This stock is in top vol today with a 0.5 cent rise to 3 cents --- I remember this biz was hit by a scandal and then was suspended for abt a year, and its Chairman's case is still with the courts.
Is the business (under new management) able to come back? Today there is some heavy buying. Anyone knows what is going on ?
JEL stock is firm at 3.5 cents as it will be ‘rescued’ by capital injection of S$10.0 million from Serial.
Serial gets 833.3 million new shares of JEL Holdings at the price of S$0.012 – already in the money!!!
Bonus, bonus - JEL Holdings will grant Serial an option to subscribe for approximately 833.3 million additional JEL Shares at the exercise price of S$0.012 per share.
My friend stil holding JEL from the days when Wallstraits was a big fan of JEL. So long ago, and this stock has reached the point of near extinction now.
0.5 cent. Half a cent a share. My friend wanted to know what to do with a rights issue where he either subscribes at 0.35 cent a share or gets diluted massively. The rights are 4 for 1, so you can imagine how massive the diultion is.
These are very tough times for JEL, I told him. Company is on the watch list and needs to fulfill at least 1 condition or kena de-listed.
There is some profitablity that the company is showing, but it's just above water.
The only positive I can see is that the CEO is underwriting the rights issue -- whatever rights not subscribed, he will pick them up. Assuming zero take-up by others, he will fork out about S$5 m to sweep up everthing and then be 80% owner of JEL.
This guy is going to be either a hero or zero. We will know in the weeks ahead.
Amazing .....my friend emailed me for comment on surprising result of rights issue.
The no-surprise part was only 27.5% of the rights share were subscribed for. This stock is at risk of delisting without an exit offer, in case you don't know. In other words, kena stuck.
The major surprising part was the people who subscribed also subscribed for excess rights such that the total subscription totalled 196.5% !!!!!
I don't think every subscriber also subscribed for excess rights, but those who did, did it in a major way.
I can only venture that these people have strong confidence in the company (or made a big mistake pumping more money into the company).
Time will tell.
For now, all subscribers are in the money. They paid 0.35 cent for the rights shares while the stock closed at 0.6 cent on the market.
Those who subscribed for , and will be alloted, excess shares are even more fortunate.
This is a narrow P&L angle though. These shareholders probably had bought their stock at much much higher prices over the past few years. JEL used to be trading at 20 cent level, according to my friend.
All of a sudden the major shareholders have changed ---- literally overnight.
Sam Goi, Koh Boon Hwee, Gilbert Ee have seen their % holding soar because they got excess rights which most shareholders declined.
The crooked former CEO and founder, Eric Tan, didn't apply for his rights entitlement nor subscribed for excess rights -- his shareholding plunged from 40% to 8%.
My friend is happy happy. JEL is up 50% from 0.4 cent to 0.6 cent. The market is gaining confidence becos Koh Boon Hwee, Sam Goi & Gilbert Ee (the CEO) whacked the excess rights which most shareholders declined to subscribe.
Be careful tho, the $ pumped in is peanuts to Koh Boon Hwee, Sam & maybe even Gilbert. So if JEL cannot turn around, this $ is nothing to these big fish but it would be a painful loss to small time retail investors.
