Who owned 10 units of Affin share by 12th June will get 3 new units , but need to pay RM 2.76 per share for that new 3 units.. Is't right? We pay RM 2.76 to get RM 3.64 value share ( as per today price )
if u want to buy wait it exercised the right issue. the price will definately go down. then only u accumulate at low. anything below RM3 is good bargain.
better sell now then buy back after the right issue as it may be another MBSB which the price dropped from RM3.2 to 2.2 now....terrible...I am caught till now...sigh...
For the past 2 years, the dividend given was RM150 each unit. It is equal to 4.2% based on current price. The return is good as a long term investment.
SNCA, you will received a letter and application form. The form will let you know how many right issue shares that you are entitle. You need to prepare bankdraft and send it to them by using the envelope prepared. Also, need to stick HASIL RM10 stamp. There is excess right issue column as well. Which means, you can request for more right issue shares (but depends on their decision whether to give or not). Then, you also need to prepare another different bankdraft. Bring along the letter to bank when you purchase the bankdraft so that they can write the proper and correct issue name
Invester, I am a newbie here and just would like to consult you something that I am not so sure about. Affin bank's right issues is about 30% of its total shares. So does not mean its future dividend will also be 30% less??? Thanks :)
CautionsTrader, I am also not the expert, but I will share what I know. The purpose of right issue is to collect more money from investors to expand the company. You are right that the dividend might be get lesser with the additional shares IF the company still earning the same amount of money after right issue the shares. But normally, you will see improvement in the revenue and profit if the company is doing a good planning with the additional cash. 2 year back, Affin was adopting a dividend policy to pay a minimum dividend based on 50% of the Company's net profit (read the news in below link posted in year 2012). If Affin can generate around 30% more profit, then we shall entitle for the same dividend as before the right issue. Hope this help.
i believe Affin is out to expand and grow. will have to wait and see how this pans out withthe dividend policy. however, given that it's under the Boustead/LTAT umbrella, can expect that DY to be at least 3.5~4%
CIMB was trading at 1.70 times book value, RHB Cap at 1.29 times book value and MBSB at 1.60 times book value...but affin not even 1 times book value,it's totally undervalue
if the price go down,that means jacpot prize money is growing...if the price go up,well..u hit some consolation prize,either way is good for you...buy now
Affin bank is much undervalued and might take over by maybank. The affin share price will be push to 4 mark very soon to prevent the take over. Target price 5.50
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....
bonnietan1965
22 posts
Posted by bonnietan1965 > 2014-05-27 17:28 | Report Abuse
Fly888888 . Thanks , will sit ur advice