Silver Bird Wants To Raise More Capital

On Business Times: Silver Bird hopes to raise working capital

1. Silver Bird hopes to raise working capital
   
   Published: 2010/07/21
   
   BAKERY and confectionery manufacturer Silver Bird Group Bhd hopes to raise up to RM13.65 million from a private placement exercise for working capital.
   
   The firm told Bursa Malaysia yesterday that it is undertaking a private placement of up to 19.5 million new shares of 50 sen each at an issue price of 70 sen.
   
   The shares will be placed out to third party investors to be identified at a later stage, it added.

More working capital????

Now I seriously applaud this company for being able to continuously raise working capital despite its lack of earnings.

Here are some recent capital raising exercises completed by Silver Group:

Jan 2010: SILVER BIRD GROUP BERHAD (“SILVERBIRD” OR “THE COMPANY”) - PRIVATE PLACEMENT OF UP TO TEN PERCENT (10%) OF THE ISSUED AND PAID-UP SHARE CAPITAL OF SILVERBIRD (“PRIVATE PLACEMENT”)

• On behalf of the Board, OSK wishes to announce that the Private Placement has been completed following the listing of 14,060,000 new ordinary shares of RM0.50 each in SilverBird, representing the third and final tranche of the total placement shares comprising 31,376,000 placement shares on the Main Market of Bursa Malaysia Securities Berhad on 19 January 2010.

LOL! OSK Investment Bank!

Have a look at Silver Bird's recent Q4 earnings.

Dec 2009: Quarterly rpt on consolidated results for the financial period ended 31/10/2009 - Made profit of 1.439 million.

Dec 2008: Quarterly rpt on consolidated results for the financial period ended 31/10/2008 - Net loss 21.188 million

Dec 2007: Quarterly rpt on consolidated results for the financial period ended 31/10/2007 - Net loss 18.011 million

Dec 2006: Quarterly rpt on consolidated results for the financial period ended 31/10/2006 - Net loss 48.227 million

Now back in Dec 2009, I posted That Silver Birdie Once More!. In that posting, despite the apparent lack of earnings.

• As you can see an EPS estimate of 1.6 million equates only an eps of 0.5 sen.
  Yeah, an eps of 0.5 sen.
  So how does OSK then value the stock?
  LOL! They use PBV of 1.2x!

LOL!

OSK handles the placement and since there is the lack of earnings, OSK Research uses PBV for the valuation for Silver Bird.

OK. :D

Anyway Silver Bird had a rights issue/warrants completed in 2008 too!

Now the sum raised can be seen in the following quarterly announcement on March 2008: Quarterly rpt on consolidated results for the financial period ended 30/4/2008

Silver Bird managed to raise some 51.8 million back in 2008. Had a couple of share placements and now it still wants to raise more via placements?

Here's Silver Bird last reported earnings: Quarterly rpt on consolidated results for the financial period ended 30/4/2010 (Ooo.. no more losing money. LOL! )