StockTube first blogged about Vincent Tan’s stocks in Oct 2006 when Berjaya Capital Berhad was still a listed company. Then Berjaya Corporation Berhad (KLSE: BJCORP, stock-code 3395), formerly known as Berjaya Group Berhad together with its Irredeemable Convertible Loan Stocks, ICULS (2005/2015) BJCORP-LC (stock-code 3395LC) triggered FinanceTwitter and MACD “Buy” signal.

It wasn’t about a year later that Berjaya Corp finally made its move in Oct 2007. The attraction was not the Berjaya Corp shares but its ICULS which was traded about $0.20 a share most of 2007. It was traded below $0.08 a share before 2007 mind you. Why is this fella difference from other warrants? It’s because its expiration is at mind-boggling 2015 – huge time-value at your advantage. Essentially nobody would believe Vincent Tan will keep quiet and do nothing to push up his own shares.
In Oct 2007 FinanceTwitter blogged about the stock (Berjaya Corp) again; only this time the worm was out of the can, well sort of, with both Berjaya Corp and Silver Bird (KLSE: SILVER, stock-code 7136) caught the attention of investors and speculators. The undisputed king of “bonus and rights issue” had awakened. The game became so excited that FinanceTwitter wrote and asked you if you would like to make 100 percent profit trading stocks. At that particular moment Bejaya Corp was trading at RM1.09 while the ICULS was at RM0.55 a share. I would say the period was the climax for investors or speculators to accumulate.

Today with a few hours left before the 2008 New Year, Berjaya Corp ICULS stock (traded at highest RM1.00 a share today) has almost reach the target of 100 percent profit should you had bought into it on 12th Oct 2007. With the mother share of Berjaya Corp trading at only RM1.55 a share and assuming Vincent Tan needs to make 100 percent profit himself since his acquisitions via conversion of ICULS was at the price ranging from RM0.908 to RM1.00 per BJCORP shares in Oct 2007, it appears Berjaya Corp still has 50% upside. Hence it would not be too hard to imagine that the ICULS could have another RM0.50 a share gain, theoretically.

Not only that but it seems Vincent’s StemLife Berhad (KLSE: STEMLFE, stock-code 0137) has made very impressive window dressing for the last five trading days before the 2007 curtain comes to the end. So is it game over? Considering the Chinese Lunar Year is still a month away, the goodies could continue post-2008-New Year. But it’s never a bad idea to take some money off the table. Can you imagine the percentage of gains if you hold on to the ICULS from the previous restructuring exercise?

Other Articles That May Interest You …

• Would you like to make 100 percent Trading Stocks?
• Stocks Frying 101 with the Iron Chef Vincent Tan
• Silver Bird might be yelling Give-Me-5, High-5
• Will Vincent Tan Finally Moves His Stocks?

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December 31st, 2007 by financetwitter

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