Life is tough, but the tough gets going. Market is always tough and not for sissy investor. As the year 2017 is coming to an end, it is a good time to reevaluate how far you had gone this year. Be it in your studies, your career, or your investment. It is always good to review on everything you had done, so that you will pick up on the mistake, rectify it, and tell yourself that you will never repeat it again.
In investment, sometimes, our mistake comes when we do not believe in our instinct when the stock price is still low and not moving with any momentum. But the problem is, when it is moving with momentum, it is either without you, or you are chasing it at a very high point which will in turn put your position in a high risk situation.
While some instinct leads to miserable outcome, it should not shy us away into trying to believe our instinct again. Some say, once bitten twice shy, twice bitten and dun wanna try.
But, I am sharing with you one instinct that is proven before with result, and I want to challenge you one more time to believe this will happen - Are you with me now ?
As you had know, 1 of the landmark case involving the take over of company in the KLSE had to be Denko Industrial Corporation. Denko got a take over offer from a Singaporean company at a price of RM 0.55.
Today, Denko is trading at a range of RM 1.40 as more corporate exercise took place including asset injection and private placement at a higher price as well.
If you had acted upon the time where this take over offer is announced, then you would had see your investment double up easily.
Now, Denko is a past tense. Nothing can be done if you had missed that opportunity. Denko is trading at RM 1.4x now, and no use to harp over things that had become something.
But, today I am giving you another chance of your lifetime - Once again.
This counter got a take over offer from it's major shareholder at a price of RM 0.785. This company is Yi-Lai Berhad (Yilai - 5048).
Talking about Yilai, I am telling you that this company is no mistress material at all, because they are tile manufacturer.
But, 3 years ago, this exciting company actually was bought in from it's major shareholder at a stunning price of RM 1.30. According to filing, Hampton Capital Ltd bought in 31.12% stake from the previous owner at RM 1.30 some where in May 2014. The director behind Hampton Capital are Aaron Tan Jian Hong and Wendy Kang.
Firstly, the person acting in concert had breached 33% and triggered mandatory general offer, where the offer is at RM 0.785. As you can see, this is an offer, and is not subject to any acceptance if any shareholder do not agree with the price. Yilai will be continue to be listed in the KLSE as long as the acceptance of offer is less than 75% (which is very likely to happen).
Secondly, the NTA of the company is actually sitting at RM 1.40, notwithstanding some plot of land that are not revalued.
Thirdly, Yilai is actually a company without any borrowings. That means, it's balance sheet can be stretched with new projects or new business.
Now Yilai is actually trading around the range of 80 cents, which is not far away from it's take over offer price of RM 0.785.
As you can see in many previous example of take over offer, I can tell you that there is high possibility that Yilai will be surging upwards very soon due to
1. Major shareholder bought in at RM 1.30
2. NTA is RM 1.40
Yilai will be properly valued at the price range of RM 1.50. Moreover with the x 2 take over factor, Yilai can be looking at RM 1.57 in the future.
Are you going to seize this chance with conviction ? I had done it, the ball is at your feet now.
See you above RM 1.00 in no time.