Stock Name: Goodpack
Company Name: GOODPACK LIMITED
12 September 2011 : Goodpack
Summary: Goodpack currently has 63,998,910 warrants with a strike price of S$0.68 outstanding. These warrants are due to expire in Nov 2012 and will lapse if not exercised by then. Since its financial year-end in Jun 2011, 268,000 warrants have been exercised. With the remaining warrants in-the-money, we expect these warrants to be fully exercised (barring any significant market event), which will add 13% more shares to its total shares outstanding and raise S$43.5m for the company. Although this warrant exercise will not impact our revenue growth forecasts for the company, our valuation per share of the company will be reduced correspondingly to account for the increase in shares. Assuming full conversion of the warrants, our previous fair value estimate of S$2.15 is now reduced to S$1.90 in anticipation of the increase in shares outstanding. Maintain BUY.
Company Name: GOODPACK LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.90 |
12 September 2011 : Goodpack
Summary: Goodpack currently has 63,998,910 warrants with a strike price of S$0.68 outstanding. These warrants are due to expire in Nov 2012 and will lapse if not exercised by then. Since its financial year-end in Jun 2011, 268,000 warrants have been exercised. With the remaining warrants in-the-money, we expect these warrants to be fully exercised (barring any significant market event), which will add 13% more shares to its total shares outstanding and raise S$43.5m for the company. Although this warrant exercise will not impact our revenue growth forecasts for the company, our valuation per share of the company will be reduced correspondingly to account for the increase in shares. Assuming full conversion of the warrants, our previous fair value estimate of S$2.15 is now reduced to S$1.90 in anticipation of the increase in shares outstanding. Maintain BUY.
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