Absolute Energy Public Company Limited or EA shares appear to have been reborn. Behind the bondholders, it was decided to extend the maturity of the 4,000 million baht bonds as proposed by the company. Stimulating the stock price to rise sharply
EA notified the stock exchange during the morning trading break of last Friday, August 23. It refers to the bondholders’ meeting’s decision to approve extending the 4 billion baht bonds by another 9 months and one day from the redemption maturity date of September 29, 2024 to June 30, 2025 by increasing the interest rate for holders by another 1.80% per annum for the bonds.
EA's share price immediately rose sharply. In response to the good news that bondholders had agreed to extend the redemption period, it closed at 7.55 baht last Friday, up 1.60 baht or 26.89%, with a trading value of 3,714.50 million baht.
Since August 15, when EA shares closed at 4.08 baht, for 6 business days, the stock price has increased by 3.47 baht or an increase of 85.04%, which is the stock that has increased the most compared to other stocks during the same period.
Supporting the stock's recovery is investors' easing concerns about a default on their short-term debt. In particular, the 5.5 billion baht bond debt, which bondholders agreed to extend the redemption period until the middle of next year.
There are also rumors that several large venture capital groups are interested in joining a joint venture with EA, but there is no confirmation of investment by a large venture capital group yet.
There is no concrete good news about finding a major partner to join the joint venture or a bright direction for earnings growth, but EA's stock price has rebounded again. Due to the relief of debt default issues in the short term. Which will free the company from the pressure of finding money for a while.
EA management has about 10 months to find new financing. Set up a reserve fund to redeem the bonds.
There is time to restructure the business. Expanding the company's income base has made operating results tend to grow. Restoring investor confidence
And as the deadline for a 5.5 billion baht bond payment approaches, around the middle of next year, investors will likely be watching EA’s financial woes again.
But during this time, we may have focused more on the stock price. Along with the question of whether EA stock will survive or not.
The price rose to 7.55 baht, responding to the news with a breath of fresh air. There is no need to repay debts on maturing bonds. But has the reaction to the good news subsided yet? The main claimant of speculators
Because if you have absorbed all the news the ceiling is likely to be narrower. Until there is new good news to motivate us. Which investors should watch.
EA’s big uptrend could mean it’s time to turn off the heat. Speculators who want to jump in and pick up shares might think it’s too late. You have to wait for the next round of uptrends.
In the short term, EA stock price has risen to a risky level. Speculators who want to venture into this should be careful.
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