May 13 2019, 04:09 PM
QUOTE(cherroy @ May 13 2019, 03:53 PM)
Bank stock is not foolproof.
There were banks that facing severe problem during downturn due to increase of NLP, which needs to be bail out or seek for financial assistance that may dilute existing shareholder.
It may not be delisted easily, but it doesn't mean share price won't plunge.
Best eg. would be US famous bank C that before financial crisis, its share price was around USD50, now after the crisis with economy fully recover and even with DJ shooting all time high (with reverse split 10:1), now share price is around USD 68.
Normalise the reverse split mean before crisis USD 500 --> USD68 now.
Hi cherroy, may I have your opinion for the following:-There were banks that facing severe problem during downturn due to increase of NLP, which needs to be bail out or seek for financial assistance that may dilute existing shareholder.
It may not be delisted easily, but it doesn't mean share price won't plunge.
Best eg. would be US famous bank C that before financial crisis, its share price was around USD50, now after the crisis with economy fully recover and even with DJ shooting all time high (with reverse split 10:1), now share price is around USD 68.
Normalise the reverse split mean before crisis USD 500 --> USD68 now.
I've some capital, say RM500K which is allocated for fixed deposit/saving. I'm currently putting them in my Maybank Private Banking a/c with annual interest of 2.3% (most updated one), computed on a daily basis. The another option would be putting them in FD, for 1-month tenure, FD rate about 2.95% in Maybank. However, I will use the funds to apply for IPO (new shares) whenever there's. Keeping them in private banking a/c allowing me to enjoy the daily interest without any tenure like the FD. If I were to put them in FD, I might need to withdraw to apply for the IPO, before the FD matures (interest will be forfeited).
And I was also thinking, since I've allocate this portion as my saving/FD, should I just keep them in FD and keep them untouched? As I've already allocated a portion to equities (in my brokerage a/c).
Appreciate your views! Thanks!
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