• Saturday July 24, 2010
  
  hirotako acquires stake in PA Resources
  
  PETALING JAYA: Automotive components maker Hirotako Holdings Bhd has been allotted 24.41 million shares and 24.41 million warrants in PA Resources Bhd, an aluminium billet manufacturer via the latter’s rights issue exercise. Hirotako told Bursa Malaysia the company now had a 15% stake in PA Resources for a cash consideration of RM15.79mil

Ahh... an automotive parts maker stock. :D

Now this could be interesting. LOL!

Firstly, the stock chart.

GLEE!

Yet another hot stock. Wasssap! Surely I cannot be insinuating that perhaps one should grab as much as possible a stock that is clearly shooting for the moon! Can I? (ps: the cow did jump over the moon, no?) (ps: I did write on Jan 2010: The Next Hot Stuff? )

LOL! :P

Anyway... let's leave the above acquisition alone for the time being.

I am rather interested to know what's happening in Hirotako. Aren't you interested? Why is that stock so 'geng'? :P

HISTORICAL EARNINGS PERFORMANCE

RECENT QUARTERLY EARNINGS PERFORMANCE

Those are great numbers yes?

Let's have a look at how the stock is faring on the 5 year time frame.

Not bad eh? Comeon.. it's really beh pai mah. :D

The company has also a buyback program (not too aggressive.. LOL! ... yeah.. it's not like those company who use their share buybacks to send their stocks to Jupiter! :P ) Here's Hirotako's most recent quarterly earnings announced in May 2010. Quarterly rpt on consolidated results for the financial period ended 31/3/2010 (ps: I really have to take my hats off to Hirotako's management for what they are providing in their earnings notes. It was rather clear and precise. No messing around. :D )

Here's Hirotako's report on their share buyback posting in their quarterly earnings notes.

And what to they do with these treasury shares? Well they return it as dividends to its shareholders.

• On 8 February 2010, the Group announced a distribution of treasury shares as share dividends to the shareholders on the basis of two (2) treasury shares for every twenty-five (25) shares held on 2 March 2010.

And the company do give dividends too. For example, here's one announcement: First Interim Dividend

Ok.... so that's about a brief picture of what and how Hirotako is and I guess it's not a shocker that the stock is doing so well.

Now back to the issue....

Feb 2010: Quarterly rpt on consolidated results for the financial period ended 31/12/2009

Hirotako decided to plunge into the share market!!!!!!!!!!!!!!!! (MMM HAI GUA!)

ARGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGHHHHHHHHHHHH!

Ahem.. as you can see after Hirotako purchased some 3.364 million worth of 'quoted shares' by 31st December 2009, the value of the share at market value fell to 3.146.

Hmm... you know... or rather... do you know of some superstitious Aunties? :P

Well, if you do, you know, they say it's very not so good luck (ONG!) when the very first share you buy, you sit on paper losses. (yeah.. 'sway' is the four letter word they use. :P)

Anyway... the minority shareholder or the investing public would have absolutely ZERO idea what the 'quoted shares' are. (issue highlighted many times in this blog)

Three months later, May 2010: Quarterly rpt on consolidated results for the financial period ended 31/3/2010

to be continued.......

ps: I am not SOTONG and this is not a stock tip, so I clearly would NOT know if you could lose all your money if you decide irrationally to place a wager on this stock! :P