SAAG Private Placement Priced At 10 Sen!

This is how SAAG has been trading the past one year.



It's not too happening yes?

And its earnings is not too happening either.

Posted on 28 Feb 2011: SAAG's Earnings

Posted recently on May: Quick Look At SAAG's Earnings



And the company said itself had this interview on Star Biz: Turnaround unlikely for SAAG this year

• ... SAAG started making losses in its financial year ended Dec 31, 2009 (FY09) as revenue fell due to a loss of revenue from its workover rig services operation as well as provisions made for doubtful debts and bad debts. For FY10, the company saw revenue falling by 31% to RM110.6mil while it made a net loss of RM35.7mil compared with a net loss of RM9.5mil in 2009.
  
  SAAG, which operates in a capital-intensive industry, posted a negative cash and cash equivalent for FY10 at RM7.5mil.
  
  ..............
  
  SAAG has also undertaken a private placement as of April which will see it raising some RM19.7mil from the issuance of 197.5 million new shares to address its immediate working capital requirements.
  

Today SAAG announced the pricing details of the said private placement... SAAG fixes placement share price at 10 sen

10 sen!

Oh my!

Now these buyers of these placement shares are extremely generous since SAAG closed today at 7.5 sen!

WOW!

I wonder....

Read more...

Quick Look At SAAG's Earnings

Posted on 28 Feb 2011: SAAG's Earnings



SAAG reported its earnings tonight.

Here's the updated numbers.



Some comments again.

1. The cash is diminishing again

2. The incredible debt increased again.

And as mentioned before, in its balance sheet, there's an entry called 'Amount due from customers for contract works'. That amount is now 279.267 million.

Read more...

SAAG's Earnings

SAAG reported its earnings. Here's the updated numbers.

Some comments.

1. The decline in sales revenue since fy 2007.

2. The diminishing cash.

3. The incredible increase in debt.

4. The increase in receivables.

Lastly, as mentioned before, in its balance sheet, there's an entry called 'Amount due from customers for contract works'. That amount is now 361.686 million. ( LOL! SAAG do business without collecting from its customers ah?)

Read more...

SAAG Wants Your Money Again!

SAAG Consolidated was on the news last Friday. It wants to raise funds via rights issue and exchangeable bonds. Yeah, it wants the investing public to put more money into their company again!

• SAAG Consolidated (M) Bhd will raise some RM416 million via several proposals such as a rights issue, exchangeable bonds and/or irredeemable convertible preference shares.
  
  SAAG told Bursa Malaysia yesterday that the funds raised will be used to increase shareholders’ funds, strengthen capital base, repay borrowings and for business expansion.

To be precise..

• (i) Proposed renounceable two (2) call rights issue of up to 5,200,549,005 new ordinary shares of RM0.10 each in SAAG (“Rights Share(s)”) on the basis of five (5) Rights Shares for every two (2) existing ordinary shares of RM0.10 each held in SAAG (“SAAG Share(s)”) together with up to 1,040,109,801 free detachable warrants (“Warrant(s)”) on the basis of one (1) Warrant for every five (5) Rights Shares subscribed (“Proposed Rights Issue”);

See Announcement.pdf, ICPS PTC.pdf, Warrants PTC.pdf

Now what's more incredible is that it was just on 3rd Dec 2007, when SAAG made the incredible baffling one for 10 stock split and rights issue. This exercise was completed on July 2008.

Let's go back to 2008.

Here's the incredible table showing how the number of shares in SAAG exploded back in 2008!

Source: SAAG CONSOLIDATED (M) BHD (“SAAG” OR THE “COMPANY”)

From some 61 million shares to a possible 1.827 BILLION shares!

Today, SAAG has some 1.9 Billion shares. Yeah, it increased from the countless share placement exercises.

The current proposal.

oO

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

After this exercise is completed, under the max scenario, SAAG will have an ASTONISHING 9.5 BILLION shares!

Holy moo moo cow!

Now this is what you call share reproduction!

Now let's compare what SAAG has done since.

Here's the compiled table. It's a SHOCKER!

I believe I need NO words for the above!

And ..... the receivables does NOT include 'Amount due from customers for contract work'.

That receivable amount is at a shocking 368.552 million!!!!!

Yeah.. isn't it clear why SAAG wants this capital exercise so badly?


ps:

Disclaimer
1. I am a nobody.
2. I am not responsible for anyone's investments.
3. I am not a sotong. :D
4. I am certainly not an independent investment advisor.
5. Since I am not an in dependant investment advisor, I cannot guarantee that you should lose money.
6. Most important, I find no motivation to talk about stock price movements. Yeah, I do not indulge in guessing what a stock price will or will not do. So please spare me all the chats that you think this stock will go down by so much or this stock will soar by so much.

Read more...

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????

Read more...