Having said all the above, basing on my assumption of tan sri's holding cost at rm1.00, after the rights issues n assume he converted all by adding rm0.04 (2x rm0.28) then his average cost will be rm0.52..
Seems not difficult for him to breakeven in near future.. yet to include the free wa..
Uptrending, may I know if time for purchase the right issue has over, what would be the starting price on Monday? And what would happen for those who bought in mothershare yesterday? Would they get additional shares or suffer loss on Monday?
The reference price for the mother share on Monday is the same as the closing price on last Friday, 37.5 cent
Those who bought the mother share last Friday of course would not get additional shares as the rights issue was already over. They not necessary will suffer losses. At closing, there were more than 700K shares buying @37.5 on board.
Just because the rights issue price of the rcps was 24 cents and those who applied for excess got 84% allocation, people assumed that the price of rcps will tumble. If this perception is true, it would have reflected last Friday. The stock market is a forward looking discounting machine. The listing of the rights issue of rcps and warrants on Monday has already been discounted last Friday.
Those who exercised their rights to subscribe for the rcps and the warrants, if their original cost of the mother share was rm1, their average cost after conversion would be 52 cent per wce share, their cost of the rcps would be 48 cent, discounted the warrants.
Most will be selling on strength starting on Tuesday.. Monday only for those privileged.... if qr good, company would have released it before listing of RCPS.. wakaka
Don't think the price was pushed up to 39/40 for shareholders to subscribe b4 payment date. It was market forces. Shareholders if didn't want to subscribe, the undertakers will take cheap cheap.
Those didn't want to subscribe already sold b4 ex and suspect many sold their PR on the last trading day including many of those who bought PR cheap...
Successful Excess Shares application only 78 million, could easily be absorbed. Some may belong to big guys.
Who were the big buyers of the PR on the last trading day on 1st Nov and who were the major buyers of the mother share up to 45 cent b4 the announcement of the red results on the 19th?
Buyers came out strong last Friday @37/37.5 despite cautious sentiments prior to the listing of the rights today.
D new warrants has relatively small volume Vs d mother & PR, hence easier to push higher. But if d strategy well execute; d major players shud push up d mother by hook or by crook, so tat dey can release d WF & PR easily
So cheap... Major shareholders won't release... Can't push down either because of market forces.. Those bulls buy warrants as much smaller capital outlays to gain exposure for the next 10 years.. sooner or later rcps and mother share would catch up if the warrants keep going up..
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....
newbie4444
1,264 posts
Posted by newbie4444 > 2019-11-23 10:14 | Report Abuse
They make a lot from salary how abt you?