Gulf Finance House rights issue

[thajuddeen]

This stock is not illiquid for the last few sessions in UAE market.

Around 1.50 could be an ideal entry for the stock for couple of reasons:

1. It will be then in line with KUWAIT and BAHRAIN and

2. GGICO after the right issue consolidated just above the issue price (1.50).

A gap down on Monday but not hitting limit down could be a buy.

Target buy range 1.45-1.50.

Stop loss below 1.45.
_________________
Take your own decision; and you decide your destiny

[Krazy Guy]

Hi,
Although this is my first posting, it is not the first time i've been here. For months I have read and benefitted from this site.
What tempted me to join now is GFH and Taj's valuable comments about it.
My question is that I have invested in GFH @ 1.80 and saw limit down on Thursday (29 Oct, 2009). My question is, to the more expeirenced and especially Taj, with the GFH rights issue closing on 29th Oct, and allotment date on 05th November 2009, is there a chancep that the share price can come down with 30%+ on allotment date as it was issued at a 30+ discount.
Comments are welcome from anyone who has expeirence and know how on this.
Don't ask me why I invested in it, my mind just followed my crazy heart.

[fayesloan]

I must agree with lala on this company.
Also, it is liquid recently only. It is suicidal if you are buying these shares without a minimum five year view.
Remember, learn your lessons fast. They cost money but learn them because if a 20% loss of capital looks bad now... That could be nothing in the future.

[sharewadi]

[Krazy Guy]

[lala]

sallam and hi to all

General thought,sh 0.05 cents premium rights issue,s fully subscribed,its means company have good potential can,t go further down let,s buyyyyyyyyy.
here i wanna give you example of similar type of non fundamental company:al madina
http://www.bayaninvest.com/pdf/KSE%20Right%20Issues'%20Calendar%20-%202009%20EN.pdf right issue with 0.98 kuwaiti fils premium means 100+0.98 fils=198 kuwaiti fils on 11-06-2009
and watch the graph what happens after those new right issue,s announcement, with company share prices

http://www.gulfbase.com/site/interface/CompanyProfile.aspx?page=stockchart&c=618

guys plz play safe(invest) in only good fundamentaly strong companies,who have arm and feets;)

for the short term trade gfh good buy on sunday near lower lock as taj said,loss max 7/8% chance gain can be 25%, a pure gamble.

http://www.btflive.net/exchanges/company.php?op=viewcustomchart&companyid=336
in march 2009 it was rebound too after 40% correction in kuwait market,and currently circumstances is same as march,but gamble with little money and with tight stop loss


Lala
_________________
its my opinion,money is your,s

[sharewadi]

[thajuddeen]

What was the news in the news paper about GFH?

Today it rose to 122 fils in Kuwait.

Here it broke the double top at 1.59 and a small bubble between 1.60 and 1.62 to hit a high of 1.62 before closing near the low price at 1.55.

It's time to upgrade its trading trading entry range to 1.55-160 from 1.45-1.50.
_________________
Take your own decision; and you decide your destiny

[GPIC]

[lala]

sallam and hi to all
after a long watch wholeday,and smoked 2 packets of ciggerete i also gamble and bought gfh at closing 1.55(pure gamble)exit point:1.63
there is nothing news that capital in kuwait or bahrain change or prices suppose to be different,what i understand from disclosur.my arabic not good as same as my eng
but my six sense telling me,that right issue,s they sold around 300 millions dollars in last few days,
in this very bad time of liquidity crunch and company performance,they deff made some commitments with investors for good,so its very possible they might show some profit on 12-11-2009 for this qtr(hopefully).
and in kuwait stock exchange today its showed good performance too when index down around 50 points.
mainly i bought gfh to make some money for grocery,
let see
play safe
lala
_________________
its my opinion,money is your,s

[GPIC]

[thajuddeen]

[lala]

[thajuddeen]

[famj]

hi taj, boss can u advise whether i should sell gfh at any price above 1.70 to buy back later at around 1.60 to reduce our losses, since i bought it @ 1.90. thanks.

[Krazy Guy]

Got this from the London Stock Exchange Website...

Since the rights issue the stock is holding very well in Kuwait and Bahrain.
I wrote in another topic that it was trading at 4.5 pounds n LSE and just a week ago it was above 5 POUNDS.

Press Release 02 November 2009:

GFH completes the subscription of its US$300m rights issue offering to existing shareholders of the Bank With further announcements likely, GFH will have raised US$450 million of fresh capital in just over a month Manama, Bahrain: Gulf Finance House (GFH), the leading Middle Eastern Islamic investment bank announced today it had completed the subscription of its US$300 million rights issue offering to existing shareholders of the Bank which closed on Thursday 29th October. The popularity of the capital raising alongside the continuing success of the banks broader capital raising initiatives means GFH will have raised a total of US$450 million. The additional liquidity will support the execution and implementation of the Bank's strategic plan to become a diversified and broadly based Islamic investment bank. A separate announcement will be made regarding the details of the rights issue. The rights issue is a key component in a three part capital management plan designed to raise between US$300mn and US$500mn. The plan includes a rights issue of up to US$300m, the placement of up to two US$100 million convertible murabaha facilities and the sale of non-core assets. In addition to the US$300m subscription of its rights issue in recent weeks, GFH announced the planned placement of the first US$100 million dollar murabaha with Macquarie Group and the partial sale of Qinvest to Qatar Islamic Bank for approximately US$50 million. GFH Group CEO Ahmed Fahour commented on today's announcement saying, "When we embarked on our capital raising initiatives, we knew success would be governed by the level of faith our shareholders and strategic partners had in both the refined business plan and the team responsible for its implementation." With over US$450 million of new capital that will be available shortly, alongside advanced discussions on the placement of the second US$100 million murabaha facility and further non-core asset sales, GFH has a clear mandate to pursue its goal of emerging as the world's leading Islamic investment bank."

http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10257653

[thajuddeen]

[thajuddeen]

GFH uderperformed in Dubai. In Kuwiat it closed lower after hitting higher high.

In Dubai it closed a fils lower on the PIVOT. It still has a chance to hit 1.68-1.69, if it opens above 1.57 with a bullish kicking.

Good luck to the holders
_________________
Take your own decision; and you decide your destiny

[thajuddeen]

It opened at 1.59 only to mark it as the HIGH.

A burst off is cleverly held on the stock.

It looks like an accumulation technique is applying on the stock and it may be forced to lower prices before a strong rebound taking place.

It certainly has the approval to burst off this month but some players want to frustrate and bore you and possibly force to sell before the burst off.

It's just a possibility.
_________________
Take your own decision; and you decide your destiny

[thajuddeen]

The stock is coming closer to right issue price.

I will be interested to buy it at 1.41.
_________________
Take your own decision; and you decide your destiny

[sam111sam]

[OnlineTrader]

[dov222]

i picked up some today at 1.44.
my fear is that it stays stagnant in the 1.45-1.55 range for a long time.

im very patient, upto a week. kidding aside, i think its days of limit ups are over though for now. The best we can hope for is that it delivers a better performance by next quarter.

its listed in 4 exchanges, so if it will rise, it will need to do so on all fronts, and that will slow it down maybe.

[thajuddeen]

If it falls to 1.39, we might still have a small break out.

If there is no positive news up in the sleeve this stock is going to be a dull one like GGICO which fell to 1.51 after a right issue at 1.50.

GFH right issue price was $0.38 that's equalent to Aed 1.40.

In Bahrain stock fell to a limit down to $ 0.40 yesterday and in Kuwait it fell to 110 fills.

The stock had rosen to 124 fils in kuwait this week from 108 fils. In line Dubai should have registered a price of 1.65 but instead it hit only 1.62 from 1.44. So the 3 fils difference it will deduct from 1.44 to reach 1.41.

Hoping there will be a mathematical parity between Kuwait and Dubai, I will try my luck at 1.41.
_________________
Take your own decision; and you decide your destiny

[dov222]

Ok, this share has broken down, there is no clear support now.

Previously, i was under the impression it wouldn't fall below the rights issue price of 0.38 $ , or AED 1.4, but that theory has now fallen.

made its way today to 1.32 quite easily, and even there, it didnt look to be well supported.

Of course, the company has had a few positive announcements recently, but the Kuwaiti stock market is in total break down mode, so there is no telling how low it can go, (since the price here seems to follow that in Kuwait, where it trades with good volumes.)

This could be a good investment 2 years down the road.. but
personally, i will exit at the first decent bounce and take my losses.