Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD
DMG & Partners Securities in a June 9 research report says: "OSIM announced that it has placed out $120 million convertible bonds to institutional investors at a conversion price of $2.03, a 25% premium over last closing price of $1.62.
"Potential dilution from full conversion of these CBs would be 8%. Net proceeds of $118.3 million will be earmarked for "potential value-added acquisitions." Market has not taken news of the CB well and its share price has dived 5%. Its TDR listing has been approved which will see it raise $76 million.
"With healthy net operating cashflows of $25 million per quarter, it appears that OSIM is building a war chest for another M&A. Target price of $1.84, pegged to 18x FY11F earnings. MAINTAIN BUY."
Company Name: OSIM INTERNATIONAL LTD
| Research House: DMG | Price Call: BUY | Target Price: 1.84 |
DMG & Partners Securities in a June 9 research report says: "OSIM announced that it has placed out $120 million convertible bonds to institutional investors at a conversion price of $2.03, a 25% premium over last closing price of $1.62.
"Potential dilution from full conversion of these CBs would be 8%. Net proceeds of $118.3 million will be earmarked for "potential value-added acquisitions." Market has not taken news of the CB well and its share price has dived 5%. Its TDR listing has been approved which will see it raise $76 million.
"With healthy net operating cashflows of $25 million per quarter, it appears that OSIM is building a war chest for another M&A. Target price of $1.84, pegged to 18x FY11F earnings. MAINTAIN BUY."
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