YZJ Shipbldg SGD    Last:2.12    -0.01

Yangzijiang Chart Updates

YZJ is singing no money no money, i want money.

Why you buy YZJ? because you believe they have billion cash in bank. but now they are asking million from you.

A billionare ask million for you, what you will think?

oldflyingfox      ( Date: 16-Jan-2013 10:58) Posted: The exercise prise is not S$1.23 but about S$1.5, (Warrant Strike Price is RMB7.617). So in order for Citi to sell it to institutional investors and accredited investors, the share price must be close to S$1.5 and with " story" of growing much more than that. It's funny that market sell down on such good news, maybe it is a chance to get more but must have holding power to ride it. phil1314      ( Date: 16-Jan-2013 10:41) Posted: Could it be institutions delinerately shortsell to buy later at bottom prices then deliberately push price up to warrant exercise price level thereafter exercise warrants at $1.23 and exit market with handsome profits? Some analysts recently set TA at around $1.56 level if I am not wrong

 

The exercise prise is not S$1.23 but about S$1.5, (Warrant Strike Price is RMB7.617). So in order for Citi to sell it to institutional investors and accredited investors, the share price must be close to S$1.5 and with " story" of growing much more than that.

It's funny that market sell down on such good news, maybe it is a chance to get more but must have holding power to ride it.

phil1314      ( Date: 16-Jan-2013 10:41) Posted: Could it be institutions delinerately shortsell to buy later at bottom prices then deliberately push price up to warrant exercise price level thereafter exercise warrants at $1.23 and exit market with handsome profits? Some analysts recently set TA at around $1.56 level if I am not wrong. neo8180      ( Date: 16-Jan-2013 10:35) Posted: 20mil is not a lot, hope not something fishy going on...

 

when you are the 1st out of the room, it is not panicking!

but l, how about 1st one chiong in?

small bet, bought some at 1.20, 1.30.

cross fingers.

s100125      ( Date: 16-Jan-2013 10:40) Posted: especially when big brother like citi show of confident in taking up all the warrant issue , there shouldn't be panic selling.

 

Could it be institutions delinerately shortsell to buy later at bottom prices then deliberately push price up to warrant exercise price level thereafter exercise warrants at $1.23 and exit market with handsome profits?

Some analysts recently set TA at around $1.56 level if I am not wrong.

neo8180      ( Date: 16-Jan-2013 10:35) Posted: 20mil is not a lot, hope not something fishy going on...

 

especially when big brother like citi show of confident in taking up all the warrant issue , there shouldn't be panic selling.

 

no sigh la. you never know it might turn around. YZJ has a good history trend on shooting up during 1st quarter.

Flyordie      ( Date: 16-Jan-2013 10:18) Posted: Yes for this. (at 1.105) But still holding 100 lots(long term) Sigh.....  bioer23      ( Date: 16-Jan-2013 09:30) Posted: Managed to cover yesterday

 

20mil is not a lot, hope not something fishy going on...

 

16-01-2013 09:50:53
Yangzijiang falls after announcing warrants issue plan 

SINGAPORE, Jan 16 (Reuters) - Shares in Yangzijiang 
Shipbuilding (Holdings) Ltd  fell 7.7 percent to a 
one-week low on Wednesday on concerns over the potential 
dilution of its stock after it announced plans to issue S$20 
million ($16.32 million) worth of warrants. 
By 0155 GMT, Yangzijiang shares were at S$1.015, with 48.9 
million shares traded, 1.2 times its average daily volume over 
the last five sessions. 
Yangzijiang said it plans to sell 330 million warrants at 
S$0.0605 a piece, and each will carry the right to subscribe to 
one new share at 7.617 yuan ($1.23). [ID:nSNZ1V2500] 
" There is some uncertainty over why the company is raising 
funds. It's not a large amount they are getting and the exercise 
price of the warrant is also quite high considering their share 
price today," said a local trader.

 

I think  the board of directors is confident YZJ   will rise to that level.

 

akchua      ( Date: 16-Jan-2013 10:11) Posted: Hi Paul, you are right, the mother share is definitely better. Warrants is a leveraging tool, you are paying 6.5cent for the right of YZJ. You can buy 15 times more using same amount of cash. If you are confident YZJ will rise beyong $1.565 in 3 years time,  it is a good catch actually. paul1688      ( Date: 16-Jan-2013 10:02) Posted: Any idea how warrants are issued? By open subscription  as as rights to existing YZJ shareholders? Overall this means you buy warrants, you are in theory buying mother share at $1.56.  The gap between conversion price and current price seems too high with a 3-year time premium.  Hopefully some analysts will use methods like Black-Scholes to calculate what should be " fair price" for warrant.  Seems like mother share the better play.  Disclaimer : not vested.

 

Yes for this. (at 1.105)

But still holding 100 lots(long term)

Sigh..... 

bioer23      ( Date: 16-Jan-2013 09:30) Posted: Managed to cover yesterday? Flyordie      ( Date: 15-Jan-2013 13:17) Posted:     BS6     YANGZIJIANG   SG  Buy   100,000    SGD  1.085    Cash    100,000    SGD  1.085        FILL    15-01-2013    11:27:08 AM    Buy | Sell        冷 静 ,  不 要 惊 慌 ...

 

Hi Paul, you are right, the mother share is definitely better.

Warrants is a leveraging tool, you are paying 6.5cent for the right of YZJ.

You can buy 15 times more using same amount of cash.

If you are confident YZJ will rise beyong $1.565 in 3 years time,  it is a good catch actually.

paul1688      ( Date: 16-Jan-2013 10:02) Posted: Any idea how warrants are issued? By open subscription  as as rights to existing YZJ shareholders? Overall this means you buy warrants, you are in theory buying mother share at $1.56.  The gap between conversion price and current price seems too high with a 3-year time premium.  Hopefully some analysts will use methods like Black-Scholes to calculate what should be " fair price" for warrant.  Seems like mother share the better play.  Disclaimer : not vested.

 

Private placement. Will not be listed in SGX. 

paul1688      ( Date: 16-Jan-2013 10:02) Posted: Any idea how warrants are issued? By open subscription  as as rights to existing YZJ shareholders? Overall this means you buy warrants, you are in theory buying mother share at $1.56.  The gap between conversion price and current price seems too high with a 3-year time premium.  Hopefully some analysts will use methods like Black-Scholes to calculate what should be " fair price" for warrant.  Seems like mother share the better play.  Disclaimer : not vested.

 

1.2 The Company has appointed Citigroup Global Markets Limited (“Citi”) as placement manager for the Warrant Issue. The Company has entered into a subscription agreement dated 15 January 2013 with Citi (“Subscription Agreement”), pursuant to which Citi has agreed to subscribe for all the Warrants upon and subject to the terms and conditions of the Subscription Agreement.

aimtowin      ( Date: 16-Jan-2013 10:04) Posted: Straight forward ... If there is no upside why would Citibank be buying? If we know a company wouldn't have prospect I would put my money in... Looking at entering more...

 

Expiring at 29 April 2016.

I will be talking to my Citi broker. Very confident YZJ will exceed $1.565 from now till the expiring date.

The warrant is a good catch, just 6.5 cents.

Price is not capped at all.


 

pseudo      ( Date: 16-Jan-2013 09:55) Posted: 1.56 plus warrant cost. But expire at god knows when. Meaning price is capped? akchua      ( Date: 16-Jan-2013 09:51) Posted: Yes. Citi must be very confident YZJ will goes beyong $1.50 since they are holding all the warrants. People should be buying instead of selling.

 

Straight forward ... If there is no upside why would Citibank be buying? If we know a company wouldn't have prospect I would put my money in... Looking at entering more...

 

Any idea how warrants are issued? By open subscription  as as rights to existing YZJ shareholders? Overall this means you buy warrants, you are in theory buying mother share at $1.56.  The gap between conversion price and current price seems too high with a 3-year time premium.  Hopefully some analysts will use methods like Black-Scholes to calculate what should be " fair price" for warrant.  Seems like mother share the better play. 

Disclaimer : not vested.

 

 

The real story shall be

The container vessel building worsen continually over the next few years, the board believes that the net proceeds from the warrant issue is urgently require to rescue the extremely tight working capital of the comapny and the proceeds arising from the exercise of the warrants will rescue the capital base of the company and to protect the company for facing bankrupt situation.

Ask youself, a company every year earn money since IPO, now looking for money and it is only little money, how bad the company situation are.

pseudo      ( Date: 16-Jan-2013 09:46) Posted: “With the expectation that the market conditions of the shipping industry will improve gradually over the next few years, the board believes that the net proceeds from the warrant issue will further strengthen the working capital of the company and the proceeds arising from the exercise of the warrants will enhance the capital base of the company and provide additional financial flexibility to the group to facilitate the group's future market expansion and explore potential development opportunities which may be brought to its attention,” Yangzijiang said. http://www.seatrade-asia.com/news-headlines/yangzijiang-to-raise-$15m-from-warrant-issue.html

 

1.56 plus warrant cost. But expire at god knows when. Meaning price is capped?

akchua      ( Date: 16-Jan-2013 09:51) Posted: Yes. Citi must be very confident YZJ will goes beyong $1.50 since they are holding all the warrants. People should be buying instead of selling. Sporeguy      ( Date: 16-Jan-2013 09:36) Posted: Am I right that one has to pay $1.50 for each share using the warrant

 

6c warrant price. sounds like getting money to fund dividend?? Why don't cut dividend abit makes more sense

 

48 million shares sold this monry at 7% discount, means 48 million shares bought by someone.