I see bond/warrant issue to Sun Hung Kai could be a super smart move of the mgt to solve the depressed share price at minimal cost to Eratat thru:
1) Eratat buys back 82m shares over 2 yrs and issue those treasury shares to Sun Hung Kai through warrant conversion. The exercise shifts the share from weak retail investors to a strong well known corporate investor, without any share dilution as compared against a share placement approach (which is also inferior due to current depressed share price)
2) Assuming warrant conversion price is 30cts (using the same rate based on past warrant expired in Jan 13) and Eratat managed to buy back 82m shares at avg price of 20cts and drive the share price up, it will gain $8.2m from this exercise, which can be used to cover the interest for the bond.
3) I also expect a dual listing in HK stock exchange is likely since SHK helps companies to list there.
Look out for King Wan Corporation. There is much discussion already on the high dividend yield of 10% p.a. I would also guess that there will be some roadshow in Thailand and the region to promote KTIS, and the heightened awareness will lift King Wan Corp. I expect that the IPO will be a good pop, and lift the value of the KTIS shares that King Wan will hold for a quite while more (ie, a year at least) instead of dumping everything post-IPO. Just my 2 baht guess. Conclusion: Perhaps a 40-cent target is attainable. Now it's 32 cents.
1. Nam Cheong: like the story,like the Cash Flow less.
Why is the Cash Flow so much lower than EPS.
2.Second Chance: also believe the long term outloook is positive.
What I don`t like is the Warrant Overhang and the fact that Overseas Holders don`t seem to qualify for Warrant Bonus Issues.
Isn`t this unequal treatment? PGL
TQ!
Noted that Ching is the sole shareholder of Galaxy, Hume, etc. He is so hardworking! Still running his private companies to do construction while his Oxley baby is going everywhere so aggressively in property development.
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