Ee Beng Heng's comment on SCGBHD. All Comments

Ee Beng Heng
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Can see that profits increases @ Qtr. On the uptrend, but affected by Placement at 1.99. Demand for Cables very strong. Good chance of strong rebound. Call wrt CH, low premium relative to Expiry date and Exercise Price.
Muhammad Asyraf Azmi
hold!... hold
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KW Chin
PP 1.99 means company sell their shares at 1.99 to boost cash?
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trading stock
KW Chin, not that way la.. just create new share to sell to private investors.
What is the effect? Profit sharing will be diluted among all shares
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KW Chin
Meaning for example currently total shares = 1 billion shares.

If they PP 100 Million shares at rm2,
Then total shares becomes 1.1 billion shares?
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Kim Hock Goh
@KWChin yes. Then the company will have extra RM200m cash in their war chest to go for expansion by building more factories. This is the cheapest way to obtain fund compared to rights issue or bank loan. SCGBhd no need had to do so much administrative tasks and save on interest expenses. In the next cash flow statement, you will be able to see the extra cash in Financing Activities segment.
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KW Chin
@kim hock goh,
Thanks sifu for enlightening.
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