the preference share can't be converted. its an individual share that gives u 5% dividend & worth rm1 when company buys it back. tenure is 5yrs expiry.
But Insas convertable to mother share, unlike Omesti. If hold till 5 yrs maturity, the yield is superb. Unlike Insas, ony provide annual fair coupon rate
INSAS & OMESTI shares the same rights exercise. both is preference share, only would be bought back by company at rm1. Its non-convertible. As far as i know..
should rm50+150, right? if u bought 1000 unit, its 1000 x 0.85 dividend is 5% of 1000(based on rm1 PR), should be rm50. capital gain from PR is 0.15 x 1000 = 150.
PB being sold at such low price, probably could be due to the PR subscription package .... bcos if adding all up PR, PB, WC, is still break even (no loss), so, they can sell the PB at such low price .....
They are people buying subscription rights for a one-off gain, not intend to hold long. They get back their capital and look for other RI ......
Compare to the same type, Insas-PB, Omesti-PB is obviously cheaper ..... while Insas could be in better financial strength, default on this Omesti-PB is quite unlikely. As long as Omesti is capable to redeem, financial strength of the issuers shouldn;t be too much concerned.
Moreover, the proceeds from PB is mainly for funding the project awarded by TM, this is quite a well defined financial borrowing, which makes the default even lower!
Hope the PB price will move up to match those the same type, after the selling wave subsides ...... :-)
@CharlesT, now the WC @0.15 so untung liao! If mother bought @50sen, can afford to sell PB@70 Sen still makes profit. So, PB can go down more as some ppl may not want to wait 5years!
Not practical to get mother at 50c prior to the RI ex-date. Lower ones is at 54c. Lets just wait, as the PB price is quite illogical at this moment. 5% annual dividend at $1, good prospects in future business.
WC shoots up doesn't reflect ppl confidence in the company. Warrant price usually due to speculations. However the PB price does reflect ppl confidence.The lower the PB price the less the confidence in the company and public perception of default. Just compare Insas PB and Omesti PB .
@market101 Thanks for explaining. Just now, mother shot up 10% Of course, very happy but wondering what's the push factor?? The most recent news is the court case with SSM. Is it because Omesti has good chance to win?
I saw Omesti wining quite s few contracts and the RI was to support the 95 mil TM project, that's why I participated in RI!! With this 10%up,breakeven and moving into profit :)
@market101, As I read more into Omesti, more confident with Omesti. Can't see it defaulting. Besides quite many significant contracts, it's also selected as one of Huawei's partners last year. So will sit back and let Omesti grows :)
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Posted by wee2000 > 2021-03-22 15:53 | Report Abuse
the preference share can't be converted. its an individual share that gives u 5% dividend & worth rm1 when company buys it back. tenure is 5yrs expiry.