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I got out of UE awhile back. This is a classic case of changing fundamentals and I will wait till the dusk settles first..
You can count on the greed of man for the next recession to happen.
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11-06-2013, 10:29 PM
(This post was last modified: 11-06-2013, 10:31 PM by felixleong.)
http://stockbrokerplayspoker.blogspot.sg...ights.html
[Image: UE.png]
[Image: ue+2.png]
Over the last 3 months UE lost about 10% in market value and tomorrow this stock is gonna tank!!!
1 for 1 rights issue at $1.50, with the last close at $2.81 ! That's like close to half price!!!
Given the recent poor market sentiments my gut feel is that UE might open tomorrow morning with a crash towards the $2.00 level.
Investors who had bought this stock thinking it was a value play with $5-6 of assets will feel the pain tomorrow, especially with the recent market correction cash now becomes a very useful holding to purchase down beaten blue chips. I bet the last thing investors would wanna do with their cash is to put it into some stupid rights issue to fund some over priced purchase.
The management has been overly aggressive with their recent WBL acquisition and I strongly believe their actions have little to no value to shareholders.
Morale of the story, don't always just look at the numbers, great value can be destroyed by lousy management. When you bet on the horse make sure the jockey doesn't play you out.
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Just want to check, will this news affect UE E&C?
Or can they be totally viewed as 2 different companies?
Patience is a virtue.
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to sum up crudely if I may, parent ocbc has made ue as a scapegoat to battle against mdm chew of straits trading who netted a cool 80-90m profits in a mere 6 months while ocbc through this rights exercise as underwriter also nets a tidy 9m profits. so who is the carrot head ah?
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11-06-2013, 10:45 PM
(This post was last modified: 11-06-2013, 10:47 PM by felixleong.)
(11-06-2013, 10:33 PM)TheMillennium Wrote: Just want to check, will this news affect UE E&C?
Or can they be totally viewed as 2 different companies?
by right should have no direct effect on ue e&c
however do note that UE is ue e&c's majority shareholder, so the sentiments may drag down its little brother as investors fear of the big brother trying to sell the little brother away at a discount to raise cash for their stupid WBL purchase
(11-06-2013, 10:36 PM)pianist Wrote: to sum up crudely if I may, parent ocbc has made ue as a scapegoat to battle against mdm chew of straits trading who netted a cool 80-90m profits in a mere 6 months while ocbc through this rights exercise as underwriter also nets a tidy 9m profits. so who is the carrot head ah?
ya, honest and very well said
UE is really very F up management
everyone won and made $$ except UE shareholders who will foot the bill starting tomorrow
even OCBC managed to clock a big gain on their disposal of WBL
Good game max
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11-06-2013, 10:52 PM
(This post was last modified: 11-06-2013, 10:53 PM by LionFlyer.)
(11-06-2013, 10:07 PM)pianist Wrote: indeed is a classic case of 'head not so big, wanna wear a big hat'....ah
(11-06-2013, 10:02 PM)LionFlyer Wrote: I got out of UE awhile back. This is a classic case of changing fundamentals and I will wait till the dusk settles first..
wow..impressed by yr nimbleness
Could have been earlier. I think I waited too long as I wanted to see how the takeover played out. To be honest, when the news broke of the takeover of WBL, I had my misgivings as there was honestly no synergy. Should I have sold then? But then again, if the takeover failed (I had assumed STC would have blocked it), I would have exited prematurely.
Ah well, at least I know I won't be sweating over what happens in the morning (night time for me as I am half way round the world now, so I can sleep soundly!)
You can count on the greed of man for the next recession to happen.
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ya now we have benefit of hindsight
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