Mr Koon Yew Yin blogged about Xingquan. Cash about RM3/share, EPS was 42sen/share for FY15, with PE multiple less than 2x.
If the share price does not reflect its true value, at current share price of 60sen/share, why not the major shareholder privatise the company?
If the major shareholder offers to privatise the company at RM2/share, not only he does not have to fork out money to take the company private, yet he actually earns RM1/share plus the remaining ownership of the company for free.
Is there such a big toad jumping on the street?
Added on 1 Jan 2016
Would you invest in a company that carries net cash of RM934m as of end September 2015 still needs rights issue to raise RM50.7m to fund RM99.2m capex?