Hahaha ! Maybe uncle never have a chance to learn a Mandarin phrase " 洋毛长在洋身上 " has thr same meaning of "its all come from your own pocket" . Maybe uncle dont even care, he care to be able to distribute his tickets to most ikan bilis .
Well written. Investor education is very important.
Value of free warrants come from "a cut of the potential bright future of the company", its future dilution. Theoretically it should reduce present value of mother share....
The problem of uncle is (always) difficult to sell.
Focus on the performance and the value of the business, not these corporate gimmicks and the short-term price movement, you will do better in your investment journey. Avoid all those noises in investing, and you will do satisfactory in your long-term investing journey
Rule of thumb: - If you want to find a quality stock, find one that never issued any new shares or 'sweeteners' like options or warrants - If you want to identify a successful investor, find one wear slightly sluggish instead of ones in tie and suits - If you want to be a great investor, focus on things that don't change instead of some secret formulas.
As a previous shareholder of instacom back in the day when they got the rest Malaysia tower contracts, I am very sad to see the progress of the company today. I still have a few odd lots of The warrants given free with my odd lots of unsellable instacom in my portfolio, a lesson in buying quality and following good companies.
In other major news, London biscuit defaulted again on a paltry 22.5 million loan, while Nestle has given out 70 cents dividends on a stellar yoy growth of 8.2%.
What can you deduce from the rise of the shares of EAH and Vivocom and their free warrants after announcements of each exercise and subsequent drop?
Obviously, those were the times insiders and manipulators made use of these corporate exercises to jack up the share price of the underlying shares, in return the price of the warrants, and they distributed their shares including free warrants to the big pool uninformed speculators and greater fools.
These followers of the greater fool theory were left holding the shares and warrants at a huge loss and continued to stare at the sky.
So, be careful, few things, very few are free in this world, especially in the stock market.
Posted by Dato Seri John Lu > Nov 12, 2019 7:52 PM | Report Abuse Good one kcchong.. Really a good article
It is rewarding in sharing useful investment views in i3investor.
Some time ago whenever I wrote articles giving opposing views to certain individual, which I think are very useful articles for sharing purpose, I always got personal attacks, including the above commentator.
It is heartening to know that many, not only the above, which I read from their recent comments, realize my good intention, or shall I say noble intention.
This gives me motivation and joy in sharing my investment philosophy here. Thank you.
Posted by yfchong > Nov 12, 2019 9:22 PM | Report Abuse Hi Sifu., good sharing
Thank you very much. I hope you have improved your investment skills and also investment return since you have graduated from my course a few years ago,
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Dato Seri John Lu
5,187 posts
Posted by Dato Seri John Lu > 2019-11-12 19:52 | Report Abuse
Good one kcchong.. Really a good article