Tuesday, July 28, 2009

RCE Capital's Private Placement

You could not ask to write a much better script. :)

Last night the Edge Financial Daily uploaded this.

  • RCECap fixes placement price
    Written by The Edge Financial Daily
    Monday, 27 July 2009 22:26

    KUALA LUMPUR: RCE CAPITAL BHD has fixed the issue price for its private placement of 71.09 million shares of 10 sen each at 55.03sen per share.

    In a statement today, RCE Capital said the price was a discount of 10% to the five-day weighted average market price from July 20 to 24 of 61.15 sen per share.

    It said the private placement was expected to be completed by mid-August.

Private placement fixed at 55.03 sen.

Hmm.... my a private placement. Now this is a good reason to buy up the share.

And this morning, the Edge Financial MADE another posting.

  • RCE Capital up in very active trade
    Written by Joseph Chin
    Tuesday, 28 July 2009 09:49

    Shares of RCE CAPITAL BHD was the most active counter in early trade on July 28 in the absence of corporate news except that it had fixed the placement shares at 55.03 sen each.

    At 9.44am, it was up three sen to 65.5 sen with 7.31 million shares done.

    The company announced on July 27 the private placement of 71.09 million new shares of 10 sen each to investors was fixed at 55.03 sen.

    RCE Capital said the issue price was arrived at after applying a discount of 10% based on the 5-day weighted average market price of RCE shares from July 20 to 24 of 61.15 per share.

    With the price-fixing of the placement Shares, the company said it expected the private placement to be completed by mid-August.

Hmm.... private placement. Benefiting those placement buyers. Let's get active yo!

And then K&N Kenanga decides to issue a buy report on RCE.

Its buy target 70 sen. LOL!

Talk about sweet, sweet timing.

Life is simply grand.

Let's push up the shares so these private placement buyers could get rich fast!



random said...

mind telling me how to get these private placement lots?


Moolah said...

It's called 'private' for a reason.

Some would be more cynical and insist that it should be called Pirate Placement.


evelyn said...

hi moolah, i am a regular visitor to your blog and find the info posted informative and interesting. I am really new to stock trading and would like to know what will likely to happen to this counter prior to the completion and completion thereafter of the private placement. thanks and regards. eve

Moolah said...

You have this company selling extra shares to an un-named party at a discount (ie 55.03 sen per share) which works to 10% of the so-called average traded price of 61.15 sen. And in this instance, the amount of shares sold is 10%.

The market terminology is called 'private placement'.

Some calls it 'privileged placement' because not anyone are offered this so-called special chance.

Some calls it 'pirate placement' because other shareholders will see their earnings dilute by 10% from such an exercise. For example, say a cake was planned to shared by 10 ppl. One Joe showed up. You know have 11 ppl sharing that one piece of cake. So the original 10 have to eat less to accommodate Joe.

And of course I did not answer your question.


I be a liar if I told you I know exactly if a share would go up or down.

TK said...

priviledged private pirate vs deprived public victims

random said...

hi eve

u should be very very very careful when buying stocks especially when you're a newbie..

capital preservation is the most important thing when you're young

if you can't understand a stock, it's better to avoid it and just stick to simpler stocks

hhc1977 said...


There will be no deal if there is no seller for this private placement.

We have to look at the deal from both perspective as prospective buyer and seller. What will u do before the private placement if u were the seller?

The answer is quite obvious if u care to look at its price volume chart for last 3 months.

BTW, check around FA bugger for their pick. I wont be surprised if RCE is in their list. Check forum as well.

Isnt all this action obvious?

Moolah said...

Sifu Random!



wahlaoeh! now formula?


What is obvious is I do not know what is FA burger.

However... I do know of the song DoReMe. IINM there is a fa somewhere....


random said...

OI don't call me sifu..

i am just speaking from experience :)

Moolah said...

Experience + lots of money can randomly cause havoc!

* whistle *

evelyn said...

thanks moolah for the explanation about private/privileged/pirate placement. And thanks random for your advice.