If you hold 10,000 unit of mother shares...after split becomes 20,000 units
For free mother shares bonus if i understand..what was agreed is PROPOSED BONUS ISSUE OF 267,500,005 NEW SPLIT SHARES (“BONUS SHARES”) ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY FOUR (4) SPLIT SHARES HELD ON THE SAME ENTITLEMENT DATE AS THE PROPOSED SHARE SPLIT (“PROPOSED BONUS ISSUE OF SHARES”)
So..20,000 ÷ 4 = 5000 new bonus mother shares will be received ? Am i correct ?
Econbhd is worth to buy short or medium term, if u buy now u oldy make profits immediately... Why? Becoz the free Warrant oldy help u to make profits! If free warrant premium can go to 50% , warrant price will be Rm 0.690 ! Jz buy on weakness, is a sure win investment for Short or medium term !
@flash777 not sure about this stock going south after split and all, reasons its movement is not that drastic like those semicond and the fundamentals has not change also, plus it is a good proxy to get involved in the construction industry in the country. I reckon it will follow Gkent pattern movement. Go check out Gkent.
The free warrants is worth 37.5sen per piece, if were to assume premium of 30% and if Econpile ex price is RM 3.12 with warrants conversion price of RM 1.25
I would like to share how to calculate the all ex-price of ECONBHD taking today's closing price of RM3.08 and the exercise price of the warrant at RM1.25.
Assuming an investor has 2 ECONBHD shares. After the split, he/she has 4 ECONBHD shares and with this 4 splitted shares, he/she is entitled for 1 bonus share and 1 free warrant. Hence, the all ex-price = (2 X 3.08 + 1 X 1.25)/(4 + 1 + 1) = RM1.235 (rounded to RM1.24). And the ECONBHD-WA starting price = RM1.24 - RM1.25 = -RM0.01.
I have yet to buy any ECONBHD shares because of my bitter experience from the corporate exercise of SUNWAY, as follows:
i. Proposed bonus issue of up to 2,804,471,128 new ordinary shares in Sunway (“Sunway Shares” or “Shares”) (“Bonus Shares”) on the basis of four (4) Bonus Shares for every three (3) existing Sunway Shares held on an entitlement date to be determined later (“Entitlement Date”) (“Proposed Bonus Issue of Shares”); and
ii. Proposed bonus issue of up to 631,006,003 free warrants in Sunway (“Warrants”) on the basis of three (3) Warrants for every ten (10) existing Sunway Shares held on the same Entitlement Date as the Proposed Bonus Issue of Shares (“Proposed Bonus Issue of Warrants”).
Its cum price was RM4.38 on 26/9/17 and its all-ex price was RM1.87 on 27/9/2017. Its SUNWAY-WB price hit limit-up on the first day at RM0.305, hit the second limit up on the second day at RM0.605, blocked by Bursa Securities at RM0.605 on the third day and went to a high of of RM0.735 on the fourth day (11/10/2017) with high volume.
But what happens to SUNWAY and SUNWAY-WB prices today (14/12/2017)? They are only RM1.60 and RM0.53 respectively.
Assuming an investor holds 60,000 shares of SUNWAY at cum price RM4.38 (with a cost of RM262,800). He/She is entitled for an additional 80,000 bonus shares making the total mother shares to be 140,000 and 18,000 free SUNWAY-WB shares. What is the total value today (14/12/2017)? It is = (140,000 X RM1.60) + (18,000 X RM0.53) = RM233,540.
As of today, it is a huge lost of RM262,800 - RM233,540 = RM29,260 (lost).
For me, I can vividly remember I sold everything on 10/10/2017 (when Bursa Securities blocked SUNWAY-WB price at RM0.605 - because a share is not allowed to hit limit up on three consecutive days) with just a very minor profit of RM723.50.
construction sector is not in focus now. so it's normal that price is not moving. you need to wait until next year feb and mar for this sector to move forward
@ChloeTai, thank you for sharing ur Sunway experiences. Sunway is a very reputable counter with strong asset and cash generating abilities. Too bad that you cut lose, if i were you i will keep holding on. You have Suncon, Sunreit all under sunway group, who knows later you will have SunMed for its medical division. From the time of your writting and the actual price i see now, already become RM1.7 and warrant RM0.58. Looking at the bright side, more people can afford to buy sunway now, when mother share go up, eventually the warrant will have to follow also.
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....
calvin
249 posts
Posted by calvin > 2017-12-01 17:18 | Report Abuse
so finally after bonus the mother share price will is RM 1.360(if use RM3.40 calculated la)