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This is the next to move....
Why a BUY call?
1. Products used in tyres. Prices suppressed due to low commodity rubber price. Due to Lockdown in many countries. Will come back when economy turnaround.
2. Products also used in condoms and gloves. Defensive industry.
3. Big names shareholder in it such as China SOE and some big funds eg Credence.
4. Discounted price now. Book price 50 cents.
5. Rights issue. Ex rights price $0.305. Mgt needs to make the price of mother shares attractive to incentivise shareholder to subscribe
6. News coming probably sub shareholder subscribing the rights, so far only main shareholder subscribing.
7. High barriers to entry. Rubber tree has Long gestation period. Demand will eventually catch up supplies.
BUY before it runs. But need to hold for a while.
My POV. Don scold me if lose money.
1. Products used in tyres. Prices suppressed due to low commodity rubber price. Due to Lockdown in many countries. Will come back when economy turnaround.
2. Products also used in condoms and gloves. Defensive industry.
3. Big names shareholder in it such as China SOE and some big funds eg Credence.
4. Discounted price now. Book price 50 cents.
5. Rights issue. Ex rights price $0.305. Mgt needs to make the price of mother shares attractive to incentivise shareholder to subscribe
6. News coming probably sub shareholder subscribing the rights, so far only main shareholder subscribing.
7. High barriers to entry. Rubber tree has Long gestation period. Demand will eventually catch up supplies.
BUY before it runs. But need to hold for a while.
My POV. Don scold me if lose money.
No movement...
Good value to Invest now cheap. Once news breakout. This counter will fly like no tomorrow.
Hey please do not post fake information Sgvale - read this from their website - https://www.halcyonagri.com/about-us/at-a-glance/
Sgvale ( Date: 13-Jul-2020 16:35) Posted:
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This rubber is for tyres. Not gloves or condom
tt1010880 ( Date: 13-Jul-2020 16:34) Posted:
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Quite logical, Top Gloves and gloves companies need raw material this should be able to profit from their manufacturing requirements, any target price to enter?
francisd ( Date: 13-Jul-2020 16:14) Posted:
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Had gone over 45 cents a month ago and came back down... mostly likely to go up and ride on the glove makes like Top Glove and others... latex is used in the production of gloves which comes from rubber.. All the best guys.
anyone buying this?
No movement and support..... But its a good buy now.. Whack it
this seems slow today.. volume but tiny movement. any thoughts on what may trigger the next breakout?
Looks like a decent breakout, might break 37c soon.
SmallSmall ( Date: 06-Jul-2020 09:38) Posted:
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This counter can' t be that bad I guess. It is also in rubber production. Cannot see why it would not perform. The rights issue has set a bottom price of $0.22. Think this is pretty unfair to a company nthat5 has a NAV of $0.4744.
Halcyon Agri plans 1-for-2 rights issue to raise S$174.7m
MON, JUN 22, 2020 - 2:03 PMNATURAL rubber supplier Halcyon Agri Corp on Monday proposed a renounceable non-underwritten rights issue of up to 797.5 million new shares at 22 Singapore cents apiece.
The mainboard-listed firm plans to offer eligible shareholders one rights share for every two existing ordinary shares they hold.
The issue price of 22 cents for each rights share represents a 36.2 per cent discount to the last transacted price of 34.5 cents per share for trades done on June 19.
It is also a 35.7 per cent discount to the volume-weighted average price of 34.2 cents traded over the last five consecutive market days including June 19, and a discount of about 27.4 per cent to the theoretical ex-rights price of 30.3 cents calculated based on the last transacted price on June 19.
As at 1.14pm on Monday, the counter had fallen 17.4 per cent or six cents to trade at 28.5 cents.
Halcyon Agri said the issue price and the discounts were determined after taking into account precedent transactions, the transaction size, and discussions with DBS Bank, the appointed manager for the rights issue.
Net proceeds of about S$174.7 million - assuming the rights issue is fully subscribed - will be used to fund operating cash flows and the group' s other fixed commitments, such as capital expenditures and the servicing of term debts.
The proposed rights issue is meant to strengthen the group' s capital structure, in view of the recent restructuring of a loan and in line with the group' s intention to deleverage its balance sheet, while providing shareholders an opportunity to maintain their equity participation in the company.
During the second quarter ending June 30, 2020, the company had completed the renegotiation of the terms of a loan it had granted to investment services firm Fimave SA back in 2017, extending the repayment date by another five years and revising the interest rate to 10 per cent per annum, from 6.5 per cent previously.
Fimave had obtained the loan when it acquired Halcyon Agri' s 35 per cent stake in agro-industrial group SIAT.
The carrying value of US$52.3 million for the loan receivable under the Fimave loan was classified as current assets as at Dec 31, 2019. But with the loan now restructured, such receivables will be reclassified as non-current assets in the second quarter' s balance sheet, and this may have an impact on the group' s net current asset position as at June 30, 2020, Halcyon Agri noted.
" The rights issue will enhance the group' s financial position by adding liquidity, augmenting our capital base, thus reducing the group' s overall gearing," it added.
" This will enhance the group' s ability to formulate, strategise and execute its business plans as the market enters the cyclical recovery cycle, which is expected to drive both volumes and market prices. It will also provide the group with greater financial capacity and flexibility to capitalise on any investment opportunities in a timely manner."
The company has not received any undertaking from its substantial shareholders to take up their respective rights shares, as at June 22.
However, major shareholder Sinochem International (Overseas) (SIO) will subscribe for its pro rata entitlement to the rights shares, if the requisite approvals, conditions, clearances, filings and rulings under China' s laws and regulations are obtained.
SIO has a 54.99 per cent stake in Halcyon Agri as at Monday, and it is wholly owned by Chinese state-owned enterprise Sinochem International Corp.
Halcyon Agri intends to rely on its share issue mandate to allot and issue the rights shares. It will seek shareholders' approval for this general mandate at the upcoming annual general meeting on June 26.
If approved, the general mandate will authorise, among other things, the directors to allot and issue shares - whether by way of rights, bonus or otherwise - of up to 50 per cent of the total number of issued shares as at June 26.
The company will apply to the Singapore Exchange to seek its in-principle approval to list and quote the rights shares on the bourse.
https://www.businesstimes.com.sg/companies-markets/halcyon-agri-plans-1-for-2-rights-issue-to-raise-s1747m
https://www.businesstimes.com.sg/companies-markets/halcyon-agri-plans-1-for-2-rights-issue-to-raise-s1747m
already warned that this one has no gloves
contras die for sure
will be back to 36 by those contra cut loss soon
contras die for sure
will be back to 36 by those contra cut loss soon
How to chiong. Its rubber profit margin thin
johnng ( Date: 29-May-2020 21:10) Posted:
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CHIONG ARH MONDAY!!
This one be careful
no gloves at all
just rubber and loss making
not a good choice
must select gloves
no gloves at all
just rubber and loss making
not a good choice
must select gloves
Is there other rubber companies?
ferarri79 ( Date: 29-May-2020 14:40) Posted:
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much better options out there