Punters really brave.
This stock SAAG is dying, How I wish Sapura Kencana will bought over SAAG.
SAAG active as punters place bets after share plunge
Business & Markets 2012
Written by Cindy Yeap of theedgemalaysia.com
Tuesday, 16 October 2012 15:37
KUALA LUMPUR (Oct 16): Shares of SAAG CONSOLIDATED (M) BHD [] was actively traded on Tuesday as punters bet on some upside potential after it plummeted 70% on Monday after the company said it is suspending payments to creditor pending a meeting with them.
“The loan in default is RM699 million, four times its shareholder equity of RM166 million... but punters see an opportunity with SAAG’s net asset per share at eight sen compared with yesterday’s (Monday) close of 1.5 sen,” one remisier said.
“I dare not [buy] but who knows? There are people who think SAAG can restructure the loan or perhaps find a way to turn around. Perhaps SAAG could issue shares to the banks to pay part of their debt. That’s not impossible,” he added.
At 3.38pm, SAAG was up half a sen to two sen with over 34.2 million shares done — the day’s third most active stock.
In a statement last Friday, SAAG said the group is suspending both principal and interest payments to creditors pending its meeting with creditors.
“Any decision on the course of action to liquidate or restructure the group will depend on the decision following the meeting with the group’s loan creditors namely Arab Malaysian Bank Bhd, Export-Import Bank of Malaysia Bhd and Idaman Capital Bhd (CLO Holders) and meetings to be held with MALAYAN BANKING BHD [] and State Bank of India,” SAAG’s statement read.
For the first half ended June 30, 2012, SAAG made a RM37.97 million net loss, bigger than the RM21.95 million net loss booked in the previous year’s corresponding period. Its unaudited net asset per share stood at eight sen compared with nine sen the year before.
SAAG shares plunged as much as 80% or four sen to one sen on Monday before ending the day at 3.5 sen or down 70% with over 185.1 million shares done.