Design Studio - exploded!

hi, just a query. is there any stated line that says that Deepa cannot offer a price higher than 55 cents? just curious !!!

entdev wrote:

Happin, Pru actually reduced its stake yesterday from 5.98% to 4.69%. Thus Pru is no more a substantial shareholder. Pru might have sold more shares today. As it is no more a major shareholder, it is not required to do any announcement.

yes, prudential actually took the opportunity to sell, this is very troubling, it seems that even they are not holding out for a higher price.. If that\'s the case, what are chances for the fragmented minority shareholders? Share price will most likely fall to 0.55 today.. :side:

29th Jun vol was 5,341,000 shares, Prudential sold 3,300,000 shares, that’s 61.79% of the vol !! Looks like Prudential is very anxious to sell, yes..? All this are not giving a good indication that Prudential are confident of Design Studio\'s prospect, rather, looks more like Prudential had regretted the investment and now trying hard to exit. I believe that Depa will be able to persuade the CEO, Bernard Lim to also sell them his stake(judging that this bugger had sold to them at this price before), plus the ~6% stake from Prudential, Depa should have ~36.5% on hand now. Next is Straits Construction, with 16.05%, will they also become a friendly party to Depa? :side:

There are a few possibility why Prudential sold: a) They found better opportunity elsewhere, so do not want to wait for the possibility of higher offer (if any) b) By reducing their stake to

newbie123: there is no line in the Depa document, but you can count on it - Depa cannot buy at above 55 c from open market or off-market. Makes a mockery of its 55-c offer if it is allowed to do so. as for Pru\'s selling, to add to the list of possible reasons, it could be concerned about future liquidity of the stock. It doesnt want to be stuck, when Depa has soaked up some liquidity. I doubt Pru will sell a lot more as it has to balance price and liquidity and how its own profitability will look. after all, it is a fund manager who is accountable for its performance to clients.

Kim Eng just published today that at 55c, Depa only offers DS FY10 PER of 4.6x or PER of 3.6 (ex-cash). In comparison, Star Publication offered Cityneon, a similarly illiquid stock but lower growth, at 12.5x. Currently, the PER average for the sector is 7.9x. If, using PER of 7.5x, Depa should offer DS at 84c.