The Singapore stock market has gone spectacularly over the past few months. It would be foolhardy to say otherwise. Apparently, the sense of optimism is now so strong that some speculators are willing to pay a premium of 83% for hope.
Enporis Greenz Limited was formally known as Seksun Corporation Limited, which was principally involved in the manufacture of high-precision metal components and contract manufacturing for the electronics industry, with operations in Singapore, Malaysia, Indonesia, China and the USA. In October 2007, the Company announced the sale of substantially the whole of its assets and business undertakings to Supernova Holdings (Singapore) Pte. Ltd. Following the completion of the sale in February 2008, the Company remained listed on the SGX Mainboard and was renamed as Enporis Greenz Limited. Currently, it is a shell company with no operating business to speak of. The Company continues to explore and assess various investment options to seek viable opportunities in other areas of business.
According to the Listing Manual, the Singapore Exchange Securities Trading Limited (SGX-ST) may remove the Company from the Official List if it is unable to acquire a new business satisfying the requirements for a new listing within 12 months from the time it becomes a cash company. On 30th Jan 2009, the Company managed to obtain an extension of time of 6 months from 31 January 2009 to continue their search of a new business. In the event the Company does not obtain ETL or proceed with the RTO, the SGX-ST will not grant further extension and will proceed to delist the Company.
The time to the deadline of 31st July 2009 is less than 2 months away. It is highly unlikely that Enporis Greenz will be able to consummate a new business, considering the amount of paperwork and logistics to be done. The writing is clearly on the wall as one of the management staff, who is also a substantial shareholder, has steadily pared down his stake from 24.42% to 20.46% in the past few weeks.
In the event that the company is delisted, any cash remaining will be distributed to the shareholders. As of the last financial report, the maximum amount of cash backing per share is approximately $0.03. Enporis Greenz last traded at $0.055 on Friday 5th June, which represents a premium of 83%. In short, speculators are paying 2.5 cents more to punt that the company will successfully find a new business before end July.
Unfortunately, the margin facilities of financial institutions do not allow the shorting of Enporis Greenz's shares. A potential return of 45% in less than 2 months is eye-popping no matter which view one takes.
Enporis Greenz Limited was formally known as Seksun Corporation Limited, which was principally involved in the manufacture of high-precision metal components and contract manufacturing for the electronics industry, with operations in Singapore, Malaysia, Indonesia, China and the USA. In October 2007, the Company announced the sale of substantially the whole of its assets and business undertakings to Supernova Holdings (Singapore) Pte. Ltd. Following the completion of the sale in February 2008, the Company remained listed on the SGX Mainboard and was renamed as Enporis Greenz Limited. Currently, it is a shell company with no operating business to speak of. The Company continues to explore and assess various investment options to seek viable opportunities in other areas of business.
According to the Listing Manual, the Singapore Exchange Securities Trading Limited (SGX-ST) may remove the Company from the Official List if it is unable to acquire a new business satisfying the requirements for a new listing within 12 months from the time it becomes a cash company. On 30th Jan 2009, the Company managed to obtain an extension of time of 6 months from 31 January 2009 to continue their search of a new business. In the event the Company does not obtain ETL or proceed with the RTO, the SGX-ST will not grant further extension and will proceed to delist the Company.
The time to the deadline of 31st July 2009 is less than 2 months away. It is highly unlikely that Enporis Greenz will be able to consummate a new business, considering the amount of paperwork and logistics to be done. The writing is clearly on the wall as one of the management staff, who is also a substantial shareholder, has steadily pared down his stake from 24.42% to 20.46% in the past few weeks.
In the event that the company is delisted, any cash remaining will be distributed to the shareholders. As of the last financial report, the maximum amount of cash backing per share is approximately $0.03. Enporis Greenz last traded at $0.055 on Friday 5th June, which represents a premium of 83%. In short, speculators are paying 2.5 cents more to punt that the company will successfully find a new business before end July.
Unfortunately, the margin facilities of financial institutions do not allow the shorting of Enporis Greenz's shares. A potential return of 45% in less than 2 months is eye-popping no matter which view one takes.
1 comment:
Had a chat with my boss today, and he commented that the more analysts who opine that we are out of the woods, the more he is convinced otherwise.
Delusion is often easier on the heart and mind...
Perhaps people should just pay S$1 for hope. Even if the S$1 hope bursts, part of the money could be going towards charitable community causes. 83% is too much a premium to pay for hope.
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