Kim Eng

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#1
KE's share price has been on a tear for the past few months, rising from $1.78 to a high of $2.74 this morning, a meteoric 54% rise in just 3 months!

There are probably 2 more significant pieces of information which mattered during this period, with the 2nd reason being more likely:

1) Opening of its first retail investor centre in Nex to target heartlanders, explained to be aimed at increasing the client base by 20% over the next 3 years. More retail investor centres might be coming up in other heartland malls. A new branding campaign featuring the fortune cat is also aimed towards the same target audience.

2) KE also announced upon being queried by SGX on 17 Dec that "From time to time, the Company is approached by and/or engages various parties in discussions to pursue business opportunities or concerning the strategic direction of the Company, with a view to maximizing value for all shareholders. The Board of Directors of the Company wishes to announce that the Company has received approaches from potential interested parties in relation to a possible acquisition of shares in the capital of the Company. However, this may or may not lead to a general offer being made for the Company. There is no assurance that any definitive or binding agreement will result from these discussions."

Previously, Mitsubishi UFJ offered $166.2 million to more than triple its stake in Kim Eng Holdings Ltd., offering $2.70/share, and has been increasing its stake ever since. It is likely that they will have to offer an amount higher than $2.70 for any subsequent offer. Assuming Q4's results to match Q3's, it would mean offering based on a historical PE of 20 times based on the high of $2.74 alone!
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#2
Maybank Said to Plan $1.4 Billion Bid for Broker Kim Eng

http://www.bloomberg.com/news/2011-01-06...m-eng.html
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#3
Thanks for the link Nick.

This again shows how a substantial run-up in price is always almost followed by something most of us didn't know...
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#4
(06-01-2011, 09:37 AM)Blackjack Wrote: Thanks for the link Nick.

This again shows how a substantial run-up in price is always almost followed by something most of us didn't know...

Well, to be fair I won't agree on the word "always". I guess it's probably "mostly". Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#5
(06-01-2011, 10:02 AM)Musicwhiz Wrote:
(06-01-2011, 09:37 AM)Blackjack Wrote: Thanks for the link Nick.

This again shows how a substantial run-up in price is always almost followed by something most of us didn't know...

Well, to be fair I won't agree on the word "always". I guess it's probably "mostly". Tongue

To be fair...

always almost = mostly ? Big Grin

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#6
(06-01-2011, 10:26 AM)kazukirai Wrote:
(06-01-2011, 10:02 AM)Musicwhiz Wrote:
(06-01-2011, 09:37 AM)Blackjack Wrote: Thanks for the link Nick.

This again shows how a substantial run-up in price is always almost followed by something most of us didn't know...

Well, to be fair I won't agree on the word "always". I guess it's probably "mostly". Tongue

To be fair...

always almost = mostly ? Big Grin

Bingo Big Grin

Just realised the order was wrong -

It is awkward, but not wrong, if you mean "You always stop reading a book before you get to the end of it." There is an idiom, "almost always" meaning usually, normally, but "always almost" is not the same. If you meant "You almost always (= usually) complete reading," you must put those two words in the right order.

Read more: http://wiki.answers.com/Q/Can_you_use_th...z1ADckuxOp

So for good order sake, "This again shows how a substantial run-up in price is almost always followed by something most of us didn't know..."
Big Grin
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#7
Ok thanks got it! This is sounding like an English lesson hehehe... Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#8
Mandatory conditional cash offer has been made for $3.10/share, 1.91 P/B as at 30 September 2010 and historical PE of 23!

Congrats to those with insider news beforehand!
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