QUOTE(jonchai @ Feb 21 2014, 10:17 AM)
KTL give tipsy mah already this morning... Bursa Traders V3
Bursa Traders V3
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Feb 21 2014, 10:18 AM
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#81
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Feb 21 2014, 10:21 AM
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#82
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QUOTE(dewVP @ Feb 21 2014, 10:18 AM) If price now RM5. The day before ex div RM8. Ex div price it will fall below RM2.5. With bonus split 1:1, u will lose out right? Big boss can explain to me with figures why won't lose? If the day before ex is RM 8 with 1:1 bonus then each share is worth RM 4. If now is RM 5 either the company continue to progress well OR speculation is going on. I keep thinking if the price don't increase drastically before bonus split. When split, price drop lower u will lose. It does not matter, if the company is good the price will go up sooner or later, if not it will come down. |
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Feb 21 2014, 10:34 AM
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#83
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Feb 21 2014, 10:47 AM
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#84
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QUOTE(dewVP @ Feb 21 2014, 10:44 AM) Right. Because if the bonus issue is 1:1, the price must increase above 100% (assuming the price drop 100% ex price) and u got 100% more share. Then the effect will be 0. No no... you got it wrong. Bonus issue does not affect the share price. It is the investors who affect the share price. There is no precedence when announce bonus issue the share price must double.But if ur share increase 20%. U lose out 80%. Better don't split the share right. No guarantee bonus issue (increase liquidity) will attract more new investors right? Any stock u come across where after bonus split it loses a lot of money for existing shareholder? It just half the EPS and you get twice as much shares, the TOTAL value of your shares is no different from before the bonus issue. Lets say a company got 100 million shares and earn 10 million per year. So the EPS is RM 0.1/share. Current share price is RM 1, which represents PE of 10x. Lets say it announce bonus issue of 1:1 After ex bonus issue, the company now got 200 million shares, and STILL earn 10 million per year. Now the EPS is RM 0.05 a share. How much should each share worth? This post has been edited by gark: Feb 21 2014, 10:52 AM |
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Feb 21 2014, 12:08 PM
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#85
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Feb 21 2014, 01:04 PM
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#86
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Feb 21 2014, 01:33 PM
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#87
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queue small amount 9059 @ RM3 see can get or not..
Caution : Put in freezer one. Not expecting good gain anytime soon... This post has been edited by gark: Feb 21 2014, 01:39 PM |
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Feb 21 2014, 01:37 PM
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#88
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Feb 21 2014, 02:09 PM
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#89
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QUOTE(dewVP @ Feb 21 2014, 02:07 PM) Okay. I got what u mean now. If so easy to double wealth.. i also want. So even after bonus share have been issued, there shouldn't be any price adjustment at all? If the answer is yes, my wealth would just have doubled. Because I got extra 100% share. After ex, the price will be halved from last price on ex date. unfortunately in reality you don't get free lunch... |
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Feb 21 2014, 02:09 PM
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#90
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Feb 21 2014, 02:10 PM
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#91
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Feb 21 2014, 04:41 PM
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#92
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QUOTE(dewVP @ Feb 21 2014, 03:40 PM) Yup. That is why if during ex price if it fail to rise above 100%. When it halved, u will lose out. U have 100% more share but your share price is below 100% of your original cost The price is half and you have 2x as miuch share... why did you lose out?Share Price RM 1 x 1000 shares = RM 1000 Bonus issue 1:1, the share price is halved but number of shares double Now share price RM 0.5 x 2000 shares = RM 1000 How did you end up lose money? This post has been edited by gark: Feb 21 2014, 04:41 PM |
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Feb 21 2014, 04:44 PM
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#93
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Feb 21 2014, 04:45 PM
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#94
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6459.. going nuts...
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Feb 21 2014, 04:48 PM
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#95
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Aiyor.. 9059 ter-match...
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Feb 21 2014, 04:54 PM
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#96
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Feb 21 2014, 04:56 PM
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#97
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Feb 21 2014, 05:00 PM
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#98
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QUOTE(dewVP @ Feb 21 2014, 04:57 PM) yes ideal situation. I give up.. donno wat to say to you anymore... you are giving all kind of probability whether can or cannot happen one. On one hand share price rise before Bi the other hand share price drop after BI. All these are fantasy scenarios.scenario: u buy at 1.1. u hold 1000 share. cost is RM1,100. bonus issue 1:1 share price increase to 1.50. market value now is RM1,500. after bonus issue. u got 2000 share. share price drop 50% (75 cent) now your investment is worth RM0.75 x 2000 shares = RM1,500. question: yes. u are right. bonus issue does not affect share price. people determine share price. but wouldn't it better sometimes that don't want bonus issue. then maybe your share price will be higher? No, wait. U won't know.. Because bonus issue happen. So u won't know what's the situation if dont have bonus issue. but what if bonus issue, but the price remain unchanged. meaning buy 1.1. 1000 share. cost is RM1,100. bonus issue 1:1 share price now is RM1.15 only. rise 5 cent. after bonus issue u got 2000 units. IF SHARE PRICE DROP MORE THAN HALF? RM0.5 (for example) x 2000 units = RM1,000. u lose RM100 in the end.. ideally it should drop half right? but like u said, market determine the share price. Never ending story... do whatever you think will bring you the best profit. Good luck! This post has been edited by gark: Feb 21 2014, 05:05 PM |
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Feb 21 2014, 05:08 PM
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#99
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Feb 21 2014, 05:09 PM
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#100
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QUOTE(Pink Spider @ Feb 21 2014, 05:04 PM) Nevermind lah people want to learn, we help teach loh. But if still cannot learn even giving detail explanation, then cannot help liao. This post has been edited by gark: Feb 21 2014, 05:10 PM |
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