When we talk about this company, it's very much interesting because we cant find much info from it's own website. http://www.borneo-oil.com.my/ I just shares some ideas why BORNOIL this company are very much worth to look at.
And most of the people will think, BORNOIL must be deal with oil lah ! Their primary business involve in fast-food operations & franchising, property and related business, oil, gas and energy related businesses and other activities. Which have major 3 business.
BORNOIL have quite a lot story, ever
since last year, it's already highlighted by many people when the move
of HAP SENG brought 18.7% of their shares.Refer: http://www.sharetisfy.com/2014/10/bornoil-7036-borneo-oil-climbs-after.html.
For some detail on BORNOIL in dealing with GOLD mining business, can Refer: http://bonescythe.blogspot.my/2014/10/october-highlight-bornoil-gold-blast.html
I would say that, it's bright business and so far there are doing well.
HapSeng is a very strong company which I
don't need to explain much, they look good on BORNOIL, so I always put
BORNOIL as my monitor list as well. Now is chance to get some BORNOIL
for the reason below:
Lets looks at recent chart movement first:
The price seems press down so much when market bad, and recently push
up, its because they going to do right issue with free warrant !! And
it's going to be a very great deal, low risk and worth it. I explain
that later. Big fish won't let the price go too cheap because they also
want to take the rights and get free warrant !
Lets look at how their financial result :
Lets look at how their financial result :
Huge revenue increases and profit increase for the last quarter. It's very much contribute by the fast-food operations & franchising of Sugar Bun ! Sugar Bun is expanding fast into other countries which potentially become next KFC.
Lately they have become East Malaysia Franchisees holder of PEZZO pizza. It's expanded aggressively and received very good respond. We can see it from here: https://www.facebook.com/PezzoMY?fref=ts
and here:
http://www.thestar.com.my/Business/Business-News/2015/04/06/Borneo-Oil-to-open-15-Pezzo-outlets-in-Sabah-and-Sarawak/?style=biz
So now, lets have some views on the recent Proposed right issue with free warrant that going to fix date on BORNOIL soon. This is how its work:
Right issue of 1 Get 6 Right to buy 10sen, free 1 WC if subscribe 2 Right. .
6 : 1 at 10sen (1WC : 2RI)
Put it simple mean, Buy 1000 unit can get 6000 right to buy at 10sen and will free 3000 Warrant C.
For Example:
1. You buy one share of Bornoil today at, say, 60 cents.
2. Once you own one share of Bornoil, you get the right to subscribe to 6 rights issue shares at 10 cents per share at the rights issue date
3. You then spend another 60 cents to buy 6 rights issue shares. So You spend in total RM 1.20
4. After the rights issue date, you now have 7 shares. RM 1.20 divide by 7 shares equals 17 cents per share, you don't lose anything. So far, so good.
5. Now, here's where it gets interesting. BY SUBSCRIBING TO THOSE 6 SHARES, YOU GET 3 FREE WARRANT C's.
These warrant C's then gives you the right to buy Bornoil stock at 10 cents per share "regardless" of how high the ex rights issue market price in (in this case, 17 cents).
Which mean this warrant c are most likely trading at around 0.05-0.10 cent. If you have 3000 unit = RM 150-RM300.
I am very sure BORNOIL after ex right issues, the price to go around 0.20 should be easy. Which mean warrant might fried even higher. Both win.
(credit to explanation from goldbugyapfui888)
As a conclusion:
1. BORNOIL have bright futures.
2. BORNOIL business are growing fast.
3. BORNOIL have very strong shareholder behind, HAP SENG.
4. BORNOIL digging gold, which if gold price meletup, it will benefit the most.
5. If Ringgit continue drop, it will not impact on its business yet benefit the gold price.
6. Downside of its price are very limited due to right issues on going.
7. The right issues that going to announce are very worth to subscribe.
8. It's suitable for mid term investment.
9. You not going to lose if buy below 0.70.
10. Still not many people understand and know this right issue great deal.
11. Price already moving up slowly, show that those smart guys already collecting cheap to get the rights !
My First Target Price 0.65, Second Target 0.70, Third 0.78.
BORNOIL (7036) - Fast Growing Fast Food and Great Right Issue Deal
http://bursalogicanalysis.blogspot.my/search/label/BORNOIL
