Tuesday, September 07, 2010

SAAG Wants Your Money Again!

SAAG Consolidated was on the news last Friday. It wants to raise funds via rights issue and exchangeable bonds. Yeah, it wants the investing public to put more money into their company again!

  • SAAG Consolidated (M) Bhd will raise some RM416 million via several proposals such as a rights issue, exchangeable bonds and/or irredeemable convertible preference shares.

    SAAG told Bursa Malaysia yesterday that the funds raised will be used to increase shareholders’ funds, strengthen capital base, repay borrowings and for business expansion.

To be precise..

  • (i) Proposed renounceable two (2) call rights issue of up to 5,200,549,005 new ordinary shares of RM0.10 each in SAAG (“Rights Share(s)”) on the basis of five (5) Rights Shares for every two (2) existing ordinary shares of RM0.10 each held in SAAG (“SAAG Share(s)”) together with up to 1,040,109,801 free detachable warrants (“Warrant(s)”) on the basis of one (1) Warrant for every five (5) Rights Shares subscribed (“Proposed Rights Issue”);

See Announcement.pdf, ICPS PTC.pdf, Warrants PTC.pdf

Now what's more incredible is that it was just on 3rd Dec 2007, when SAAG made the incredible baffling one for 10 stock split and rights issue. This exercise was completed on July 2008.

Let's go back to 2008.

Here's the incredible table showing how the number of shares in SAAG exploded back in 2008!

Source: SAAG CONSOLIDATED (M) BHD (“SAAG” OR THE “COMPANY”)

From some 61 million shares to a possible 1.827 BILLION shares!

Today, SAAG has some 1.9 Billion shares. Yeah, it increased from the countless share placement exercises.

The current proposal.



oO

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

After this exercise is completed, under the max scenario, SAAG will have an ASTONISHING 9.5 BILLION shares!

Holy moo moo cow!

Now this is what you call share reproduction!

Now let's compare what SAAG has done since.

Here's the compiled table. It's a SHOCKER!



I believe I need NO words for the above!

And ..... the receivables does NOT include 'Amount due from customers for contract work'.

That receivable amount is at a shocking 368.552 million!!!!!

Yeah.. isn't it clear why SAAG wants this capital exercise so badly?


ps:

Disclaimer
1. I am a nobody.
2. I am not responsible for anyone's investments.
3. I am not a sotong. :D
4. I am certainly not an independent investment advisor.
5. Since I am not an in dependant investment advisor, I cannot guarantee that you should lose money.
6. Most important, I find no motivation to talk about stock price movements. Yeah, I do not indulge in guessing what a stock price will or will not do. So please spare me all the chats that you think this stock will go down by so much or this stock will soar by so much.

6 comments:

tklaw said...

Market has been seen bullish recently. Investors are getting more optimistic so the company should not miss the golden opportunity for raising funds. Anyway, it doesn’t matter whether the promise can be delivered in future. : p

Moolah said...

Depending on the bull?

:P

Errr... err.... if SAAG is NOT a traded stock, would you want to buy a stake in the company based on its current business fundamentals? :D

tklaw said...

Much depending on the bull to raise funds especially for those companies performance below average. Traders won't care dividend so why need to worry about fundamental. Technical chart is more important for traders. :)

What more interesting is why the controlling shareholder willling to subscribe additional shares given the future performace would be full of uncertainty? Do you want to pump in more personal money if you were the controlling shareholder? Corporate world is ugl......

Loke said...

You talk too much. To prove us you are good sifu to follow, load the screenshot of the stocks you rokemen. Ini baru CAKAP SERUPA BIKIN!! Amacam?

eugene said...

I reckon we must be responsible with our own investment. you can read, follow, judge or whatever, in the end,nobody will make you invest if you choose not to.

thank you this site, i am here to learn, nothing more ,nothing less.

Moolah said...

eugene: thanks and welcome. :D