAC's CEO of European Marketing Operations, Graham Wright, said: 'This is a long-term relationship. We hope and believe our successful introduction into this project will be the first of many projects with Audi, and that we will remain a key member of its supply chain for many years to come.'
CAC also indicated that it has plans to produce air-vents for other European car makers, but declined to give names. The Audi contract is not expected to have any material impact on CAC's earnings for the financial year ending Dec 31 '08.
29 Apr 2008 -
PROPOSED RENOUNCEABLE NON-UNDERWRITTEN RIGHTS ISSUE OF UP TO 1,245,201,428
WARRANTS (THE "WARRANTS") AT AN ISSUE PRICE OF S$0.015 FOR EACH WARRANT, EACH
WARRANT CARRYING THE RIGHT TO SUBSCRIBE FOR ONE (1) NEW ORDINARY SHARE (THE
"NEW SHARES") IN THE CAPITAL OF CHINA AUTO CORPORATION LTD. (THE "COMPANY") AT
AN EXERCISE PRICE OF S$0.07 FOR EACH NEW SHARE, ON THE BASIS OF ONE (1) WARRANT
FOR EVERY TWO (2) EXISTING ORDINARY SHARES IN THE CAPITAL OF THE COMPANY HELD
BY THE SHAREHOLDERS OF THE COMPANY AS AT A BOOKS CLOSURE DATE TO BE
DETERMINED, FRACTIONAL ENTITLEMENTS TO BE DISREGARDED
Many confused ChinaACorp with China Auto ? Anyone have further news on this counter ?