Tuesday, June 07, 2011

SAAG Private Placement Priced At 10 Sen!

This is how SAAG has been trading the past one year.

It's not too happening yes?

And its earnings is not too happening either.

Posted on 28 Feb 2011: SAAG's Earnings

Posted recently on May: Quick Look At SAAG's Earnings

And the company said itself had this interview on Star Biz: Turnaround unlikely for SAAG this year

  • ... SAAG started making losses in its financial year ended Dec 31, 2009 (FY09) as revenue fell due to a loss of revenue from its workover rig services operation as well as provisions made for doubtful debts and bad debts. For FY10, the company saw revenue falling by 31% to RM110.6mil while it made a net loss of RM35.7mil compared with a net loss of RM9.5mil in 2009.

    SAAG, which operates in a capital-intensive industry, posted a negative cash and cash equivalent for FY10 at RM7.5mil.


    SAAG has also undertaken a private placement as of April which will see it raising some RM19.7mil from the issuance of 197.5 million new shares to address its immediate working capital requirements.

Today SAAG announced the pricing details of the said private placement... SAAG fixes placement share price at 10 sen

10 sen!

Oh my!

Now these buyers of these placement shares are extremely generous since SAAG closed today at 7.5 sen!


I wonder....


K C said...

my my my, what is the ordinary business of saag of turnover of 13 m with a loss of 11 m, and a debt of 700+ m? My only impression of what saag is doing is in its speculation of its won shares. What was saag's share price in 1993 or the second board euphoria in 1996, how many tens of ringgit per share? Sorry lah, too lazy to read its annual reports. Why would private investors want to carry on with accepting the private placement at 10 sen?