"Irrational exuberance," he said.Here is the continuing episode on Ban Joo based on published information. [P/S - I got no Ban Joo shares.]
Jun 30, 2006 - As at that date, it owed bankers almost $68 million.
Oct 2006 - Auditors expressed doubt about the company's ability to continue as a going concern.
Nov 5, 2006 - Company made announcement on the placement of shares at 2.5cts to secure $3.57mio cash injection. Share price then was 4cts.
Early Feb 2007 - Ban Joo announced an intention to buy into various private property-related companies via the issue of 109 million new shares. [Who were the intended sellers? Were these deals an issue to SGX giving the approval?]
Mar 27, 2007 - It announced that these purchases were off because certain commercial issues could not be resolved.
Jun 21, 2007 - Sivanithy's article in BT. Should the placement go through on Jun 25, 2007, will the difference of $30-odd million be considered an expense to shareholders and therefore the company? If it were to account for it, will the company sink?
Jun 22, 2007 - The counter closed at 24cts with about 30 mio shares transacted.
My view
Going concern is an issue with the company since last year.
Company promptly went and look for white knights for quick cash to keep company going. Company also tried to look for some new businesses to be injected into the company. These deals went belly up in Mar 2007.
Jun 30, 2006 - As at that date, it owed bankers almost $68 million.
Oct 2006 - Auditors expressed doubt about the company's ability to continue as a going concern.
Nov 5, 2006 - Company made announcement on the placement of shares at 2.5cts to secure $3.57mio cash injection. Share price then was 4cts.
Early Feb 2007 - Ban Joo announced an intention to buy into various private property-related companies via the issue of 109 million new shares. [Who were the intended sellers? Were these deals an issue to SGX giving the approval?]
Mar 27, 2007 - It announced that these purchases were off because certain commercial issues could not be resolved.
Jun 21, 2007 - Sivanithy's article in BT. Should the placement go through on Jun 25, 2007, will the difference of $30-odd million be considered an expense to shareholders and therefore the company? If it were to account for it, will the company sink?
Jun 22, 2007 - The counter closed at 24cts with about 30 mio shares transacted.
My view
Going concern is an issue with the company since last year.
Company promptly went and look for white knights for quick cash to keep company going. Company also tried to look for some new businesses to be injected into the company. These deals went belly up in Mar 2007.
The company is in a precarious position.
- Be damn if it gets the $3.57mio and;
- be damn if the shareholders reject the proposal on Monday.
If it gets the $3.57mio, how long will $3.57mio last with the possibility of $30mio "expense" to be charged to its P&L with no new business deals?
If it didnt get the $3.57mio, how to solve going concern issue with no money and no new business?
Thus I wish to know how one justify the last traded share price of 24cts.
Is it irrational exuberance that has got into all our heads?
Buyers beware!!!
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