Anyone know why SPSETIA up but SPSETIA-WB drop? Not a good news?


KUALA LUMPUR: OSK Research said consistent with the general weakness in the stock market of late, SP Setia has been under heavy selling pressure, having fallen 10.7% from the peak of RM6.93 in two weeks.

The research house said on Thursday, Jan 27 as a result, SPSETIA-WB is now trading at a discount of 14 sen relative to its mother share, SP Setia.

“Hence, we believe there could be an arbitrage opportunity for the current shareholders of SP Setia. As an illustration, assuming that an existing shareholder now takes profit on the shares of SP Setia at a price of RM6.26, buys SPSETIA-WB at RM1.64 and then exercises the warrants at a conversion price of RM4.48, he/she will pocket a gross 14 sen, or 2.3% arbitrage gain.

“That notwithstanding, we maintain our BUY call on SP Setia with a price target of RM7.23 (cum), based on 3.1x CY11 P/NTA, the peak valuation it achieved in 2007,” it said.

http://www.theedgemalaysia.com/business/18...a-tp-rm723.html

Hi, I'm new to this forum. Just an opinion, based on my observation for short-term Warrant and MotherS not necessarily goes to the same direction. Mom may come up and son may down. There is few causes to this act which I think based on TA, Sentiment and News also FA.

Ok, as discuss above.. just for information Setia-WB will definitely got an adjustment. Just like Setia-CD ( UNIT X 1.5 ). For the exercise price will also adjusted from 4.48 to something which I think should be 4.48/1.5. Based on the strong order and FA of Setia.. It won't be so crucial to come out from the market unless your trading plan is saying so.

Happy Trading Guys :-)

Bonus Issue for SP SETIA ? Good or bad ?

=====
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”)

All I know is bonus is always welcome...

EPS dilution for higher growth expansion. So, is it good? It's good for mid to long term, it's bad for short term. That's why the selling down lately. Read this OSK paper and judge your own. They recommend to buy the WB warrant instead of the mother share. In today's closing, if you buy the WB warrant and immediately exercise it to the mother share, you already gain 3.27%.


Attached File(s)
 SPSetia_An_Arbitrage_Opportunity_20110127_OSK.pdf ( 36.32k ) Number of downloads: 39

Thanks for the sharing. My ABP for SPSETIA is 4.21. So maybe I will hold on to it for a bit longer

This post has been edited by whizzer: Jan 29 2011, 01:03 AM

SP Setia remains a 'sell', says ECM

URL: http://www.btimes.com.my/Current_News/BTIM...icle/index_html

Sorry, what do you mean by immediately exercise it to the mothershare? Can it be done?
I thought it can only be done at the exercise date?

There is such a huge disparity between the analyses of different broker houses, that I don't know which one to trust.

Trust yourself

Good advice..

You can exercise it anytime before the expiry date. Please correct me if I am wrong.

---

Added on February 1, 2011, 6:43 pmYeah, huge difference. On the other hand, it's the sector top pick by OSK and CIMB.
Another good example is Tchong. While OSK, CIMB, RHB rated it as sector top pick, Maybank asked you to sell it and buy proton and MBMR (support national car?!). Judge your own.

This post has been edited by yok70: Feb 1 2011, 06:44 PM

any budy know went the cum date end for SPSETIA???

This post has been edited by nodoube: Feb 17 2011, 06:17 PM

8664 SPSETIA SP SETIA BHD
Bonus Issue 1 : 2

Entitlement Details:
Bonus issue of up to 665,059,057 new ordinary shares of RM0.75 each in S P
Setia Berhad (S P Setia) (S P Setia Share(s)), to be credited as fully paid-up,
on the basis of one (1) new S P Setia Share (Bonus Share) for every two (2)
existing S P Setia Shares held by the entitled shareholders of S P Setia as at
5.00 p.m. on 21 April 2011 (Entitlement Date) (Bonus Issue)


Entitlement Type: Bonus Issue
Entitlement Date and Time: 21/04/2011 05:00 PM
Year Ending/Period Ending/Ended Date:
EX Date: 19/04/2011

means what huh?

buy 2 free 1? if already bought few days ago still can get?

Can. Ex-date is 19-4-11

alright thanks for the info. I think i will hold it, consider this is a huge bonus for long term investment.

---

Added on April 9, 2011, 2:11 pmbtw, consider their high rise in revenue and future planning. This is a good buy.

This post has been edited by hz428: Apr 9 2011, 02:11 PM

Need some help here and saw the below annoucement on SPSetia-WB in Bursa Malaysia website on the 11/04/2011

I'm currently holding some SPSetia-WB warrants i.e 40 lots therefore, I'm wondering whether I'm entitled for the Bonus Share? Is it worth to hold these warrants after the allotment? Thks.


Subject : SPSETIA-WB - NOTICE OF BONUS ENTITLEMENT


Contents : Adjustments to the exercise price and number of outstanding S P Setia warrants (“Warrants”) in accordance with the provisions of the deed poll dated 19 November 2007 (“Deed Poll”) as a consequence of the bonus issue of up to 665,059,057 new ordinary shares of RM0.75 each in S P Setia Berhad (“S P Setia”) (“S P Setia Share(s)”) (“Bonus Share”), to be credited as fully paid-up, on the basis of one (1) Bonus Share for every two (2) existing S P Setia Shares held as at 5.00 p.m. on 21 April 2011 (“Entitlement Date”) (“Bonus Issue”) (“Adjustments”).

Kindly be advised of the following :

1) The above Company's securities will be traded and quoted [ "Ex - Adjustment" ]
as from : [ 19 April 2011 ]

2) The last date of lodgement : [ 21 April 2011 ]

3) Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned :-

a) Selling Broker to deduct [ 1/3 ] , of the Selling Price against the Selling Client.

b) Buying Broker to deduct [ 33.33% ] of the Purchase Price against the Buying Client.

c) Between Broker and Broker, the deduction of [ 1/3 ] of the Transacted Price is applicable.

Remarks : "Bursa Malaysia Securities Bhd would like to clarify that on the basis of settlement taking place on 22 April 2011 with bonus issue of SPSETIA-WB shares each, any shareholder who is entitled to receive SPSETIA-WB bonus issue shares, may sell any or all of his SPSETIA-WB shares arising from the bonus issue beginning the Ex-Date (19 April 2011).
For example, if Mr X purchases 200 SPSETIA-WB shares on cum basis on 18 April 2011, Mr X should receive 200 shares on 21 April 2011. As a result of the bonus issue, a total of 300 SPSETIA-WB shares will be credited into Mr X's CDS account on the night of 21 April 2011 being the Book Closing Date. Therefore, Mr X can sell the bonus issue shares of 300 on or after the Ex-Date ie from 19 April 2011 onwards."

Pursuant to the provisions of the Deed Poll, the Bonus Issue will give rise to the Adjustments.

Based on the number of outstanding Warrants as at 6 April 2011, up to 78,315,448 additional new Warrants pursuant to the Adjustments (“Consequential Warrant(s)”) will be allotted and issued on 21 April 2011 on the basis of one (1) Consequential Warrant for every two (2) existing Warrants held by the entitled Warrant holders of S P Setia, whose names appear in the Record of Depositors for Warrant holders of S P Setia at 5.00 p.m. on the Entitlement Date. Any adjustments arising from the allotment of Consequential Warrants to each Warrant holder of S P Setia will be rounded down to the nearest one (1) whole Warrant, pursuant to the provisions of the Deed Poll.

The Adjustments will take effect on 22 April 2011, being the next market day immediately following the Entitlement Date in accordance with the provisions of the Deed Poll (“Effective Date”).

The listing of and quotation for the Consequential Warrants to be issued on the Main Market of Bursa Malaysia Securities Berhad will be on 22 April 2011.

The notice to the entitled Warrant holders of S P Setia setting out the Adjustments will be despatched to the entitled Warrant holders of S P Setia within twenty one (21) days from the Effective Date.

It simply means that you will be entitled bonus issue for ur your current holding warrant.
Based on bonus ratio=> 1:2,
Will you get an additional of 20 lots of warrants as bonus issue.
The Ex-date is 19 April 2011.
Hence, u can sell these additional 20 lots on 19th of April 2011.

Hope that u can understand.

Keep dropping...but they claim this year sales will pecah record....time to go in?