Been following SP Setia quite closely. My takes are:
1. Consulted an industry expert which says they know what the market wants and caters for that demand.
2. They have strong growth prospects and plan to have record revenues in 2011.
3. Strong past performance, Setia Eco Park was over-subscribed.
4. Looks in pole position to get the RM10b development project under the Economic Transformation Program in Sungai Buloh.
5. Risks - is there still strong demand for property in the Malaysia after 2010 ?

i sold all in my hands liau.. do i need to tell u what i bought? u sound so pro? i already said i'm newbie?
u seems play margin kia.. what contra i not sure?? noob here.. did u buy GUOCO? heong leong bank fren.. paiseh my eng suck.. u geng.. pui!!
i got news.. sell b4 wednesday.. dun greedy..

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Added on January 17, 2011, 8:01 pmthey demand is plenty.. worried makan $ only.. they will still on demand but it will slightly decrease next year.. early half years becareful..

This post has been edited by ngkhanmein: Jan 17 2011, 08:01 PM

Just announced bonus issue 1:2. Rally tmr?

This post has been edited by free_enuf: Jan 17 2011, 10:33 PM

but i think the share may go down after a few days due to private placement exercise. Just like the Hap Seng

dare? go in low.. later 7..

The drop is not as severe. Chance is good that it will rebound.

y it dropped so much today? any news?

Gotta be the proposed of Bonus issue of 1 share for every 2 shares held:

Type
:
Announcement
Subject
:

S P SETIA BERHAD (“S P SETIA” OR THE “COMPANY”)

(I) PROPOSED PLACEMENT OF NEW ORDINARY SHARES OF RM0.75 EACH IN S P SETIA (“S P SETIA SHARES”), REPRESENTING UP TO 15% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF THE COMPANY (“PROPOSED PLACEMENT”);

(II) PROPOSED BONUS ISSUE OF NEW S P SETIA SHARES (“BONUS SHARES”) ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY TWO (2) S P SETIA SHARES HELD AFTER THE PROPOSED PLACEMENT (“PROPOSED BONUS ISSUE”); AND

(III) PROPOSED INCREASE IN THE AUTHORISED SHARE CAPITAL OF S P SETIA FROM RM1,200,000,000 COMPRISING 1,600,000,000 S P SETIA SHARES TO RM2,250,000,000 COMPRISING 3,000,000,000 S P SETIA SHARES (“PROPOSED CAPITAL INCREASE”)

(COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)

Contents
:

On behalf of the Board of Directors of S P Setia, CIMB Investment Bank Berhad wishes to announce that the Company proposes to implement the Proposals.

The details of the Proposals are set out in the attachment below.


This announcement is dated 17 January 2011.

Thanks for the info...I'm quite new in this share thing...hope to learn more from u all....
Will it bounce back? and at what price should i go in?

no problem.

Rebounding is a matter of time, but do exercise cautious as the KLCI index is indeed in a very high position. No one knows what is the right price to go in as the market reacts base on news that related to the stock. As for SP Setia, project contracts are those that will really drives up it shares.

Foreign fund is also another factor that is important in the direction of the market. When more foreign funds is being poured in, stocks will go up (prior to 1997 crisis), and when foreign funds is being pulled back, the stocks will plunge due to supply of shares more than demand where people will do a lot of panic selling, trying to hold on to cold hard cash when the market is uncertain.

If you'd ask me, what is the right price to enter, honestly I do not know. But do ask yourself, you plan to make quick bucks (as a contra player), looking for capital appreciation over a period of time or going in for dividend play (long term)? Rule of thumb, always invest within your mean, and do not rush in buying stocks as the timing is very important.

Downgraded because of the private placement. Didn't they just get a plot of prime land in Jalan Bangsar?

Just wondering, why would a bonus issue and private placement drag the share price down? Is that because private placement is normally done at certain discount of the market price?

For SP Setia, what will happen to the -WB after the bonus issue of the mother shares? Does the WB get the bonus issues as well?

A bonus issue will increase the supply of shares. More supply, lower prices. Hope that clears the air.

I agree that the price will be adjusted (lower) upon the bonus issues. But why now?

I thought bonus issue is akin to dividends. Before and after the bonus issue, the total investment and return should stay the same (theoretically).

Say a stock trades at RM1.20 and it pays out RM0.20 as dividend. On Ex-date, the share price should adjust to RM1.00.

Similarly, say a stock trades at RM2.00 and it gives 1 bonus share for 1 existing share held. On Ex-date, the share price should adjust to RM1.00. Since you now get 2 shares, the total value will still be the same prior to the exercise.

Private placement is different. New money will be injected and the issue price is usually at a discount to the market price. Our shareholdings as well as the earnings will be diluted. In the short-term, it's not good for existing shareholders.

I'm actually quite confused also. The money is for expansion. They have so many projects in the pipeline. All the good factors should outweigh the pressure arising from the private placement, right? Why the heck some research houses already downgraded the stock simply because the earnings will be diluted?

This post has been edited by iamsobloodysick: Jan 18 2011, 12:57 PM

@T816B

The price drop is not so much due to the bonus issue imo. It's the placement of new shares. Even if it's a pure bonus issue exercise, the price won't adjust until ex-date, right?

I pasted the news article by Bloomberg on the downgrades by ECM and RHB. You may refer to my earlier post. ^

This post has been edited by iamsobloodysick: Jan 18 2011, 01:14 PM

Thanks.

Let's wait and see if this counter can rebound in the next few days.

imho, it is because the bonus issue is as a result of private placement, meaning it will dilute the EPS of the current shareholders.

Anyone has updated papers from OSK or CIMB etc, please share it here. Thanks!

This post has been edited by yok70: Jan 18 2011, 05:26 PM