Written by my colleague, Augustine Chai.. Remisier from Amfraser

There was a champion stock yesterday, Baker Tech, surging almost 20% after lifting from Halt. They are going to sell one of their investment company PPL to YangZiJiang.
Now, from the book value of PPL to Baker Tech, the investment cost them an initial sum of $3Million Sing, while the re-valuation of $5Million Sing (figures are approx). But they are selling the unit for US $155million. while is about $210Million Sing. This will greatly yield the profits of the company. From Per share point of view, Baker Tech Net Assest value will be $0.47 per share. with cash value ofalmost $0.4 per share. Which is incredible. Considering their turn value per annum is only S$75plus million.
Taking all this into considersation, the counter run through the roof and perform really well. Unless the business does not go through, it is definitely worth buying at 47 cents.

Note that Baker still has existing 327 Million warrant non-exercise, but these warrant carry an exercise price of 32 cents, which will significantly increase the company cash position.

After factoring the warrant, the company will have a cash position of 40 cents per share if the deal go through.

Note that on 26th of this month, YangZiJiang will need to place a 10% deposit, if they fail to place the deposit, the deal will not go through and Baker Tech price will fall back to the 34 cents level.

Disclaimer applies