I believe its because Temasek is selling off their mother share. Over 1 bil shares I believe. Mother shares also dropping like a rock since the news of Temaseks action.

This post has been edited by skiddtrader: Dec 4 2007, 01:14 PM

They are issuing warrants soon I think for their share that will dilute the holdings. Here is an excerpt from OSK:

RENOUNCEABLE RIGHTS ISSUE OF UP TO 151,800,000 NEW ORDINARY SHARES OF RM0.50 EACH (?RIGHTS SHARE(S)?) IN DPS RESOURCES BERHAD ("DPS") ON THE BASIS OF ONE (1) RIGHTS SHARE FOR EVERY ONE (1) EXISTING ORDINARY SHARE OF RM0.50 EACH HELD IN DPS TOGETHER WITH UP TO 75,900,000 FREE DETACHABLE WARRANTS (?WARRANT(S)?) ON THE BASIS OF ONE (1) FREE WARRANT FOR EVERY TWO (2) RIGHTS SHARES SUBSCRIBED (?RIGHTS ISSUE?)

So things aren't always what they seem on the surface, I've said this before, the market is quite efficient in compensating for all this. So try to dig deeper like you are doing now to get to the bottom of something you find amiss.

What it means is, they will be issuing new shares soon. The rights issue which is given or sold to their shareholders basically gives the person who hold the 'rights' to actually buy the new shares at a discounted price.

From the statement, it says they are issuing 150 mil new shares. Thats about 100% increase in total shares. So just imagine the EPS is a cake, instead of 10 people sharing it, it will be 20 people sharing the same cake once the shares are issued.

So thats why the price looks kind of attractive because people have already taken the new shares into account and aren't going to pay more for the counter because it wouldn't be worth it once the new shares hit the market. Thats what I meant by the market being efficient.

This post has been edited by skiddtrader: Dec 5 2007, 01:17 AM

Normally the company issuing new shares will try to entice the current shareholders and give them discount on buying the new shares. So maybe new shares will be priced at 50% or even 30% price of market value for the current shareholders. All depends on the agreed price in the statement of issue and differs from company to company.

But yes, the current shareholders do tend to lose out in my opinion.

I have no idea on the time-line or how nominee accounts work. I suggest you call your broker for more information about this and try to find the original press release of that statement in Bursa website which is more detailed.

Blue chip dividend stock. Very stable and not volatile.

Hmm I believe all those HK CWs are cash settled if the current value is above strike price.

NOT possible to have a serious discussion in this thread because the amount of posts in between which is un-related to the discussion will just drown the 'serious discussion'.

Only way to discuss strategies and debate on pros and cons of a counter is to start a new thread which will get lock by moderators because there is already a stock market related topic.... which they will then refer you to go to. But threads like this is useless or almost impossible to discuss properly. Although I do appreaciate moderators and staff like cheeroy and panasonic to help answer questions by people eager to learn the ropes, a few times have I've seen new posters looking for help simply ignored or their post lost in the sea of DJIA updates and KLCI updates.

Please support the Stock Market SUB-FORUM idea for better management of all stock market topics. Link is at my sig below.

Cheeroy,

Thanks for your input and support. But another thread would not improve the situation. In my opinion, stock market as a topic is too braod and general. Just like if you pin a thread discussing about "PC-GAMES", how would people interested in "DOOM 3" discuss properly without interruption from other posters interested in "Civilization IV"? They are both gamers talking about games but completely different topic altogether. Now if you try to realistically pin just one "PC games" thread and expect people to form serious discussions about games they love. You can imagine the mess it would be like seeing that there are thousands of games in the market with legions of fans.

Just like the current stock market thread at version 8 at the moment. How can anyone even try to attempt to discuss the generosity of TM dividends properly and the effect it would have on the market? Maybe there was an answer from someone that has already posted, but what about other posters who read that post 2 days later, maybe he has another opinion on it, should he just 'jam' in his opinions in between all the other non-related posts hoping interested people would actually read it and try to discuss and debate with him?

A sub-forum can have a pinned thread about learning to invest. It can have polls on what is the best HK-CW in the market. It can be divided by topic anyone can start about any counter in the market and draw interested posters to it. It can have a personal "Cheeroy's Monthly Pick" thread. It can have DJIA news update thread. It can even have a thread where tipsters and punters can change tips for all to see and use.

So to me, a sub-forum would be definitely a good upgrade from the current style of discussing stock market issues. But I have no idea what is the required man power LYN needs to spare for another sub-forum, so I leave that to the Admin and Staff. All I know is the what possibilities a stock market sub-forum can provide.

Cheers!

I'm not sure I understand how you intend to do it? Do you mean to open 10 different threads for all the different industries? Kind of confuse, please explain.

---

Added on December 12, 2007, 3:48 pmCheeroy,

Thanks for listening. Hopefully the sub-forum will get implemented. But if it does not, all I can do is ask and suggest. Final decisions is always the Admins. But it's nice to know fellow moderators and staff interested in stock markerts are willing to help out and support ideas. Like you, I hope this section of the forums becomes "the" place to discuss and debate about stock market since the infrastructure is already in place.





This post has been edited by skiddtrader: Dec 12 2007, 03:48 PM

Pana,

That is EXACTLY what I've been asking for in my suggestion thread. Maybe I was to confusing for people to understand or soemthing, but YES, that is EXACTLY what I'm asking for!!

HUAT HUAT!!!

Pana,

My england also not very good leh. kekeke.

Although it is nice to have several categories for each components of the KLCI, it would be too specific and does not encourage people to click on other categories to contribute. Let's say you separate into 'Plantations','Industrials' and 'Finance', and someone starts a topic about "strategy of diversifying your investment", where does it fall under? Starting categories for too many subjects would be quite hard to separate and induce interest at the same time.

I would suggest that if you must separate, select a wider range for example, "KLCI", "WARRANTS" or "DJIA".

For me, I rather just have a

Lowyat.NET -> Roundtable Discussions -> Finance, Business and Investment House -> Stock Market Discussion (sub-forum)

And inside you find a few pinned threads and the rest are just topics/threads started by posters themselves. Easier to manage rather than clicking every category, provides a general/overall view, and can see what others are talking about without going into another category. If anyone started another thread outside of this sub-forum, you can just move the topic into the stock market sub-forum for others to see and contribute.

Good example is the Property Sub-forum. A few pinned threads of FAQ, threads started are by specific topic related and everyone talks about the same topic in the thread. Other topics or discussions are in other threads. By entering the sub-forum, you can see what interest you and read/contribute the thread you are interested in.

It's simple, provides general overview, and generals discussions not categorised can also be seen by all.

Cheers.

Pana

That is too specific already. Too many category, people who don't know anythign about stock markets in the first place will get even more confused. Simplify or don't put any categories until needed.

This post has been edited by skiddtrader: Dec 12 2007, 05:47 PM

You bought AirAsia for contra? Meaning you wanted to do daily trade is it? I suggest going for warrants if you want more movement, because expecting AirAsia to move somewhat to a profitable level within a day is very unlikely.

For day trades, check for volume and volatility. AirAsia is more of a stable kind unless got some news on it so it's not a good stock to monitor on a daily basis, more like a weekly basis.

Ehhh I realised OSK foreign warrants tab is missing. Anyone else have the same problem?

EDIT: Ahh never mind, I just notice the announcement on main page.

This post has been edited by skiddtrader: Dec 13 2007, 01:02 PM

Hang Seng looks like -760 already - 2.63%

This post has been edited by skiddtrader: Dec 13 2007, 02:59 PM

GUYS GUESS WHAT!!


Many thanks for your support for the sub-forum idea. Many thanks to cheeroy and panasonic as well for chipping in ideas and support.

HAHA indeed, need to pay to more when we sell.

When the expiry reaches, yes your money goes poof.

So should we wait for the worst to come and then hop in?