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Dayang: Points to ponder & can you advise me?


Koon Yew Yin 18 Nov 2019

1 The last day to buy with the right issues is 21 November. 

2 The price will drop aby 10 percent theoretically after 21 November because if you have 10 shares you will be given 1 right to buy 1 share at 92 sen 

3 The expected better 3 rd quarter profit announcement will automatically push the price higher

4 Soon after 21 November, for every 10 shares you hold, you will be given 1 OR of 1 ticket to buy 1 share at 92 sen.  

5 The OR of the tickets are marketable and you can buy the tickets which should be selling at a discount from the open market price otherwise investors will buy from the open market. 

My questions are 

1 Shall I sell some of my holdings to buy the OR or tickets?

2 Will the better 3 rd quarter result push the price much higher?

3 Is the rapid price rise from 90 sen due to the expected better 3rd quarter profit?  

4 Shall I buy some more shares now so that I will have more OR or tickets to buy Dayang at 92 sen? 

As I said before, even if the petroleum price dropped drastically by 50%, Petronas will continue to pump oil because Petronas has already paid for the oil rigs. The cost for just pumping is very small in comparison with the open market oil prices. Dayang, being the biggest oil rig maintenance contractor will be given more contracts. As a result, Dayang will have very good profit growth prospect which will push the price higher and higher.       

I am not so sure what is the best strategy. Can you advise me?        

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