About SAAG

My dearest Moo Moo Cow,

Were you aware of the issues regarding SAAG placement issues? This issue was also highlighted on last weeks Edge Weekly: 9 Apr 2007: Corporate: Curious exercise at SAAG

The issues mentioned was highly 'interesting'.

• Nevertheless, the company's first tranche of private placement shares (the whole private placement is for up to 5.4 million shares) only managed to sell at RM1.45 each, which was an 8.8% discount to the average price in the five trading days ending Feb 5. Investors continued to place a low value on SAAG shares even after its year-end results were released. The second tranche, priced as at March 9, was issued at RM2 a share, or a 7.4% discount to market. This indicates that despite SAAG already trading at cheap valuations, investors were not willing to buy the stock without a discount. Since mid-March, however, SAAG stock has climbed steadily. It hit its year-high of RM4.46 last Wednesday, which is almost 11 times last year's earnings per share. And, curiously, investors seem more willing to pay a premium for the stock now that it is trading at higher valuations. The third tranche of placement shares were sold at RM3.10, or 5.8% over the average market price up to March 23. A week later, the fourth tranche's issue price was fixed at RM4, almost 10% above average prices up to March 30. The stock closed at RM4.18 last Friday, which means these investors are already sitting on a gain.

WOW!

The two issues mentioned.

1. Still, at the time they took up the placements, were these premium-paying investors acting irrationally?
2. Or did they know of developments in the offing that will add more value to the business and justify a higher share price?

How????