@murali There's a fixed interest rate on the -LA, isn't there? And should this company close, would it be the -LA holders who are first in line when it comes to liquidation proceeds?
The major benefit of having LA is that u pay Rm0.25 noww and u could earn 5% coupon rate per year(on Par Value of Rm0.50) and also get back RM0.50 upon redemption of it.
Sounds very good right? Provided the co is able to do so
These look reasonable enough. Especially if one is looking for fixed income. Rain or shine, Hiaptek still has to cough out the 5% or it would be in default. This industry (steel) isn't exactly too healthy though, and there might be issues down the road. Then it will be the usual drill - loan stock holders having to take a haircut etc. But for the moment, Hiaptek is starting on a fresh note with the new capital. The -LA might be worth the risk, all things considered.
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....
emos82
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Posted by emos82 > 2016-06-28 09:29 | Report Abuse
Last time I said 0.19