Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

Thursday, March 12, 2015

ABRIC: The Emergence Force of Pui Cheng Wui

For those who invest or follow ABRIC Berhad all this while should note that there is a new substantial shareholder who emerged from nowhere and keep purchasing ABRIC shares from open market. 

It first started at 22-Jan with the news of Notice of Interest Substantial Shareholder being announced in Bursa website. 

Born in 1946. That means he is 69 years old currently and from the address, he stays near Mid Valley. Since that day, he also kept purchasing stocks from the open market and increased its ownership in the group. 

I marked down and summarized his activities on his open purchase in the table. 

So throughout these two three months, he increased its ownership from 9.57% to latest 16.77%. The units he bought every time frequently represented more than 50% of the daily volume of the respective stock. 

ABRIC also announced its quarter report result few weeks ago. 

The group still have around RM126 million at the end of Dec 2014. However, this does not include the dividend payment of RM42 million at Jan 2015. 

After dividend deduction, cash on hand = RM126.1 mil - 42.1 mil = RM84 mil 

Net cash on hand = RM84 mil - RM8.2 mil = RM75.7 mil

No. of outstanding shares = 140,523,553

Thus, net cash per share = RM0.537

Equity attributable to owners = RM120 mil 

After dividend payout, shareholders' equity - RM120 mil - RM42.1 mil = RM77.9 mil

Thus, NA per share = RM0.554

The share price is slightly lower than its net cash per share and net asset per share. It gave me around 25% of MOS based on my average price of RM0.425 if it reaches net cash per share of 54cents . 

But it's still a distance away to catch the founder of the group, Dato Ong who owning close to 42 millions shares. 

So, let's what this new substantial shareholder want to do after rounds of open purchasing. 

By the way, who sold the shares to him .. 

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