Hi, understand that 0.05 is required to convert PUC-LA to PUC. But the price for PUC-LA and PUC is 0.245 & 0.335 (0.09 different). Why this happen? Is this mean that we buy PUC-LA better? Any thought? Please advise. Thanks.
two types of conversion. 1) Two LA to convert One mother share 2) One LA plus 5 sen to convert One mother share. Ofcourse we will choose the second one. right ?
Key difference between LA and PUC shares (also WA & WB) is that generally the later are more active and hence more liquid and then probably more speculative. Mind also that there is a time lapse during conversion whereby the share may drop n reduce the price difference beside the necessary admin work for conversion
But the market react differently these 2 days. 0.33 (PUC) vs 0.24 (PUC-LA), different 0.09. Logically, both PUC and PUC-LA should be different around 0.05. Not sure why these 2 days the gap is bigger. That why I am asking if any Sifu here can advise better.
If PUC-LA is worth to invest (0.24 + 0.05 = 0.29 [0.04 cheaper if we buy PUC direct at 0.33]), why PUC-LA just 0.24 when PUC is 0.33.
If u look at the "Additional listing" announcements, u will see smart people are buying LA and converting to mother and enjoy the gap discount, while dump people are selling LA to the market at this kind of price :)
Horizon123, No gap? LA still a better buy always due to 1) earn fixed interest 2) rank priority before share for liquidation purposes 3) Gearing effect
Buy LA for conversion purposes only if u believe that share price will at maintain or at least not drop for more than 4 sen from now due to the time lapse for conversion. If feel that price will drop by that much or more, don't buy even the LA n esp the much more expensive PUC shares. But note in share market, nobody will guarantee make money !!!
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Vision48
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Posted by Vision48 > 2017-12-20 15:59 | Report Abuse
paktua still holding masteel?lol