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Loyz Energy - Brewing ?
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TigTig
Master |
07-Oct-2017 17:36
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Quite agree.    If the price drifts lower and lower, the rights can be endangered.      Don' t expect much news until the big meeting they set up.   
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TigTig
Master |
07-Oct-2017 17:25
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Hehe, I got this wrong, it' s 300,000 barrels.    The base revenue (before deduction of other overheads) is the oil price less US 12 I think.  So if oil price is 50, their revenue would be 11.4 million or 15 million SGD.
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TigTig
Master |
07-Oct-2017 17:23
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It' s staff incentive.  Need to check further how they play this game.    I think bottom line is CEO got the 10 million shares and he would want to push price up.    The meeting will be pony show for him, but be careful of empty promises. 
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Volmax
Elite |
07-Oct-2017 17:19
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Can any bro enlighten me what is " Vesting of share awards" ?
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dav781
Senior |
07-Oct-2017 16:39
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I do not think there will be many takers who would subscribe  to the rights at 1.0 cent share price as well. Why throw in more money to Loyz? Even if there is really dilution, the impact is minimal at 1.0 cent. For the rights to be successful, this share has to be at least 1.3 cents and above.
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dav781
Senior |
07-Oct-2017 16:34
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Warrant exercise price is 1.5 cents. Warrant is not worth a lot. Furthermore, it is 4 rights to 1 warrant. I agree that some SSH or big supporter of Loyz might buy at 0.9 cent but definitely not a lot. As a normal shareholder, at 0.9 cent, I would definitely not subscribe and I would not lose out to dilution at all.
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bernardc
Elite |
07-Oct-2017 16:07
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people will still subscribe at .009.... free waarnts may worth something..
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Volmax
Elite |
07-Oct-2017 15:48
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So shareholders who do not wanna see further dilution can just sell down to 0.9c and Loyz will cancel the rights issue? LOL ![]()   |
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dav781
Senior |
07-Oct-2017 15:34
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There will not be any rights/new shares if share price drops to 0.9 cent.
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TigTig
Master |
07-Oct-2017 12:10
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I mean they produce 300 million barrels.    The reserve figures look pretty good I think, correct me if I am wrong.  so I thought the best way is to pull more oil from the ground if they want revenue. 
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TigTig
Master |
07-Oct-2017 12:02
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From what I can see, please correct me if I am wrong, this Company has a little bit of oil which gives them revenue.  They can produce about 300 barrels of oil per year, which has been the case from past two years (from annual report), so the revenue depends on the price per barrel, which could be $40 or $50 per barrel, it depends on the market.    They said that they would focus on Thailand to raise the oil production, but also caution that they want to conserve the oil reserves if the oil price is not good.  So far so good.    The downside of this strategy is that they need to pay back US30 million to the owner of the oilfield by installments, and second they need to pay about US30 million back to OCBC for the loan they got to take over the oilfield.  These debts are still outstanding.    They can manage this somehow by giving Loyz shares to the owner when they run out of cash.    We expect that this company will constantly be bugged by cash needs.  Next come chapter 2.      Suddenly, the company decides to do something different and partner with another company to do things like commodities trading, blah, blah blah, investment, etc.      The rights issue is important to them now.  without this seed money, their plan to do this new thingy will be crippled.    What will happen to the shares issued to the JV partner? we also need to be careful with the NAV figures, as there has been so many new share issuance, it has been lowered when you add in the new shares issued to the denominator to calculate NAV.    I think the company is now depending on persuading shareholders at the change name meeting to back their plans.    Between now and then, price could just drift towards the lower end.    |
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Volmax
Elite |
07-Oct-2017 10:41
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Instead of creating value, they are destroying shareholders' value. Those intend to subscribe to the rights but have no holding power may panic sell when the 2 billion shares come to the market and buyers starts shrinking.
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polarinda
Master |
07-Oct-2017 01:45
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why is the share price dropping? is it going bust? | ||||
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vivacious
Supreme |
06-Oct-2017 21:57
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cancel the rights and shr price rocket lah. Best.
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dav781
Senior |
06-Oct-2017 21:56
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Hello, they are pricing their rights at 0.9 cents. Very fee will subscribe if share price hits 0.9 cent. They might as well cancel the rights issue.
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dav781
Senior |
06-Oct-2017 21:52
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If share price drops to 0.9 cent, hardly anyone   will subscribe to the rights.  The company can still try to offer rights at 0.9 cent (when share price is 0.9 cent) and some idiots/big supporters might subscribe for it, but there will NOT be any dilutive effect as every new share issued is backed by 0.9 cent cash. if share price drops to 0.8 cent, just buy from the market at a cheaper price than the rights.  
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TigTig
Master |
06-Oct-2017 20:29
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So if one buys at 0.009 and take the rights, effectively he is paying 1.8 cents per share.    If you buy at higher price, it just means you pay more per share.    It' s still below the NAV, but the real issue is will money be made from the investment? Seriously, I think this company do need our attention.      Uppermost in my mind is the existing business, how is it going?    The oil reserves are going to give how much profit to the co, say at US 50?      Are they running out, or have many years of life?      I don' t have a good feel at all, need to do some more checks.    The oil is the backstop.      I don' t know about the success of the new business, it could end up the garden path looking at Tarzan.    |
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ifallgoeswell
Senior |
06-Oct-2017 20:26
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Mr. ceo can lead by example and subscribe since he has 10mil new shares to play with now. Will be interesting to see if other big shareholders actually support this during egm and subscribe
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ifallgoeswell
Senior |
06-Oct-2017 20:15
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Yes sir 1 for 1
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gravity8888
Supreme |
06-Oct-2017 20:15
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Below 1 on Monday.. If go below the rights.. Then bye bye lo | ||||
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