GRP Limited

Number of shares traded yesterday - 36.602m i.e. 26.25% of total number of shares outstanding - 139.407m.

There should be some announcement over the next couple of days.

Cheers!

Interesting comment in half year results announcement:

The special dividend of 4 cents is in response to shareholders' request over a period of time and the cash holding currently exceeding the working capital requirement of the business.

(29-01-2013, 06:21 PM)smallcaps Wrote: Interesting comment in half year results announcement:

The special dividend of 4 cents is in response to shareholders' request over a period of time and the cash holding currently exceeding the working capital requirement of the business.

New Management has taken over since I was laste vested; therefore a change in policy. The previous CEO did not wish to pay out a special dividend for so many years despite shareholders making noise.

I guess this was a company I should have held on longer, but I could not forsee that there would be a change in shareholdings/management.

Oh well, lesson learnt. Be patient!

It's hard to believe that someone has not got hold of the planned special dividend from the price movement for the month of Jan where it moved from 27c to 33c on this lightly traded counter.

Of cos proving it is another matter but we see such things being played out all the time in the stock market. Just another example that there the efficient-market hypothesis is just nonsense because if it was true, the price movement should only have take place tomorrow. (Vested)

GRP has announced (A) Collaboration agreement to develop and manage properties in Myanmar; (b) proposed renounceable non-underwritten rights cum warrants issue.

[ SOURCE ]

The rights issue is quite a massive 3-for-1 at $0.08 which effectively quadrupled the no of shares after the rights issue. And if the additional warrants are exercised, then an additional 418,221,600 shares will be added, or nearly a billion shares in total!

The rights issue will raise net proceeds of $33 million. The exercise of the warrants (if fully exercised) will raise another $33.457 million.

Surged 45% today. Volume traded represents >50% of the free float despite it being a very thinly traded stock, this is a strong indication that the bulk of the trades were repeatitive churns. Classic symptoms of pump and dump.

I can't figure it out. Usually when a company announced such a dilutive rights issue, most of the time, the price adjust down. In the case of GRP, taking into account the attached warrants issue, I was expecting the price to adjust down instead of up.

So what could be driving the price? Is the Myanmar factor such a big factor? Are GRP's plan to move into property development such a positive game changer for the company?

(09-09-2013, 07:59 PM)lonewolf Wrote: I can't figure it out. Usually when a company announced such a dilutive rights issue, most of the time, the price adjust down. In the case of GRP, taking into account the attached warrants issue, I was expecting the price to adjust down instead of up.

So what could be driving the price? Is the Myanmar factor such a big factor? Are GRP's plan to move into property development such a positive game changer for the company?

Nope, my best bet is that this is a concerted pump and dump exercise. Being such a small cap, all it takes is a couple of million dollars and you can drive the price sky high.

The number of unique shares being traded is probably only a fraction of the volume today.

GRP has had a dubious history of large quantities of shares being transacted from 1 party to another for the past 18 months without any explanation given.

The most dramatic episode was when an unknown firm named Gazalle became a substantial holder and appointed 2 youngsters in their early 30s who appeared to have no relevant experience in any professional manner at all as Directors.

This was followed shortly by an ill-conceived speculation in an Australian gold penny stock named Aphrodite. Within a few months Gazalle ceased to be a substantial shareholder and these 2 jokers exited as well, leaving the Company with a substantial impairment as Aphrodite's share price simply collapsed not long after.

(09-09-2013, 08:17 PM)mobo Wrote:

(09-09-2013, 07:59 PM)lonewolf Wrote: I can't figure it out. Usually when a company announced such a dilutive rights issue, most of the time, the price adjust down. In the case of GRP, taking into account the attached warrants issue, I was expecting the price to adjust down instead of up.

So what could be driving the price? Is the Myanmar factor such a big factor? Are GRP's plan to move into property development such a positive game changer for the company?

Nope, my best bet is that this is a concerted pump and dump exercise. Being such a small cap, all it takes is a couple of million dollars and you can drive the price sky high.

The number of unique shares being traded is probably only a fraction of the volume today.

GRP has had a dubious history of large quantities of shares being transacted from 1 party to another for the past 18 months without any explanation given.

The most dramatic episode was when an unknown firm named Gazalle became a substantial holder and appointed 2 youngsters in their early 30s who appeared to have no relevant experience in any professional manner at all as Directors.

This was followed shortly by an ill-conceived speculation in an Australian gold penny stock named Aphrodite. Within a few months Gazalle ceased to be a substantial shareholder and these 2 jokers exited as well, leaving the Company with a substantial impairment as Aphrodite's share price simply collapsed not long after.

IMO, 2 key factors.. 1) Myanmar play..2) In the money - warrant. probably the intrinsic value of warrant worth a lot. ( I am no expert to value what the mother share price to be.. but I will try to if I have the time)

Whether is a pump and dump, it is still too early to say. This stock has been consistently yielding <4% and in some years 11%? in the past 8 years? It has been dead for a long time.. As to the dubious transaction you mentioned previously, most syndicated play stocks will have off exchange transaction without explanation into the build up of a deal. If you are able to spot on something like that.. it maybe a good thing afterall.. This counter probably do not fit the name of "value buy" but probably a short term ride up for some quick bucks!

(09-09-2013, 11:45 PM)DP28 Wrote:

(09-09-2013, 08:17 PM)mobo Wrote:

(09-09-2013, 07:59 PM)lonewolf Wrote: I can't figure it out. Usually when a company announced such a dilutive rights issue, most of the time, the price adjust down. In the case of GRP, taking into account the attached warrants issue, I was expecting the price to adjust down instead of up.

So what could be driving the price? Is the Myanmar factor such a big factor? Are GRP's plan to move into property development such a positive game changer for the company?

Nope, my best bet is that this is a concerted pump and dump exercise. Being such a small cap, all it takes is a couple of million dollars and you can drive the price sky high.

The number of unique shares being traded is probably only a fraction of the volume today.

GRP has had a dubious history of large quantities of shares being transacted from 1 party to another for the past 18 months without any explanation given.

The most dramatic episode was when an unknown firm named Gazalle became a substantial holder and appointed 2 youngsters in their early 30s who appeared to have no relevant experience in any professional manner at all as Directors.

This was followed shortly by an ill-conceived speculation in an Australian gold penny stock named Aphrodite. Within a few months Gazalle ceased to be a substantial shareholder and these 2 jokers exited as well, leaving the Company with a substantial impairment as Aphrodite's share price simply collapsed not long after.

IMO, 2 key factors.. 1) Myanmar play..2) In the money - warrant. probably the intrinsic value of warrant worth a lot. ( I am no expert to value what the mother share price to be.. but I will try to if I have the time)

Whether is a pump and dump, it is still too early to say. This stock has been consistently yielding <4% and in some years 11%? in the past 8 years? It has been dead for a long time.. As to the dubious transaction you mentioned previously, most syndicated play stocks will have off exchange transaction without explanation into the build up of a deal. If you are able to spot on something like that.. it maybe a good thing afterall.. This counter probably do not fit the name of "value buy" but probably a short term ride up for some quick bucks!

I don't think so. GRP ain't the only one into this Myanmar shtick and looking at the amounts raised the project would be a very low profile and minor one. Anyway this Myanmar property adventure isn't news and seems very unlikely to generate 45% gain in one day.

As for warrants being underwater, these are basically just long term rights which are usually offered underwarter anyway. There is nothing intrisic about this whole exercise that warrants a surge. In fact, such heavy cash calls, as lonewolf pointed out, will usually result in selling pressure as holders who are unable/unwilling to make the necessary capital injections cash out.