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This one bb is than super solid ,,,,dun push mean dun push but stamach than big,,,,,,keep collecting,,,,,,,,!!!!! Well done
Follow up up up,,,bbbbbbbb
Yoma move ,,,,mr N and contel also join in
We don't have to be confused, please refer to the original MOU back in April this year. Contel will issue 1.165 billion consolidated shares to Yuuzoo shareholders on the basis of $0.50 per consolidated share (after consolidation of 5 into 1 share). The Tranche 2 to 4 of convertible notes will be used to acquire IAH and other future acquisitions and working capital.
nqing87 ( Date: 15-Sep-2013 23:58) Posted:
now im even more confuse lol.. so on 18th sep, is there shares dilution taking place? so is it that concurrently with the capital reduction, there are these tranche taking place? when do all these tranches come into effect and how many shares float are introduced from these tranches? as of 18th sep, i dont think there are going to introduce the floats to about 3billion shares right? in short, can i say that they do capital reduction so that in future, they are able to do some shares placement for the purpose of rto?
clonevil ( Date: 15-Sep-2013 21:52) Posted:
let's put it this way. share dilution will happen when more shares are issued and in this case, it is almost definitely so with the 0% notes because tranche 1 alone increases the total number of floated shares by close to 100 million (refer to circular). with tranches 2, 3 and 4, the number of new shares will increase even more. this is also why, the capital reduction had to take place. without the reduction, if new shares continued to be issued at 4 cents per share, contel won't be able to issue the 0% notes beyond tranche 1 because post tranche 1, the paid up share capital will be around $28m. issuing tranche 2 will exceed the $30m limit, which is why the capital had to be reduced to 1 cent per share so that a lot more shares can be issued. In fact, I won't be surprised if further capital reduction takes place in future since almost 5 billion new shares have to be issued to YuuZoo for the rto and the current authorised share capital is still below that.
now on the point of share price dilution, we need to differentiate between 2 types of new issue. if the new equity issue is in the form, of say, employee stock options to remunerate directors, then the threat of share price dilution is significant if the amount of new shares issue is substantial since the company is not getting fresh injection of capital in return for new shares issued. However, if the new equity issue is in the form of secondary IPOs or convertible notes, then the share price dilution THEORETICALLY shouldn't be significant because the new shares are issued in return for fresh capital. Hence, net asset value per share as a proxy of share value wouldn't fall substantially. In fact, for a company like contel which before the 0% notes was facing serious cash flow difficulties, fresh capital may even be seen as beneficial for its share price since there's less risk regarding the company as a going concern.
nonetheless, I can understand where bro Aberdeen is coming from. Technically, with authorised share capital now increased to 3 billion shares, contel could issue a huge number of shares without much fresh capital, hence significantly devaluing contel's share price. THAT SAID, contel won't be able to issue so many additional shares without shareholder's approval at another sgm. so beyond the new shares from the convertible 0% notes and other unexercised warrants, the likelihood of billions of new shares being issued is low. at least, we will gain notice of it through some sgm circular first, asking for shareholders' approval. breathe easy |
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Bull's eye master! :)
Tomique ( Date: 15-Sep-2013 20:08) Posted:
As I mentioned before, increasing authorized capital (AC) or even decreasing it does not have any impact on the current status quo of a listed company's financials.
The increase is usually made to be in line with future direction of the company. Firstly in the practice of filing a Memorandum and Articles of Association with the authority (Registrar of Companies under the Companies Act of a country, before a company can do business) an authorized capital could be $2, and a fully paid up capital of also $2 thus giving rise to such a thing as a $2 company. Subsequently it can increase the capital but because of its AC of $2, it has to increase it for it to issue additional capital. To increase the AC to say $10 million, the official AC has to be increased by 9,999,98 shares of $1.00 each, and whether the company issues one more share, 1 million more shares or 9 million shares more, the equivalent amount of money must be paid up or banked into the company and the new total amount of paid up will be known as the Issued Capital of the company. .
Contel registered AC is 750 million shares of 4 US Cents each. This gives a calculation of paid up capital of US$30 million If the 750 million is fully issued, then the official Paid up Capital is $30 million. Thus when fully paid up, to comply with the Bermuda's regulation, no more shares could be issued. But because there is RTO at hand, there must be rooms for the directors to issue new shares otherwise it would infringe the law.
Because 750 million x 4 US ct per share = US$30 million paid up, then
3 Billion share x 1 US ct per share = US$30 million paid up.
Company still at status quo, shareholders not shortchanged!!!
Only a smart way to do things to comply with regulations by the directors.
Shareholders are looking forward to the RTO!!!
Hope it explains to those who don't understand about authorized capital and issued capital. Cheers.
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now im even more confuse lol.. so on 18th sep, is there shares dilution taking place? so is it that concurrently with the capital reduction, there are these tranche taking place? when do all these tranches come into effect and how many shares float are introduced from these tranches? as of 18th sep, i dont think there are going to introduce the floats to about 3billion shares right? in short, can i say that they do capital reduction so that in future, they are able to do some shares placement for the purpose of rto?
clonevil ( Date: 15-Sep-2013 21:52) Posted:
let's put it this way. share dilution will happen when more shares are issued and in this case, it is almost definitely so with the 0% notes because tranche 1 alone increases the total number of floated shares by close to 100 million (refer to circular). with tranches 2, 3 and 4, the number of new shares will increase even more. this is also why, the capital reduction had to take place. without the reduction, if new shares continued to be issued at 4 cents per share, contel won't be able to issue the 0% notes beyond tranche 1 because post tranche 1, the paid up share capital will be around $28m. issuing tranche 2 will exceed the $30m limit, which is why the capital had to be reduced to 1 cent per share so that a lot more shares can be issued. In fact, I won't be surprised if further capital reduction takes place in future since almost 5 billion new shares have to be issued to YuuZoo for the rto and the current authorised share capital is still below that.
now on the point of share price dilution, we need to differentiate between 2 types of new issue. if the new equity issue is in the form, of say, employee stock options to remunerate directors, then the threat of share price dilution is significant if the amount of new shares issue is substantial since the company is not getting fresh injection of capital in return for new shares issued. However, if the new equity issue is in the form of secondary IPOs or convertible notes, then the share price dilution THEORETICALLY shouldn't be significant because the new shares are issued in return for fresh capital. Hence, net asset value per share as a proxy of share value wouldn't fall substantially. In fact, for a company like contel which before the 0% notes was facing serious cash flow difficulties, fresh capital may even be seen as beneficial for its share price since there's less risk regarding the company as a going concern.
nonetheless, I can understand where bro Aberdeen is coming from. Technically, with authorised share capital now increased to 3 billion shares, contel could issue a huge number of shares without much fresh capital, hence significantly devaluing contel's share price. THAT SAID, contel won't be able to issue so many additional shares without shareholder's approval at another sgm. so beyond the new shares from the convertible 0% notes and other unexercised warrants, the likelihood of billions of new shares being issued is low. at least, we will gain notice of it through some sgm circular first, asking for shareholders' approval. breathe easy.
nqing87 ( Date: 15-Sep-2013 21:04) Posted:
| hi bro, thanks for the explanation.. so at this point in time, there shouldnt be any effect on the share price theoretically 'cos of this capital reduction.. but am i right to say that after this capital reduction, i think the next step contel will do is to do shares placement in order to get the money for the rto? if so, then the theoretical price of contel should fall, 'cos of shares dilution.. then again, most of the shares placement usually result in gain of share price, due to the good market sentiment 'cos of the purpose associated with the placement. |
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btw, am I the only person excited by the fact that IAH games and YuuZoo's website designs are almost identical when the proposed acquisition is conditional on YuuZoo's listing? lol
let's put it this way. share dilution will happen when more shares are issued and in this case, it is almost definitely so with the 0% notes because tranche 1 alone increases the total number of floated shares by close to 100 million (refer to circular). with tranches 2, 3 and 4, the number of new shares will increase even more. this is also why, the capital reduction had to take place. without the reduction, if new shares continued to be issued at 4 cents per share, contel won't be able to issue the 0% notes beyond tranche 1 because post tranche 1, the paid up share capital will be around $28m. issuing tranche 2 will exceed the $30m limit, which is why the capital had to be reduced to 1 cent per share so that a lot more shares can be issued. In fact, I won't be surprised if further capital reduction takes place in future since almost 5 billion new shares have to be issued to YuuZoo for the rto and the current authorised share capital is still below that.
now on the point of share price dilution, we need to differentiate between 2 types of new issue. if the new equity issue is in the form, of say, employee stock options to remunerate directors, then the threat of share price dilution is significant if the amount of new shares issue is substantial since the company is not getting fresh injection of capital in return for new shares issued. However, if the new equity issue is in the form of secondary IPOs or convertible notes, then the share price dilution THEORETICALLY shouldn't be significant because the new shares are issued in return for fresh capital. Hence, net asset value per share as a proxy of share value wouldn't fall substantially. In fact, for a company like contel which before the 0% notes was facing serious cash flow difficulties, fresh capital may even be seen as beneficial for its share price since there's less risk regarding the company as a going concern.
nonetheless, I can understand where bro Aberdeen is coming from. Technically, with authorised share capital now increased to 3 billion shares, contel could issue a huge number of shares without much fresh capital, hence significantly devaluing contel's share price. THAT SAID,
contel won't be able to issue so many additional shares without shareholder's approval at another sgm. so beyond the new shares from the convertible 0% notes and other unexercised warrants, the likelihood of billions of new shares being issued is low. at least, we will gain notice of it through some sgm circular first, asking for shareholders' approval. breathe easy.
nqing87 ( Date: 15-Sep-2013 21:04) Posted:
hi bro, thanks for the explanation.. so at this point in time, there shouldnt be any effect on the share price theoretically 'cos of this capital reduction.. but am i right to say that after this capital reduction, i think the next step contel will do is to do shares placement in order to get the money for the rto? if so, then the theoretical price of contel should fall, 'cos of shares dilution.. then again, most of the shares placement usually result in gain of share price, due to the good market sentiment 'cos of the purpose associated with the placement..
Tomique ( Date: 15-Sep-2013 20:08) Posted:
As I mentioned before, increasing authorized capital (AC) or even decreasing it does not have any impact on the current status quo of a listed company's financials.
The increase is usually made to be in line with future direction of the company. Firstly in the practice of filing a Memorandum and Articles of Association with the authority (Registrar of Companies under the Companies Act of a country, before a company can do business) an authorized capital could be $2, and a fully paid up capital of also $2 thus giving rise to such a thing as a $2 company. Subsequently it can increase the capital but because of its AC of $2, it has to increase it for it to issue additional capital. To increase the AC to say $10 million, the official AC has to be increased by 9,999,98 shares of $1.00 each, and whether the company issues one more share, 1 million more shares or 9 million shares more, the equivalent amount of money must be paid up or banked into the company and the new total amount of paid up will be known as the Issued Capital of the company. .
Contel registered AC is 750 million shares of 4 US Cents each. This gives a calculation of paid up capital of US$30 million If the 750 million is fully issued, then the official Paid up Capital is $30 million. Thus when fully paid up, to comply with the Bermuda's regulation, no more shares could be issued. But because there is RTO at hand, there must be rooms for the directors to issue new shares otherwise it would infringe the law.
Because 750 million x 4 US ct per share = US$30 million paid up, then
3 Billion share x 1 US ct per share = US$30 million paid up.
Company still at status quo, shareholders not shortchanged!!!
Only a smart way to do things to comply with regulations by the directors.
Shareholders are looking forward to the RTO!!!
Hope it explains to those who don't understand about authorized capital and issued capital. Cheers.
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hi bro, thanks for the explanation.. so at this point in time, there shouldnt be any effect on the share price theoretically 'cos of this capital reduction.. but am i right to say that after this capital reduction, i think the next step contel will do is to do shares placement in order to get the money for the rto? if so, then the theoretical price of contel should fall, 'cos of shares dilution.. then again, most of the shares placement usually result in gain of share price, due to the good market sentiment 'cos of the purpose associated with the placement..
Tomique ( Date: 15-Sep-2013 20:08) Posted:
As I mentioned before, increasing authorized capital (AC) or even decreasing it does not have any impact on the current status quo of a listed company's financials.
The increase is usually made to be in line with future direction of the company. Firstly in the practice of filing a Memorandum and Articles of Association with the authority (Registrar of Companies under the Companies Act of a country, before a company can do business) an authorized capital could be $2, and a fully paid up capital of also $2 thus giving rise to such a thing as a $2 company. Subsequently it can increase the capital but because of its AC of $2, it has to increase it for it to issue additional capital. To increase the AC to say $10 million, the official AC has to be increased by 9,999,98 shares of $1.00 each, and whether the company issues one more share, 1 million more shares or 9 million shares more, the equivalent amount of money must be paid up or banked into the company and the new total amount of paid up will be known as the Issued Capital of the company. .
Contel registered AC is 750 million shares of 4 US Cents each. This gives a calculation of paid up capital of US$30 million If the 750 million is fully issued, then the official Paid up Capital is $30 million. Thus when fully paid up, to comply with the Bermuda's regulation, no more shares could be issued. But because there is RTO at hand, there must be rooms for the directors to issue new shares otherwise it would infringe the law.
Because 750 million x 4 US ct per share = US$30 million paid up, then
3 Billion share x 1 US ct per share = US$30 million paid up.
Company still at status quo, shareholders not shortchanged!!!
Only a smart way to do things to comply with regulations by the directors.
Shareholders are looking forward to the RTO!!!
Hope it explains to those who don't understand about authorized capital and issued capital. Cheers.
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As I mentioned before, increasing authorized capital (AC) or even decreasing it does not have any impact on the current status quo of a listed company's financials.
The increase is usually made to be in line with future direction of the company. Firstly in the practice of filing a Memorandum and Articles of Association with the authority (Registrar of Companies under the Companies Act of a country, before a company can do business) an authorized capital could be $2, and a fully paid up capital of also $2 thus giving rise to such a thing as a $2 company. Subsequently it can increase the capital but because of its AC of $2, it has to increase it for it to issue additional capital. To increase the AC to say $10 million, the official AC has to be increased by 9,999,98 shares of $1.00 each, and whether the company issues one more share, 1 million more shares or 9 million shares more, the equivalent amount of money must be paid up or banked into the company and the new total amount of paid up will be known as the Issued Capital of the company. .
Contel registered AC is 750 million shares of 4 US Cents each. This gives a calculation of paid up capital of US$30 million If the 750 million is fully issued, then the official Paid up Capital is $30 million. Thus when fully paid up, to comply with the Bermuda's regulation, no more shares could be issued. But because there is RTO at hand, there must be rooms for the directors to issue new shares otherwise it would infringe the law.
Because 750 million x 4 US ct per share = US$30 million paid up, then
3 Billion share x 1 US ct per share = US$30 million paid up.
Company still at status quo, shareholders not shortchanged!!!
Only a smart way to do things to comply with regulations by the directors.
Shareholders are looking forward to the RTO!!!
Hope it explains to those who don't understand about authorized capital and issued capital. Cheers.
also like to have someone to always keep in check of the bullish behaviour, so im more than welcome bro aberdeen to post some feedback & do a reality check on counters.. i believe bro aberdeen is more of a shortist, as he is generally more negative about counters and have yet to see him giving a bullish comment to any counters so far, so sometimes i also do wonder if he is giving his honest feedback or not (i assume he is).. i dont think he is talking about TP here.. the topic is more of clarifying of facts.. the topic he was discussing seem to me that there is share dilution from 750m to 3billion shares after capital reduction, which i dont think is correct (unless i misinterpret what my broker said).. he is also comparing it with CNA placement of shares, which further states that he is talking about dilution of shares, and not TP.. im just a newbie investor, so i dunno how this capital reduction is going to affect market sentiment & their TP.. but theoretically speaking again, price should not drop with capital reduction as there is no share dilution or share split, if price does increase or fall, it's the market sentiment.. alot of things we can only say in theory, but at the end of the day, most doesnt follow in theory.. otherwise all those economists/analysts are rich people already.. if contel really go through this RTO successfully, i wouldnt be surprise if the market sentiment gives it more than 10cents as per what yuuzoo mention last time.. as much as possible, i dont like to give subjective views, 'cos that gives unnecessary info that may be misleading.. in summary, dont follow what people said.. read (about info, not subjective views), assess, make own decisions.. just to sidetrack, those interested in technical analysis can visit bro stockcham & his fellow " committee members" .. i feel they are rather accurate in their analysis, and are helpful to give their opinions even on counters that they did not vest in..
vincente ( Date: 15-Sep-2013 16:53) Posted:
I think what bro aberdeen is drving at is the TP.With a mind boggling increase of shares from 0.75M to 3BILLION the TP will no longer be 10c.This 10c was calculated based on 0.75M shares.If base on current px,it may look too X.Haha.bro nqing,can you advise what is the new TP then based on 3 billion shares if the RTO is successful??
Must say kudos to bro aberdeen for his non invested views which I think is very benefical for those undecided.Can see that he updated all info accordingly whereas vested guys only post positive news and blocked out the negatives.I also have been following this counter bcos I have lost more than 9K+ before.Luckily I have make the right decision to cut and reinvest in another counter which I have made more than 36K recently.Cash in account alrdy.Wife so happy for me.Haha.
nqing87 ( Date: 14-Sep-2013 17:50) Posted:
| hi bro, some bro had already explained in this thread weeks ago about the effect of capital reduction.. this is not the same as share placement, where u introduce more shares floating in the market.. so this is not dilution.. and this is also not splitting of shares, and therefore, shares price theoretically speaking, will not drop.. in summary, we do not know what the market thinks of this capital reduction (if it falls, it's not 'cos u are right, it's what market thinks), but as what the bro & my broker said, theoretical price of this share is not going to drop 'cos of capital reduction.. i shall see if the floats really do increase from 0.750 to 3billion shares when capital reduction takes place, to see if u or my broker & the other bro is right.. hope what my broker and that bro said are not wrong. |
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I think what bro aberdeen is drving at is the TP.With a mind boggling increase of shares from 0.75M to 3BILLION the TP will no longer be 10c.This 10c was calculated based on 0.75M shares.If base on current px,it may look too X.Haha.bro nqing,can you advise what is the new TP then based on 3 billion shares if the RTO is successful??
Must say kudos to bro aberdeen for his non invested views which I think is very benefical for those undecided.Can see that he updated all info accordingly whereas vested guys only post positive news and blocked out the negatives.I also have been following this counter bcos I have lost more than 9K+ before.Luckily I have make the right decision to cut and reinvest in another counter which I have made more than 36K recently.Cash in account alrdy.Wife so happy for me.Haha.
nqing87 ( Date: 14-Sep-2013 17:50) Posted:
hi bro, some bro had already explained in this thread weeks ago about the effect of capital reduction.. this is not the same as share placement, where u introduce more shares floating in the market.. so this is not dilution.. and this is also not splitting of shares, and therefore, shares price theoretically speaking, will not drop.. in summary, we do not know what the market thinks of this capital reduction (if it falls, it's not 'cos u are right, it's what market thinks), but as what the bro & my broker said, theoretical price of this share is not going to drop 'cos of capital reduction.. i shall see if the floats really do increase from 0.750 to 3billion shares when capital reduction takes place, to see if u or my broker & the other bro is right.. hope what my broker and that bro said are not wrong..
Aberdeen123 ( Date: 14-Sep-2013 13:09) Posted:
Shares of contel will being reduced from US$0.04 to US$0.01 and the number of shares in the Company's authorised share capital will be increased from 750 million shares to 3 billion shares on 18 Sep 13.
Look at CNA,px drop quite substantially past few trading session.What is the real reasons??Come 16 Sep 13, 60 million new shares will be added to the company's float of 350 million.CNA's 60 million shares are placed out and accepted by private investors however contel is not. Hope the px can rise like many hope to...ultimately the market will decide.
Gd luck.
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hi bro, some bro had already explained in this thread weeks ago about the effect of capital reduction.. this is not the same as share placement, where u introduce more shares floating in the market.. so this is not dilution.. and this is also not splitting of shares, and therefore, shares price theoretically speaking, will not drop.. in summary, we do not know what the market thinks of this capital reduction (if it falls, it's not 'cos u are right, it's what market thinks), but as what the bro & my broker said, theoretical price of this share is not going to drop 'cos of capital reduction.. i shall see if the floats really do increase from 0.750 to 3billion shares when capital reduction takes place, to see if u or my broker & the other bro is right.. hope what my broker and that bro said are not wrong..
Aberdeen123 ( Date: 14-Sep-2013 13:09) Posted:
Shares of contel will being reduced from US$0.04 to US$0.01 and the number of shares in the Company's authorised share capital will be increased from 750 million shares to 3 billion shares on 18 Sep 13.
Look at CNA,px drop quite substantially past few trading session.What is the real reasons??Come 16 Sep 13, 60 million new shares will be added to the company's float of 350 million.CNA's 60 million shares are placed out and accepted by private investors however contel is not. Hope the px can rise like many hope to...ultimately the market will decide.
Gd luck.
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Yes,minimum invest and maximum gain coming soon,,,,
You still don't get it and in lost. Even after the capital reduction there is no change in the shareholding interest and has nothing to do with the share price in the market. The authorised share capital increase also has nothing to do with the existing number of issued shares. It is just an increase in the authorised share capital since the par value has decreased. This has to be increased so the company can meet the minimum requirement set by SGX. Lastly, what Contel is doing now can't be compared to CNA. Both companies are doing different corporate actions.
Aberdeen123 ( Date: 14-Sep-2013 13:09) Posted:
Shares of contel will being reduced from US$0.04 to US$0.01 and the number of shares in the Company's authorised share capital will be increased from 750 million shares to 3 billion shares on 18 Sep 13.
Look at CNA,px drop quite substantially past few trading session.What is the real reasons??Come 16 Sep 13, 60 million new shares will be added to the company's float of 350 million.CNA's 60 million shares are placed out and accepted by private investors however contel is not. Hope the px can rise like many hope to...ultimately the market will decide.
Gd luck.
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hope contel can joint as a Internet banking system follow alibaba and tendent,both is a giant of Internet coy,may be this time ask temasek and Singtel to support created a Internet banking group,
Shares of contel will being reduced from US$0.04 to US$0.01 and the number of shares in the Company's authorised share capital will be increased from 750 million shares to 3 billion shares on 18 Sep 13.
Look at CNA,px drop quite substantially past few trading session.What is the real reasons??Come 16 Sep 13, 60 million new shares will be added to the company's float of 350 million.CNA's 60 million shares are placed out and accepted by private investors however contel is not. Hope the px can rise like many hope to...ultimately the market will decide.
Gd luck.
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This is the minimum invest and maximum return in making.....Super bbbb is inside .....hope Peter lim and four remiser king all come here for cheap buy and minimum invest maximum gain in making
Yuupay is something similar to paypal belongs to eBay. Hopefully one fine day, yuupay will be bought over by eBay, including yuuzoo perhaps, hehe. For eBay, half a billion USD is a small peanut to them. So the potential is bright. Cheers!
1963411 ( Date: 14-Sep-2013 00:39) Posted:
Just a gentle reminder, if we are buying Contel Corp (OJ4) now, we are not buying Contel's existing business. We are buying YuuZoo Corporation and its subsidiaries.. The linkage below will give some insights to YuuZoo's latest business updates.
http://www.yuucorp.com/news021.html |
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Twitter going to confirm iPo listed at USA soon,the fever will flood to china alibaba and hk Internet relAted Coy.....Singapore only artivision and contel can represent as a Internet games and social Internet coy .temasek just sold out tudou coy gain three time of profit,,,hope temasek can use the money divest into local Internet coy contel and artivision follow the hot Internet fever flood over the world, this time is real Internet company not like 2001internet babble. So contel got more room to survive and share price is very cheap at now......40cts and above may be come true if temasek holding joint in ,we will see a Internet fever like mine coy fever bombard and a lot new Internet Coy will created,,,,,so a lot of going to happen and effect look like near and near,,,,,above 0.07 cts is very cheap because the ppl haven't seen the Internet fever going to happen soon,,,,come on if you got spare money and this is a time for so call accumulate season,,,,,,,,,huat ah
