Posted by soojinhou > 2015-08-06 20:35 | Report Abuse

Also, due to the competitive nature of investing, other investors are probably eyeing the same arbitrage opportunity as you. Meaning that there will be a surge of conversion and sale of shares, which will bring down the mother share price and reduce the arbitrage margin

Posted by Icon8888 > 2015-08-06 20:47 | Report Abuse

Thanks KC for highlighting this issue. I hope paperplane learns his lesson this round. There are many traps in stock market. Don't be naive and go for quick profit. You will get burnt. This article is a must read for everybody.

Posted by TengkuFaisal > 2015-08-06 20:49 | Report Abuse

arbitrage in bolehland? crazy la.

in the 90s when there is clob and therefore abundance of liquidity from spore, u can arbitrage. without liquidity, mkt is not efficient. how to do that?

Posted by tkp2 > 2015-08-06 20:53 | Report Abuse

Seem like TengkuFaisal aka Optimus is smarter than Paperplane, hahaha

Posted by Icon8888 > 2015-08-06 20:53 | Report Abuse

Some people are naive...

Posted by TengkuFaisal > 2015-08-06 20:59 | Report Abuse

millions time i have to remind you i donno optimus.

Posted by Icon8888 > 2015-08-06 21:03 | Report Abuse

People mistook u as optimus because u always use Laugh Die Me

That is optimus favorite phrase

Posted by LaoLiu > 2015-08-06 21:03 | Report Abuse

Good article, a must read for all the investor(lang).

Posted by tkp2 > 2015-08-06 21:04 | Report Abuse

Nvm lah, just pretend lah

Posted by TengkuFaisal > 2015-08-06 21:04 | Report Abuse

oic. nvm.

Posted by Icon8888 > 2015-08-06 21:05 | Report Abuse

Must read. Paperplane has dragged many people into it by going around to promote the concept

Very irresponsible

Posted by paperplane2 > 2015-08-06 21:33 | Report Abuse

Hahahaaha! Thanks kc

Posted by paperplane2 > 2015-08-06 21:34 | Report Abuse

Thanks.

Posted by paperplane2 > 2015-08-06 21:34 | Report Abuse

I shall show u my little profit in my blog soon.mymalaysiainvesment.blogspot.com

Posted by paperplane2 > 2015-08-06 21:35 | Report Abuse

And i manage sell when it strt dropping! Locking in my 20% margin

Posted by paperplane2 > 2015-08-06 21:36 | Report Abuse

Also! This is for SMRT ppl! As I said, it is an art! Not for idiots like icon8888

Posted by NOBY > 2015-08-06 22:19 | Report Abuse

How about the undergraduate O&G SPACS trading below cash right now ? With expected annualized returns ranging from 10% to 14% to the expiry date, I would say they are close to risk free at current prices... just for discussion purpose....

Posted by paperplane2 > 2015-08-06 22:25 | Report Abuse

Yes! Noby is sharp! If no core biz! But most of them will die die acquire some assets, in order for them to dig money more!! This what spac for!

Posted by paperplane2 > 2015-08-06 22:39 | Report Abuse

www.bursamalaysia.com/market/listed-companies/company-announcements/4821509

Posted by paperplane2 > 2015-08-06 22:39 | Report Abuse

www.bursamalaysia.com/market/listed-companies/company-announcements/4819369

Posted by paperplane2 > 2015-08-06 22:40 | Report Abuse

www.bursamalaysia.com/market/listed-companies/company-announcements/4815481

Posted by NOBY > 2015-08-06 22:56 | Report Abuse

You can still get your money back by voting against the QA when they announce one.

Posted by chonghai > 2015-08-07 08:26 | Report Abuse

"If it seems too good to be true, it probably is"

Posted by murali > 2015-08-07 08:29 | Report Abuse

Chonghai, sometimes this does happen...maybe 1-2 times of 10 times....example, Bornoil-WA's exercise price was being adjusted from RM1 to RM0.10 last year following the reduction in the par value of the mother shares...which gives a new lease of life to WA holders

Posted by murali > 2015-08-07 08:32 | Report Abuse

For the most recent case, TMS-Wa, it's number of shares and exercise price remain unchanged while the mother shares are consolidated from 2 to 1 share

Posted by paperplane2 > 2015-08-07 08:42 | Report Abuse

hehe, murali notice! YES! ARBITRAGE HAPPEN in Malaysia! Ive seen them happen!Good example is takeover case where TP already known, yet market not reacting to it! Most of the time you get like 10-20% return!

JOBST is good example, where TP keep raising up!

Posted by murali > 2015-08-07 08:45 | Report Abuse

But for your Asdion-WA, it's clearly a Holland Case...

Posted by murali > 2015-08-07 08:48 | Report Abuse

Get to know the Boss, Tey Poh Yee

Posted by lextcs > 2015-08-07 08:58 | Report Abuse

same as asiabio many months ago...same as connect recently....
mother share sold 0.285
buy wa @ 0.15 realising an immediate 0.035 gain
did the conversion @0.10 and ended up with the same holding all over again.
By the time the listing of the conversion it was 0.20-0.21 ...now hovering @ 0.245 and warrants 0.13-0.135 a discount of roughly 10%

The only way To minimize these shark operators from fooling the public is Bursa has to speed up the time frame for the listing of conversions. That means instead of 2 weeks registras must apply the listing in 2-3days upon submission of warrants.

Its a laughing stock that warrants are trading @ a discount to its underlying stock.

Posted by murali > 2015-08-07 09:18 | Report Abuse

For Ace Counter Wa which trades at discount, think twice

Posted by murali > 2015-08-07 09:20 | Report Abuse

For Tey Poh Yee's counter wa trades at discounts, think many many times

Posted by firehawk > 2015-08-07 09:29 | Report Abuse

this type of frog ia always poison frog ....

Posted by paperplane2 > 2015-08-07 10:28 | Report Abuse

hehe, I like tey por yee, I make money trading his stocks

Posted by paperplane2 > 2015-08-07 13:42 | Report Abuse

see my proof of profit here!!!

http://mymalaysiainvesment.blogspot.com/2015/08/what-do-i-do-when-i-see-big-arbitrage.html

Posted by thebadguy > 2015-08-07 13:44 | Report Abuse

huh? you talk so much only talking bout RM1-2k?

Posted by paperplane2 > 2015-08-07 13:46 | Report Abuse

HEHE! YA! This is just a sample from my little portfolio, I have others which I dun wanna show

Posted by paperplane2 > 2015-08-07 13:48 | Report Abuse

As long as I make money, who cares???? KC chong, it is risky, but I can manage! as it is small compared to my total portfolio. So it is calculated risk

Posted by Icon8888 > 2015-08-07 14:28 | Report Abuse

What u showed were trades that u made money. There is a huge chunk that lost money but u didn't show

Don't repeat the costly mistake again. Market got a lot of traps

Posted by Icon8888 > 2015-08-07 14:32 | Report Abuse

Btw, your portfolio real small. Next time don't talk so big

Posted by tko111 > 2015-08-07 14:33 | Report Abuse

Lembu no shame.. still talk big when all followers losing money...show you ass...let me kick you in the face

Posted by kcchongnz > 2015-08-07 16:22 | Report Abuse

Posted by paperplane2 > Aug 7, 2015 01:48 PM | Report Abuse
As long as I make money, who cares???? KC chong, it is risky, but I can manage! as it is small compared to my total portfolio. So it is calculated risk


Don't get me wrong that I am saying that you should never do risk arbitrage. It is a very powerful concept in investing as I have said.

I myself constantly looking for arbitrage opportunity, I mean risk arbitrage. There ain't any risk-free arbitrage around. I wrote about a few of risk arbitrages in i3investor before. The first one was KHSB which was a very successful arbitrage taken by me as there was no manipulation by anyone in this stock.

http://klse.i3investor.com/servlets/forum/800001149.jsp?ftp=39

The next one was Asupreme LA.

http://klse.i3investor.com/servlets/forum/800001290.jsp?fp=4&ftp=2

This there was manipulation by insiders and syndicates, I think. But I was successful with it and I didn't have to convert to the underlying share.

There is another one which is more of sharing of idea for Kuchai:

http://klse.i3investor.com/blogs/stock_pick_2014_kcchongnz/43763.jsp

This there is the limitation that nobody can do anything about the price-value diversion, at least for now.

So there is high probability that one can make money from risk arbitrage if he understand the diversion of price Vs value. But beware that most of the time, there won't be big fat frog jumping around. So never put all your eggs there.

Asdion is a clear and present example. The share price of the underlying share has dropped from RM1.50 to less than RM1 now, for a loss of 35% in just three weeks. For those thinking of arbitraging the warrant got hurt, badly. This is a clear manipulation of somebody.

Posted by Icon8888 > 2015-08-07 16:25 | Report Abuse

paperplane is one of the victim

Lost his underwear

Posted by duitKWSPkita > 2015-08-07 16:34 | Report Abuse

thanks for sharing KC CHONG...
appreciate ur kind time for analysis always.............

I have feeling another 25 years my English also cant as good as urs. KC CHONG, I love FA so I never miss all your FA write up.

KC CHONG, may I request if possible to re-analyze VS's financial performance on next QR report. I like to learn should they have certain improvement in facts and figures after the expansion. No doubt CIMB presents an attractive TP of RM7.10(almost similar with KYY's) but no harm to do an analysis before & after business growth.

Again, thanks Senior Kc Chong.

Posted by paperplane2 > 2015-08-07 16:59 | Report Abuse

someone jealous on my 17% return in short time! I take kc view positively. Yes, who dunno tey por yee like manipulate shr price! I managed to take money from his mouth! if you so damn good, show me you can also? Why not?

Posted by Icon8888 > 2015-08-07 17:00 | Report Abuse

Duit you better be careful with that green suit, paperplane might have you mistake as a frog

Posted by duitKWSPkita > 2015-08-07 17:04 | Report Abuse

hahahah Icon8888.....

is ok la.... I tak buat hal in i3 anymore... I say sorry and walk away recently.... I really tak berani buat hal ad..... now go back to my silent world only..... I scared KC CHONG treat me as GREEN FROG PRINCE...

hey KC CHONG, you like to eat Claypot Green Frog? The very very GREEN type? I always see KC CHONG very serious. I dare not to say hello to him also...... but me ada curi curi read his FA analysis la.....

same same ma.. Icon8888 I read n re-read all ur stock write up.. I love the way u contribute also ma... I enjoy in reading ur blog ma...


KC CHONG, Icon8888 and paperplane2...
Happy weekend. Bye for now.

Posted by paperplane2 > 2015-08-07 17:08 | Report Abuse

tht's de man! learn from duit, icon8888. you react macam 2yr old kids

Posted by Icon8888 > 2015-08-07 17:28 | Report Abuse

U should be the one that learn from Duit

Your abrasive behavior offended many people

I am merely cleaning up on behalf of the forum

Posted by kcchongnz > 2015-08-07 17:28 | Report Abuse

Posted by duitKWSPkita > Aug 7, 2015 04:34 PM | Report Abuse

I have feeling another 25 years my English also cant as good as urs. KC CHONG, I love FA so I never miss all your FA write up.

DUIT, ARE YOU KIDDING? I ONLY STARTED TO LEARN "HUMPTY DUMBTY SAT ON A WALL" WHEN I WAS 13 YEARS OLD!

KC CHONG, may I request if possible to re-analyze VS's financial performance on next QR report. I like to learn should they have certain improvement in facts and figures after the expansion. No doubt CIMB presents an attractive TP of RM7.10(almost similar with KYY's) but no harm to do an analysis before & after business growth.

DUIT, ARE YOU KIDDING AGAIN? THE PERSON WHO KNOWS V.S IS THE ONE MENTIONED IN YOUR POST HERE. NOT ME. I AM JUST UNINFORMED CRITIC.

Posted by paperplane2 > 2015-08-07 18:55 | Report Abuse

Congrate to u th