Better write in English as this is an English Forum. After kena moderated.

Sidelines meaning spectators.

Like football the field is where the players are and the sidelines outwards is where the spectators are.

So being sideline means staying out of the field and watching the game.

But volume is still low.

More suckers?

They just need the cash from the IPO.

Hmm loan stocks are kinda like rights but can is treated more like bonds. Loan stocks are structured more like a loan from investors to the company. Like giving him loan and he pays you 8% per year based on nominal value of the loan stocks.

I'll try to answer but I'm no sifu in this.

1) 10 years is the term of the loan stock. How long it will last before it expires. Something like them taking a 10 year loan from you and will pay you interest every year until you convert the loan stock into share.

2) Yes, it can be traded in market under E&O-LA ticker. Prices is based on conversion ratio and mother-share price and some premium/discounts.

3) I have no idea if the 8% is taxable. But as far as I know, any interest is taxable under Malaysian tax laws. Including interest on your savings account if it exceeds certain amount.

4) Normally your broker will call you or send you a letter for applying the shares. Better if you call them instead and initiate them rather than waiting. I'm not sure how nominee account works but remisier/broker will normally call their clients personally regarding the issue.


Regarding your understanding.

1) That is not exactly right. The issue price has not been announced yet. Meaning they are not going to sell you shares at RM0.65 and pay you 8% interest when they can do that with a rights issue without paying interest. So most likely they will charge you more for the 65 sen shares, mainly because they will pay you interest for it and treat it as a loan.

Correct me if I'm wrong. Cause I'm not too sure myself.

This post has been edited by skiddtrader: Sep 10 2009, 10:24 PM