Pohuat will give dividend 4% on 6 Jan 16, so Pohuat-WB will drop >4% on 6 Jan 16. Base on 4% of today Pohuat price 2.05 = 0.082. Let say Pohuat-WB price on 6 Jan 16 still 1.02, if Pohuat-WB price drop 0.082 after give dividend, mean Pohuat-WB just 1.02-0.082=0.938. Correct me if I am wrong.
Mother price will gap down the next day after give dividend. Son not entitle for dividend, so son will impact after mother price gap down but the conversion price still the same.
Thats call adjustment..and for several stock it wont adjust that much,for example today 2 sen div, it should be 2.03, but pohuat maybe will uptrend too..so dont simply said gap down,it is just an adjustment,every stock after issue div will did that
Pohuat is now a 50,sen par value share following recent share split. Hence 4% is equal to 2 sens. Ex div impact will be insignificant as it is already priced in.
USDMYR on upward trend to break 4.4000 next monday due to better than expected payroll date. Export oriented stock should have another record PNL next quarter. With the increase in global uncertainties and 4 more US interest rate hike, USD will still remain as the bullish currency in 2016. Poh huat will definitely benefit from the currency gains on top of the increase in sales. WIN WIN situation.
Gentlemen sorry to inform that there is a possibility of falling below RM1. The switch period proceeded too long. I will be locking below RM1. I hope I am wrong.
When I mentioned this was on the 10th of Jan and the deep drop happened on the 15th Jan Friday however preceding this it stayed between 1.03 to 1.06/1.07 which change the leverage of the uptrend channel higher actually. In my opinion leverage is at RM1 now as oppose to 0.985-0.995 If coming Monday it stays above RM1 it will be good sign. Other areas of consideration before buying is also CNY and Financial report. If it move north it will only be within this two weeks to be be safe and buffer Feb1st to 5th for tapering volume due to CNY. I am expecting things to pick up plus minus a week after CNY in positioning for financial results.
Pls use my opinion as a guideline, any changes differing from my expectation, has to be met with a change in strategy for traders however for investors will brace for the EPS performance expected for the coming results.
Because it is "free money" to directors. haha. They "print" money and still keep the shareholding for real free. You should know how to continue the story
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Posted by Ken Lim > 2015-11-26 11:07 | Report Abuse
We bought higher so no worry waiwai27 but final decision is yours