Hi Everyone,

HAI-O is planning bonus issue and then share split, share price is approximately RM10.

If I buy 10 lots (10,000 units):
10,000X RM10=RM100,000

After bonus issue (1:5), I get:
10,000/5=2000 (bonus units)
Total units is 12,000

After share split (2:1), I get:
12,000 X 2 = 24,000

What is the estimated share price for HAI-O after the bonus and share split?
I don't think it's going around RM10, is there a way to calculate the new price?

If the share price maintains at RM10 prior to split and bonus issue;

RM100000/12000 shares = RM8.33 per share

RM8.33 / 2 = RM4.16 per share (estimated price)

Thanks for the info...

is bonus issue same like dividend, just that bonus issue is not paid with hard cash?

No it is completely different. Technically, bonus issue is just a term they use to issue more shares and diluting the EPS without any gain. A lot of people read "bonus" and thinks they are getting something extra and buy more shares, but it is the same like share split without dividing the par value.

For example, a company has 100 shares and gives out a 2 for 1 bonus share. Meaning the total amount of shares from 100 will increase to 300, because for every 1 share the company gives 2 more.

But the earnings per share is the same, so meaning a RM1000 profit will be shared among 300 shares instead of 100 shares. If you own 1 share and get RM10 for every shares, you're still going to get RM10 for every 3 shares you own after the bonus issue. There is no difference.

If the share in the market is RM6, after bonus it will become RM2.

A lot of people think bonus issue is free money but in actual fact there is no change. Bonus shares is more for creating more shares to for future share exercises like rights issue, share splits etc. Also bonus share can reduce the entry price for some shares, allowing more people to buy the share.

Cash dividend and share dividend however is the actual way of paying your investors as a reward, one with cash and the other with more share. Cash dividends let you decide what to do with the money, share dividend they re-invest the money back to their share.

Further to this example,
when KLK declares a Interim dividend 10sen Single Tier..

does it mean my divvy cheque will be nett 10sen and not 10sen-tax ? plz enlighten..

so in another way i can treat SingleTier and TaxExempt dividends the same ? as in the amount they declare is the amount we get, no need to consider anymore taxes.
(i'm aware that in actual fact they are totally different things)

This post has been edited by mopster: Mar 22 2010, 01:22 PM

Single tier = tax exempted dividend.

may i know what is gn3 & pn17 companies ?
thanks.

GN 3 and PN 17 has the same criteria and requirements (further details can be found on bursa website under listing requirements)

Only difference is GN 3 is for Ace Market counters and PN 17 for main market.

Most common reasons why companies are labeled GN 3 or PN 17 becoz they are unable (for whatever reason) to pay their debt.

not sure if someone posted, but i could not find,

the brokerage fees is per contract would means?? when I buy, I get charged (1 contract) and when i sell , I get charge also??

total = 2 contract??

-sorrie, posted wrongly -

This post has been edited by leongal: Apr 13 2010, 04:35 PM

Actually should be brokerage charge per transaction. When you Buy and Sell 3 different kind of shares the same day, you get charged for all 3 Buy as well as Sell transactions.

hi...i have 1 problems

i have bought DBE for 0.20 @30000 share and my remiser sold it all at 0.25.the problemm is there is some miscomunicstion and i have sold additional 18000 share @ 0.27at the end of trading session . do I have to pay the penalty and if so how much . Or it is brokerage system fault that allow oversold situation like that .TQ. Sifu i urgently need someone help to explain it

If you over sold, then you are considered short selling which is illegal. You have to cover back those extra that you sold and I believe there is some sort of fine for it. Your remisier should have more details for it and you should contact him/her on what you should do.

This post has been edited by skiddtrader: Apr 14 2010, 05:16 PM

thanks..

he told me something about lets hope dbe stocks drop at T + 2 . 5 cent fine will be added @ T + 2 to each share oversold. then they will deduct it with 0.25. i will have to pay the difference. so in short , lets hope dbe drop more cm. hmmh...hmmm

Any short-sell stock, at T+2, remisier or investment house will do "buying-in" on that day afternoon, which is 10 tick above the market close price of T+1. The share will be delivered immediately under 'buying in' order.
In ordinary transaction, share actually only being transfer after T+2.

So it means for above case, 5 cents will be added.

hey guys..

i got some shares on SUCCESS, and they are giving restricted offer of 1 SEB share of 15 at the price on RM0.85

so let say i have 2000 unit of success, then i will be given 2000/15 = 133 unit of SEB to purchase at RM0.85.

but there is another counter that pops up in my portfolio as SUCCESS-OS with 133 unit at RM0.005.

so what does the OS does?

The OS is the right, aka the form/right you are entitled to purchase SEB at 0.85.

Which OS is a platform you can sell off your right if you don't want to subscribe the SEB.
It will be traded around 2 week time only, then the OS is ceased.

When this is included in a company's description, how do I decipher it?

What do you mean by that?

A lot of company actually has mixed bag of business and investment.