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

Thursday, June 25, 2015

ABRIC: So, what now?

I sold off ABRIC a couple of weeks ago at the price around RM0.52. Since then, the share price once shot up to 63 cents for a while and retraced back. 

Based on the latest quarter report, below are some of the key details. 

Cash balances: RM80 mil
Net cash: RM80 mil - RM6 mil = RM74 mil
No. of ordinary shares: 137.3 mil (Include warrants)

Thus, Net Cash per share will be around RM0.54

Total Equity: RM89.2 mil
Thus, Net Assets per share will be around RM0.65

The margin of safety to invest in the group is quite low now consider the share price is quite close to its net cash and net assets per share currently. 

The group still has some investment properties worth around RM15.8 mil on paper that able to generate some revenue and profit. 

Management mentioned they are currently evaluating various options to address its PN16 status. 

The group still has 6 months more to submit its regularisation plan. 

In case it fails, I am really interested to know how much it can give back to the shareholders. By right, it should be around 65 cents, but there should be some costs involved. 

It will be a good learning experience to me. 

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