Published by Bilyonaryo
Shareholders of Cirtek Holdings Philippines Corp. are probably scratching their heads over the stock’s underwhelming performance in the middle of its P1.4B stock rights offering.
Shares of TECH closed at P5.21 per share during Friday’s trading, down 25 percent from an intra-day high and below the P5.50 subscription price for the SRO.
Should shareholders subscribe when they can buy shares for cheaper at market?
Nicky Franco, the head of research of Abacus Securities, said taking up the TECH rights with its bonus warrants should be a “no brainer.”
Franco estimated that the warrants, which comes with the subscription of the rights shares, were worth between P0.99 and P2.82 based on Bloomberg’s warrant valuation model.
This means that even at P5.21 plus the minimum P.99, the stock is well above the strike price of P5.50. The warrants come free of charge, as a bonus, to those who subscribe to the offering.
Franco cited the history of Leisure Resorts and its warrants, LRW, to illustrate his point that share price should not only be compared to the strike price.
The report pointed out that LRW, which has an exercise price of P15, rose to as high as P7 even though shares of LR itself maxed out at P12.
Franco expected TECH’s second quarter earnings “to be as good” as the first three months when the firm posted wide margins and on the back of higher orders (boosted by the current chip shortage) and the extension of Quintel’s master supply agreement with two major US telcos (five-years from the original one year deal).
Abacus Capital and Investment and PNB Capital Investment are TECH joint issue managers and lead underwriters.
Jul 05, 2021
When Brian Liu stepped up to the role of CFO at electrical component manufacturer Cirtek Holdings Philippines Corporation in the middle of 2020, the world was undergoing intense upheaval as the maelstrom of the COVID-19 pandemic swirled.
Lockdowns, and production and logistical issues became commonplace around the world. So how did he tackle this huge new opportunity amid such turbulent times? The promotion from his former position as Executive Vice President at Cirtek Electronics, a Cirtek subsidiary, came as something of a surprise, Brian tells The CEO Magazine.
But while he...Read more
Jul 14, 2021
Published By Maria Romero Daily Tribune
Quintel USA Inc., the United States-based unit of Philippine Stock Exchange-listed firm Cirtek Holdings Philippines Corp., has extended a master supply agreement with two telecommunication companies in North America.
In a disclosure, Cirtek said the agreement between Quintel USA and two unnamed carriers provides for a business extension of another five years.
“This comes at a time following a series of new product introductions released by Quintel when fifth-generation (5G) is at an inflection point,” Cirtek said.
It added, “Quintel’s 5G products are pre...Read more
Sep 16, 2020
A SUBSIDIARY of Cirtek Holdings Philippines Corp. has been awarded a contract to provide antenna to a telecommunications operator in the United States for fifth generation (5G) network rollout.Read more