Affect? The Ordinary Share price will be adjust during issue of ICULS depending on the conversion price/ ratio etc, only minimal impact during maturity, because normally most of the ICULS already converted into ordinary share before matured.

When ICULS being converted into mothershare, it means more mothershare now, and potential diluted the EPS in great way, if the ICULS number is big, and ratio of conversion is low.
More mothershare could mean more selling pressure, but generally this is minimal impact, as if someone could hold ICULS for years, there is no urgency for them to sell either.

Lower EPS, not something good news to the stock price in general.

just want to know what's ur view on company buy back their own shares? i know it will increase the value of our stocks holding but any other disadvantage/advantage from this practices?

Can any sifu recommend technic of average down of ABP?
Eg firstly buy 1 or 2 unit /lot, then come price drop, after how many % drop and buy again. How many lot need to buy to cover first time lost? If further drop what's the strategic /ideal .Mind to share
Thank in advance

Super newbie here, Ok guys I've followed KLSE instructions to create an account at i*trade@CIMB. Next, how to engage a license dealer or remisier ? Ok, once I sign the form I'll be charged for using the service for RM X for how long duration what else ?

Also, for i*trade@CIMB users. The login shows Trading Hall, Cross Border Trading and eIPO. Which one is for buy/sell for only one stock ? I guess eIPO is for IPO stocks via electronic.

The trading part, I know the min amount for trading is RM 1,000. If below, the amount some fees will be charged right ? ( Pls correct & enlighten me about the trading fees part )
The stock I want to buy is Taliworks current price at RM 1.30

So, 1 stock is RM 1.30 rite ? 1 lot = 100 shares = RM 1.30 x 100 = RM 130. And what kind of charges include ?

I'm pretty sure many of yr guys will be asking XYZ questions.....

If you registered an online account, it means you bypassed the remisier services which is normally engaged via phone. Online accounts without broker assisted transactions are normally cheaper in term transaction charges because the commissions are very low due to lack of broker/remisier assistance.

You really need to go through CIMB platform guide to get to know your trading platform.

All transactions have charges no matter how low. Normally there is the minimum charge either in % or RM depending which is higher. On top of that you have the stamping and clearing fees.

Talisworks RM1.30

If you buy only 1 lot or 100 shares;

Share price x 100 = RM130
Stamping (RM1 for every RM1k) = RM1
Brokerage charges = RM130 * % or RMxx (flat rate) whichever is higher


Normally people will advise against buying such a low amount as the brokerage charges are quite high, and because of that to break-even it takes some amount of share price appreciation to make a profit.

For instance if the minimum Brokerage is 0.4% or RM28 which ever is higher.

Share price * 1 lot (100 shares) = RM130
Brokerage = RM28 (which is higher)
Stamping = RM1

Your total cost for buying the share = RM159

Which translates to RM1.59 per share. So in other words, your share price needs to appreciate 29 sens or 22% before you start making a profit. And don't forget when you sell your share, you have to pay the brokerage, stamp and clearing fees as well.


But if you buy 10 lots or 1000 shares

Share price RM1.30 * 10 lots = RM1300
Brokerage = RM28
Stamping = RM2 (RM1 for every RM1k worth of transaction)

Total cost = RM1330 or RM1.33 per share


Another example for 100 lots

Total share price = RM13000
Brokerage = RM52 (0.4% is higher than the minimum RM28)
Stamping = RM 13

Total cost = RM13065 or RM1.31 per share (rounded figure).


So in other words, don't buy such in low volumes where the cost of transaction impedes your ability to make profit.

And remember that when you sell your shares, the same calculation for the charges applies.

This post has been edited by skiddtrader: Sep 11 2010, 01:28 AM

One of the technique I've came across is 1-2-3-4. Its useful for counters that had been whacked down severely for unjustified reasons, such as like notion and jcy...

It basically means

- start off with 10% of your capital
- top up another 20% if the price drops 10-15%
- hantam further with another 30% if the drop persist by another 10-15%
- finish it off with 40% of your allocated capital for this counter drop another 10-15%
- wait for the egg to hatch

Your investment into this counter should be quite safe as you've placed high weighting on the price which had dropped 50%...
If it starts to fly say after 1st 1-2 step, so be it... there's always other counter which you can trade... don't cry over spill milk

Mind you, apply this only on fundamentally sound counters. If you apply this on sick diseased counters like gpacket, kenmark, then prepare to R.I.P. You in for a very very looooooooong term investment...

Thank for info and sharing, will try to use.
Later if i success i post to share.

1. No, BI has no material effect overall, just accounting and number of shares increased only. While cash dividend is going up which will reduce the NTA or NAV

2. No, has nothing to do with both. Company doesn't need to pay a single cent in the BI, just accounting issue only.

3. You need to have basic understanding of 3 main account. P&L, Balance Sheet, Cashflow.

4. IPO time, it is the original shareholders selling their share to the public. If the shares is not sold out, it may remain in the hand of the major/origin shareholders.
The number of shares is fixed in the first place. It is not created during IPO.
But in general practice, there are underwriters, normally investment banks that will take up the unsubscribed shares.

Thanks a lot Cherroy!

Then what's the difference between BI and share split? I always thought the company need to "pay something" for BI therefore BI is more valuable than share split.

BI = Paid up capital increased which come from retained profit (a paper work), par value remains the same.

Share split = Par value stripped into half, and shares become more.

But one thing same is that both doesn't affect any company fundamental issue, company doesn't need any cash/spend (except secretarial fee to carry out accounting practice ),
nothing material effect is changed.

Got BI/share split or not doesn't affect the value of your shareholding.

So in this case, what makes the market (investors) prefer BI to share split? In Chinese, when a company offer BI, the word to use is "a gift".

I think the key word here is what is paid-up capital. I am trying to read from the web and see what exactly it is.

Thank you!


This post has been edited by yok70: Sep 13 2010, 06:54 PM

just wanna ask about opening HLebank account. Am i able to open this account in any Hong Leong bank?btw im in penang

wish to know more about HL eBroking too. Any sifu can advise?
Thanks..

I am not a sifu, but can advise! lol

You just need to go to the Hong Leong Bank in Burmah road, that's what I did 4 months ago~

Lol, must be a HL saving/current account user to apply for ebroking account?

sry noob question:-

50 sen per RM1.00 ordinary share, less tax and
4 sen per RM1.00 ordinary share, tax exempt

share-per-value:1.00

share price in market now : RM4.0

how much will i get?

This post has been edited by dannychc: Oct 13 2010, 04:07 PM

Can anyone please explain to me the announcements made below? Thank you.

1) "Share split involving the subdivision of every existing one (1) ordinary share of RM1.00 each in the company (Share(s)) into two (2) ordinary shares of RM0.50 each in the Company (Subdivided Shares) held by the entitled shareholders of the Company (Share Split); Bonus issue of up to 21,728,250 new subdivided Shares (Bonus Shares), to be credited as fully paid-up by the company, on the basis of one (1) Bonus Share for every four (4) Subdivided Shares held by the entitled shareholders of the Company (Bonus Issue); (collectively Proposals). On behalf of the Company, AmInvestment Bank Berhad (a member of AmInvestment Bank Group) wishes to announce that as a result of the Share Split, 43,337,900 ordinary shares of RM1.00 each in Tomypak will be subdivided into 86,675,800 new ordinary shares of RM0.50 each (Subdivided Shares) after 5.00 p.m. today. Subsequently, as a result of the Bonus Issue, 21,668,950 Bonus Shares will be issued to entitled shareholders after 5.00 p.m. today. The Subdivided Shares and Bonus Shares will be listed and quoted on the Main Market of Bursa Malaysia Securities Berhad with effect from 9.00 a.m. on 6 September 2010."

2) "Interim Single Tier Dividend 3%

Entitlement Details:

Entitlement Type: Interim Dividend
Entitlement Date and Time: 03/11/2010 05:00 PM
Year Ending/Period Ending/Ended Date: 31/03/2011
EX Date: 01/11/2010
Payment Date: 18/11/2010
Stock Par Value:"

How do you calculate the dividend you would gain for announcement (2)? Assuming the par value as 1. And would this dividend affects the opening price of the stock on 1/11/2010? Would the opening price be set to a decrement of 3%? Please advise. Thank you.

This post has been edited by t5t: Nov 1 2010, 06:06 AM

if 1000 share, then
50c*1000*0.75=375
4c*1000=40
total = 415.
tax can claim back if you are not paying the top tax bracket.

---

Added on November 1, 2010, 6:47 ambased on par value of 50c, then 1.5c/share single tier.

This post has been edited by htt: Nov 1 2010, 06:47 AM

[quote=htt,Nov 1 2010, 06:44 AM]
if 1000 share, then
50c*1000*0.75=375
4c*1000=40
total = 415.
tax can claim back if you are not paying the top tax bracket.

Hmm... Where do you get the 0.75 from? What does top tax bracket mean? And how does a person claim the tax back? Thank you.