Jaya - buy!

LIM & TAN SECURITIES:
^ The takeover offer for Jaya at a substantial
discount to market: 48 cents vs Friday’s close
of 66 cents, helps explain the recent “abrupt”
weakness of the stock, dropping 8.4% from 71.5
cents on Jan 27th to 65.5 cents last Thursday.
^  Affinity Group, an Asian private equity group, and
Jaya’s CEO Chan Mun Lye would have realized
substantial losses with their exit.
^  While the offer price will likely disappoint, we
believe the latest development (as in the
discounted offer) is positive for Jaya.

Reasons:
a. it has long been clear Jaya, under the former management, was over-leveraged; and Affinity’s exit suggests they were in no position to inject substantial fresh funds, via rights issue for instance;
b. entry of Deutsche Bank (taking a 21% stake in Jaya), Linden, a 10-year-old hedged fund managing US$1 bln (19%) is therefore positive. There are two other partners in the consortium, which are younger and smaller hedge fund setups.
c. the offerors do not intend to delist Jaya.

^ Given Jaya’s NAV of 66.89 cents per share as at end Dec ’10, we would BUY, especially should the stock should, in a knee-jerk reaction, fall close to the offer price. 
 

down 2 cents to 53 cents. A good buy at this price?

note that the stock is moving up today : + 2 cents to 53 cents, tho that is where it was since the last posting below LOL

fundamentally an undervalued stock, which has been dragged down by the general offer at a ridiculous price - ridiculous but the Offeror was just going thru the motion.  

What a joke! Shocked that there are even 1.63 million shares offered for sale at ridiculously below market price.

See announcement: As at 5.30 p.m. on 31 March 2011, the Offeror has received
valid acceptances amounting to 1,633,688 Offer Shares, representing approximately 0.21
per cent. of the total issued Shares1 as at 31 March 2011.

Can anyone explain why Jaya cheong 2 cents this mornign to 56 cents? How does the expiry of the takeover offer boost the stock market's interest? Or maybe it is truly a grossly undervalued stock?

Kevin Scully was a bull on Jaya and in a way he is being proven right as Jaya is doing 60 cents now.
[url=http://www.nextinsight.net
/story-archive-mainmenu-60/912-2011/3472-kevin-scully-hold-on-to-jaya-shares-as-they-are-undervaluedq]KEVIN SCULLY: 'Hold on to Jaya shares as they are undervalued....."[/url]