DEMCO on our minds at this critical time.
With the SET's relapse today and so DEMCO's stock price below 10, (at 9.80) we all wonder what to do next with our rights offering. Always concerned first and foremost for us members here, I have stated of late not to subscribe if the stock is in the single digit, but I wonder? That is, after reading this excellent posting by one of our senior members here:
"Regarding the 5% purchase of WEH the total is 1 billion Baht. As they paid a deposit of 200 million the balance is 800 million. If 65% of the new shares will be subscribed the purchase could go ahead. As 40% of shares hold are founders/managers they probably could buy 20% more. They announced that they will buy not less than their right, so maybe more. Anyway, this is all speculation at the moment, but might be possible. It was reported somewhere that 200 million deposit are financed by a bank loan".
This is an excellent way to put it and we are deeply grateful for this posting. It looks as if this favorite company can pull it off despite the market price lapse which is likely very temporary. My view is we should all subscribe and support the likely well legitimate though-out reason to buy the 5% as the company is determined to do -and convinced many of us is rightly so, including me.
Not sure why the SET dropped like it did today as other regional markets were not effected. With the Thai Baht trading at 30.83 as of 5 PM today it as well does not show any macro reasons for the SET's fall. In the "top ten most active" CPALL dropped the most, this one is in the limelight now due to their huge and expensive acquisition of MAKRO.
We will have to see what next but I am scratching my head thinking now and based on this excellent posting by our one of our member late today, my view is to just go ahead and subscribe as what DEMCO is proposing to do looks very solid and it would be a big shame if they can't pull it off evenwhile they diluted the shares outstanding now by going ahead with this come "hell or high water", as I sense they surely will.
Best Regards,
Paul A. Renaud.
www.thaistocks.com
