(18-12-2012, 12:10 PM)money Wrote: [ -> ]I have sold all my shares in the company.. Everything is fine, i just do not like the idea of so many warrants issued by the company, it seems to limit the upside imo
Short-term, it sound logical to divest since dilution is at the peak with conversion of 2013 warrants.
But in mid-term, the company may be able to catch the next opportunities as it did during 2008/9. Since I am poor in timing the market, i will prefer to stay on instead. I may consider increase my stake in future at right time.
Well, i might be wrong...
(19-12-2012, 09:55 AM)CityFarmer Wrote: [ -> ] (18-12-2012, 12:10 PM)money Wrote: [ -> ]I have sold all my shares in the company.. Everything is fine, i just do not like the idea of so many warrants issued by the company, it seems to limit the upside imo
Short-term, it sound logical to divest since dilution is at the peak with conversion of 2013 warrants.
But in mid-term, the company may be able to catch the next opportunities as it did during 2008/9. Since I am poor in timing the market, i will prefer to stay on instead. I may consider increase my stake in future at right time.
Well, i might be wrong...
by opportunities, i think you are referring to the CEO's buying of real estate properties and perhaps reits
Actually, i think you will do a far better job at capturing such opportunities than the company itself..
What i like about the company is more of the the gold and apparel segment. For real estate or reit investment, i would prefer to do my own. (i am not vested in any reit now)
The 2013 warrants would only lead to small dilution. I really cant stand the later warrants, they are very very dilutive
(19-12-2012, 10:27 AM)money Wrote: [ -> ] (19-12-2012, 09:55 AM)CityFarmer Wrote: [ -> ] (18-12-2012, 12:10 PM)money Wrote: [ -> ]I have sold all my shares in the company.. Everything is fine, i just do not like the idea of so many warrants issued by the company, it seems to limit the upside imo
Short-term, it sound logical to divest since dilution is at the peak with conversion of 2013 warrants.
But in mid-term, the company may be able to catch the next opportunities as it did during 2008/9. Since I am poor in timing the market, i will prefer to stay on instead. I may consider increase my stake in future at right time.
Well, i might be wrong...
by opportunities, i think you are referring to the CEO's buying of real estate properties and perhaps reits
Actually, i think you will do a far better job at capturing such opportunities than the company itself..
What i like about the company is more of the the gold and apparel segment. For real estate or reit investment, i would prefer to do my own. (i am not vested in any reit now)
The 2013 warrants would only lead to small dilution. I really cant stand the later warrants, they are very very dilutive
2017 warrants is convertible after 3rd years of issue. So it is still too early to worry about it now, IMO
The company should consider spinning off one of the division, either real estate or the retail side.
As for REITs, it is a good sign that they appoint Mr Bobby Jayaraman as a director. I have read his book Building Wealth Through REITs and it is really very impressive and value for money.
It seemed inevitable that Second Chance needs to issue warrant to reach its billion dollar capitalisation given its high dividend payout. While the company can afford not to reduce its dividend by paying out of the warrant converted in the future, time will be neede before the CEO can execute his insight in the real estate.
(19-12-2012, 12:21 PM)shanrui_91 Wrote: [ -> ]The company should consider spinning off one of the division, either real estate or the retail side.
As for REITs, it is a good sign that they appoint Mr Bobby Jayaraman as a director. I have read his book Building Wealth Through REITs and it is really very impressive and value for money.
It seemed inevitable that Second Chance needs to issue warrant to reach its billion dollar capitalisation given its high dividend payout. While the company can afford not to reduce its dividend by paying out of the warrant converted in the future, time will be neede before the CEO can execute his insight in the real estate.
I think CEO of 2ndchance is a really wonderful person, the way he communicates with shareholders is really sincere.
but i disagree with his goal of the billion dollar cap. All 100-500 million companies want to become 1 billion (just like if i have 100k in my bank today, i would hope to have 300k years later). In the process of achieving his billion dollar capitalisation, i feel he will end up courting short term investors more than long term ones
(19-12-2012, 01:05 PM)money Wrote: [ -> ] (19-12-2012, 12:21 PM)shanrui_91 Wrote: [ -> ]The company should consider spinning off one of the division, either real estate or the retail side.
As for REITs, it is a good sign that they appoint Mr Bobby Jayaraman as a director. I have read his book Building Wealth Through REITs and it is really very impressive and value for money.
It seemed inevitable that Second Chance needs to issue warrant to reach its billion dollar capitalisation given its high dividend payout. While the company can afford not to reduce its dividend by paying out of the warrant converted in the future, time will be neede before the CEO can execute his insight in the real estate.
I think CEO of 2ndchance is a really wonderful person, the way he communicates with shareholders is really sincere.
but i disagree with his goal of the billion dollar cap. All 100-500 million companies want to become 1 billion (just like if i have 100k in my bank today, i would hope to have 300k years later). In the process of achieving his billion dollar capitalisation, i feel he will end up courting short term investors more than long term ones
First of all, I concur with Shanrui's view on the appointment of Bobby as director. It align well with the company's strategy.
The billion dollar capitalisation is a vision. The current strategy of issuing warrants cum high dividends to shareholders, will make its shares more appealing to long term investors than short term ones, IMO
The CEO Mr. Mohamed Salleh converted his 2013 warrant, approx 45 million shares, cost him S$14.5 million. It also just on time to entitle for the coming dividend payout.
With his conversion, approx 75% of 2013 warrant converted. Not sure the reason of other 25%? Not able to figure out any rational reason to keep it open?
http://info.sgx.com/webcoranncatth.nsf/V...E00145DA1/$file/SCPL_FORM1_MRSALLEH_24_12_12.pdf?openelement
The dividends went XD sometime ago, it doesn't matter if you convert now or next year.
Think Salleh is a sneaky CEO
he actively dilutes the shares of existing shareholders, while at the same time increases his own stake. Eventually when it succeeds and becomes a "billion" dollar company, he probably will not have to fork out much to squeeze out everyone else.
(24-12-2012, 08:13 PM)CityFarmer Wrote: [ -> ]The CEO Mr. Mohamed Salleh converted his 2013 warrant, approx 45 million shares, cost him S$14.5 million. It also just on time to entitle for the coming dividend payout.
With his conversion, approx 75% of 2013 warrant converted. Not sure the reason of other 25%? Not able to figure out any rational reason to keep it open?
http://info.sgx.com/webcoranncatth.nsf/V...E00145DA1/$file/SCPL_FORM1_MRSALLEH_24_12_12.pdf?openelement
haha it takes cash to convert the warrants, anyway that's my guess
i was thinking. As a sharehodler taking cash dividends, I get diluted the more he takes scrip and converts warrants. he bascially leaves his money in there.
why not take it private? since currently he owns such a large chunk of the company.