1)Dividend in DIGI share 6 for every 25 share held (TDC 10,000 shares means DIGI 400 shares for free) roughly rm 1,900 / 100Lot 1)DiGi to Acquire TdC after Liberalization???
Monday will OPEN PRICE may be 3.60, 10 sen above 3.50 closing price
Time is rewarding its investors. Tdc's fate is to be decided between Time and Digi. Make sense to tell time holders to take on Digi shares because of divestment of Tdc to Digi eventually! That's how I read it! May be wrong, as still dunno what will transpire from this deal actually!
As i understand it, 6 digi shares will be given for every 25 tdc shares held.For 10000tdc shares you will be entitle to 2400 digi shares valued at about RM11600, ie 1 tdc share for 1.16. Am I correct or missing something. chleong, how did you arrive at your figure of 10000tdc shares for 400digi shares
titicamara, the buying is for the dividend in specie, the sell down is because market realise earnings will no longer be supported by Digi's profit/dividends in future anymore! get it? :)
Timecom is definitely rewarding its shareholder ahead of something big! i am still trying to find an election angle play here, but i just think it has to do with Digi's possible intention of taking over! make sense if paid in stock, future stock options and cash!
i think its doesn't make sense if proposal rejected wong. you don't want Digi shares together with your time? I think the major shareholders pretty much have sway and made up their mind. I could still be wrong as i have no material readings as of now!
Hi Kcloh,as for what u said " the buying is for the dividend in specie, the sell down is because market realise earnings will no longer be supported by Digi's profit/dividends in future anymore! get it? :) "
As for what i know, timecon held 3.54% of digi stakes. With the amount of digi stake it held, does it contribute to the earning of Timecom or just a dividend gain? Only subsidiary's profit will be contribute to the parents bottom line? Sorry i am not sure, please enlighten on this matter if you dont mind. Thanks :D
If this stock ever breach RM5 by March-April, CIMB, BIMB and OSK will lose alot of money on their call warrant expiring March-April 2013. Their warrant conversion plus exercise price is equal to RM4 only.
Investment case. We initiate coverage on TdC with an Outperform recommendation and a fair value of RM5.10 after attaching a target PER multiple of 13.4x to its core (excluding DiGi’s dividends) FY13 EPS of 17.5 sen plus the value of the current 275m DiGi shares held (valued based on our RM5.40 fair value). The ascribed target PER to TdC is a 5% discount to its international peers to account for TdC’s much smaller scale of operations. However, we believe TdC’s growth prospects are good, which justifies only a small discount.
Can any expert investor let me know the best alternative ie a. Sell Digi after allotment when Timecom traded ex with price adjustment downward and buy extra Timecom or b. Keep Digi for investment.
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....
qunox
34 posts
Posted by qunox > 2012-10-19 14:46 | Report Abuse
this counter is for long long long investment