No $ act tough... luckily they have a rock solid shareholder behind them...
Integration of WBL into UEL will be difficult - hard to see where synergistic benefits are coming from apart from the further diversification of core business...
Wrong term everyone will be ok...
Odd Lots
(vested)
(11-06-2013, 09:08 PM)Behappyalways Wrote: [ -> ]share price will come under pressure tomorrow...(no vested interest)
PROPOSED RENOUNCEABLE UNDERWRITTEN 1-FOR-1 RIGHTS ISSUE OF UP TO 326,620,154 NEW ORDINARY SHARES IN THE CAPITAL OF UNITED ENGINEERS LIMITED
http://info.sgx.com/webcoranncatth.nsf/V...700431648/$file/AnntonRightsIssue11Jun2013.pdf?openelement
I got out of UE awhile back. This is a classic case of changing fundamentals and I will wait till the dusk settles first..
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
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.
Just want to check, will this news affect UE E&C?
Or can they be totally viewed as 2 different companies?
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?
(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
(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!)
ya now we have benefit of hindsight
Woah... Hero going to become Zero??
STC got $507.3Mil from accepting the offer for their WBL stake, more than enough for the $489.9Mil, which UE is trying to raise for their 1-for-1 Rights issue. Perhaps UE can approach STC to take up any unwanted Rights... Perhaps if the market really punishes UE shares, STC may even get interested in UE shares (they can still lay their hands on the WBL assets which they were previously so keen on)??
Interesting saga...
