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Dayang: my proposal for the Board


Koon Yew Yin 9 Nov 2019

The company’s right issues announcement on 7 Nov 2019 is like a joke. Every shareholder can buy 1 new share at 92 sen if he owns 10 shares. Nevertheless, it encourages more buyers for the shares. As a result, the price continues to go higher and higher. 

Ever since the company made the right issues announcement on the 17 May 2019, almost all the shareholders and outside investors are so confused and worried about its effect on the share price. 

Why Mr Ooi sells Dayang?

The famous chartist and fund manager, Mr Ooi Teik Bee sold all his and his client’s shares at Rm 1.50 and he circulated his advice to all his hundreds of subscribers to sell their holdings. Mr Ooi sold at Rm 1.50 because he expected to buy back at cheaper prices. That is why Mr Ooi’s weekly circular recommendations are Carinim and Uzma and not Dayang. To counter the bad publicity, I have written and published more than 10 articles to promote Dayang. You can read them on i3investor.com or on my blog: koonyewyin.com. Fortunately, despite of the bad publicity the price has been going up higher and higher.  

The normal way to raise funds is to sell right issues with free convertible warrants as sweetener. 

I would like the Board of Directors to read the link below about the importance of the company’s share price. They must bear in mind that when an investor buys any stock, he expects to gain from dividend yield and the increase of share price. Dayang like most of the locally listed companies do not give out dividend because the companies always need more money for business expansion. 

In the case of Dayang, the Board must seriously consider various ways to improve its share price. 

My proposal: 

I wish to propose that the company gives out 1 free convertible warrant for every 4 shares held by shareholders. The conversion price will be fixed at the 5 day average price prior the X date for buying the shares with the entitlement. The life of the warrant is 5 years. 

Giving out free convertible warrants is like giving out cash Ang Pow because the warrants can be sold readily for cash. As a result, Dayang’s share price will go up immediately after the announcement and all the shareholders will gain. The company will also gain huge amount of money when the warrants are converted, and it will also gain when it can sell the placement shares at a much higher price.    

I suggest Dayang’s Directors click the link below to know about the importance of share price.    

https://www.investopedia.com/investing/why-do-companies-care-about-their-stock-prices/

If Dayang’s Directors want to know more about me, they can click the link below.  

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