2nd Chance Properties

second chance seem to become the active speculator

(31-08-2012, 10:13 AM)Drizzt Wrote: second chance seem to become the active speculator

I will regard second chance as value investor, instead of speculator

The historical track record of Mr. Mohamed Salleh Marican showed that he is not a short-term risk taker i.e. speculator, rather than long-term, value conscious investor i.e. value investor

Interesting....

What's their purpose of issuing free warrants every 3-4 years?

The way I see it, it's a form of Equity Fund Raising for the future. At the point of issue, it doesn't make sense to convert (Conversion Price is higher than Market) and I believe they do impose conditions that it can only be converted after 2 years (?). So, ya, I think it's a bet by the company that if they can add value to the company, the share price will go up and in the future, they'll continue to get new source of funds (from warrants conversion) in a more gradual manner (not all will convert at the same time unless it's near expiration) and they can slowly deploy such funds to expand their biz (eg. can take their time to acquire retail units only if the price is right).

The current situation is quite comical...

They're getting 32ct (from conversion of Wrt13) and they're using it to do Share Buy Back @ 39ct. They're even selling Retail Shops...

So, it looks like a situation where they think Retail Shop prices are at a peak. That's why sell Retail Shops + Excess Cash from Warrant Conversion not deployed for expanding Property Biz. In fact, they must be thinking that their share price is so undervalued that they'd rather do Shares Buy Back @ 39ct!

Look at it in a comical way... If for every Warrant that got converted @ 32ct is used to do an equal number of Share Buy Back @ 39ct, they're wiping out 7ct cash... Funny??

<Vested>

(31-08-2012, 10:45 AM)KopiKat Wrote: Interesting....

What's their purpose of issuing free warrants every 3-4 years?

The way I see it, it's a form of Equity Fund Raising for the future. At the point of issue, it doesn't make sense to convert (Conversion Price is higher than Market) and I believe they do impose conditions that it can only be converted after 2 years (?). So, ya, I think it's a bet by the company that if they can add value to the company, the share price will go up and in the future, they'll continue to get new source of funds (from warrants conversion) in a more gradual manner (not all will convert at the same time unless it's near expiration) and they can slowly deploy such funds to expand their biz (eg. can take their time to acquire retail units only if the price is right).

The current situation is quite comical...

They're getting 32ct (from conversion of Wrt13) and they're using it to do Share Buy Back @ 39ct. They're even selling Retail Shops...

So, it looks like a situation where they think Retail Shop prices are at a peak. That's why sell Retail Shops + Excess Cash from Warrant Conversion not deployed for expanding Property Biz. In fact, they must be thinking that their share price is so undervalued that they'd rather do Shares Buy Back @ 39ct!

Look at it in a comical way... If for every Warrant that got converted @ 32ct is used to do an equal number of Share Buy Back @ 39ct, they're wiping out 7ct cash... Funny??

<Vested>

Bingo, i had the same view on the warrants issued. It is a useful tool to raise fund in gradual manner, to facilitate the company overall investment strategy.

There is two (2) existing warrants, 2ndChance W130927 and 2ndChance W170724. The W130927 expiring soon on 27 September 2013. The W170724 is the bonus warrants awarded recently to shareholder, which will expire five (5) year from issue date i.e. 2017

The exercise price of W130927 is $0.32, adjusted from $0.40 recently after bonus share awarded. Remaining warrant is 147 mils as the last update.

The exercise price of W170724 is $0.40. Exercise-able only after three (3) years from issue date (diff from yours?). Total warrants issued are 577 mils.

yesterday (3 sep), 2nd chance made another round of stock repurchase. 678K shares were repurchased.

this morning, a total of 15mil shares have been traded. i have not seen 2nd chance being so active in quite awhile. it will be interesting to see if it's caused by the repurchased or some institutional investor

(04-09-2012, 01:21 PM)changwk Wrote: yesterday (3 sep), 2nd chance made another round of stock repurchase. 678K shares were repurchased.

this morning, a total of 15mil shares have been traded. i have not seen 2nd chance being so active in quite awhile. it will be interesting to see if it's caused by the repurchased or some institutional investor

I am also closely monitoring...

With the trend it is going, the management seem very confidence that the current market price is under-value.

More than 20 Mils share purchase so far i.e. ~$8 Mils spend, ~65% of FY2011 full year dividend.

(04-09-2012, 01:21 PM)changwk Wrote: yesterday (3 sep), 2nd chance made another round of stock repurchase. 678K shares were repurchased.

this morning, a total of 15mil shares have been traded. i have not seen 2nd chance being so active in quite awhile. it will be interesting to see if it's caused by the repurchased or some institutional investor

I'm betting that it's their Shares Buy-Back. As of yesterday, total Buy Back = 20,471,000 (4.35%). With a mandate of 10%, Bal = 26.588Mil more shares. The mandate also allows for a max. price of 105% of Average Closing Price of 5 mkt days, which I calculate to be $0.4116. So, if my guess is correct, the cap today for their Share Buy Back ought to be 41ct.

The picture will be clearer after mkt close.

PS. IIRC, for Shares Buy-Back, they may have to cease for a 30-days period before their 1H or FY results announcement, which ought to be very soon.

(04-09-2012, 02:28 PM)KopiKat Wrote: I'm betting that it's their Shares Buy-Back. As of yesterday, total Buy Back = 20,471,000 (4.35%). With a mandate of 10%, Bal = 26.588Mil more shares. The mandate also allows for a max. price of 105% of Average Closing Price of 5 mkt days, which I calculate to be $0.4116. So, if my guess is correct, the cap today for their Share Buy Back ought to be 41ct.

The picture will be clearer after mkt close.

PS. IIRC, for Shares Buy-Back, they may have to cease for a 30-days period before their 1H or FY results announcement, which ought to be very soon.

Minor correction, IIRC, it is 14-days for 1H and 30-days for FY result announcement. The same applies to insider buying e.g. directors

To hit the limit of 10% of share buy-back mandate, i.e. ~$18 Mils, it's is more than last FY dividend of ~$12 Mils. Will it impact this FY dividend?

i concur that management must be very confident with their FY 2012 results in order to repurchase 20mil of shares.
They must be using the funds coming in from the rights issue and dividend from their REITs holdings.

---

2nd chance only repurchased 551k of shares according to the latest SGX announcement

so, who bought the rest??

(04-09-2012, 02:28 PM)KopiKat Wrote:

(04-09-2012, 01:21 PM)changwk Wrote: yesterday (3 sep), 2nd chance made another round of stock repurchase. 678K shares were repurchased.

this morning, a total of 15mil shares have been traded. i have not seen 2nd chance being so active in quite awhile. it will be interesting to see if it's caused by the repurchased or some institutional investor

I'm betting that it's their Shares Buy-Back. As of yesterday, total Buy Back = 20,471,000 (4.35%). With a mandate of 10%, Bal = 26.588Mil more shares. The mandate also allows for a max. price of 105% of Average Closing Price of 5 mkt days, which I calculate to be $0.4116. So, if my guess is correct, the cap today for their Share Buy Back ought to be 41ct.

The picture will be clearer after mkt close.

PS. IIRC, for Shares Buy-Back, they may have to cease for a 30-days period before their 1H or FY results announcement, which ought to be very soon.

Out of ~16 mils share transacted today, only half a mils share is bought back by company, the rest is by other market players.

Wow, suddenly it capture the interest of major market players, who have more optimistic view than the management. The share bought-back by company is always stay below $0.40, but lots of transaction today with price above $0.40