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 Q&A, General question on stock market

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cherroy
post Apr 20 2012, 12:19 AM

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QUOTE(welkiller @ Apr 19 2012, 11:38 PM)
sifu, just a noob question here, can we buy ipo warrants? or only can buy at the listing date?
*
Yes, you can.
For CW, buy through broker house.
For ordinary W, generally, it is issued by the listed company itself, and giving out the right to subscribe to the shareholders across.

cherroy
post Apr 20 2012, 11:07 AM

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QUOTE(welkiller @ Apr 20 2012, 07:22 AM)
Thank You, if i am using Maybank2u izit Maybank is my broker house? How should i do so? Call them  then ok dy? Can apply online?
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I am not familiar with M2U,

But those investment bank like OSK, Hwang, etc. just tell them/your remisier/broker that you want to buy those CWs (when there is new issue time/IPO), which normally come in 500 lot per tranche.
For W, you need to be existing shareholder or buy through the renouncable warrant right (if there is) to buy the W.

This post has been edited by cherroy: Apr 20 2012, 11:08 AM
cherroy
post Apr 22 2012, 09:42 AM

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QUOTE(XxAC3xX @ Apr 22 2012, 02:35 AM)
hello guys! i have just started learning, hope u guys could help me on my 2 questions below:
1. when im entitled to cash dividend, how will i receive the cash dividend? how do i claim them?

2. how do i know what is the method that they'll transfer the cash dividend to me?

Thanks in advance! smile.gif
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1. By cheque that sent through ordinary mail, or they directly bank into the account pre-registered with your CDS.
You do not need to claim them, company registrar will automatically do it. Just sit home and wait it arrived at your mailbox or into your account.

2. As posted 1, whether what company use what method, so far we can only know from existing shareholders experience. There is no list of which company is using ordinary mail to send the cheque or through Giro bank into account directly(e-dividend).
But more and more company is using and migrating to e-dividend method.
cherroy
post Apr 25 2012, 02:37 PM

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QUOTE(welkiller @ Apr 24 2012, 10:17 PM)
Hi any sifu can explain to me the recent right issue by TAMBUN? If i bought this share izit i just wait until 7th May then will get all the right share and warrant? or do not need to do anything to get it? Kindly advise http://announcements.bursamalaysia.com/EDM...5E?OpenDocument
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If you bought before 3 May, yes you are entitled for the right issue, (not share)
You don't own the share until you subscribe the right issue which cost Rm0.50 per share.
You do not own the share and free warrant until you subscribe it.

The right is renounceable means you can sell off the right if do not intend to pay for/subscribe the right at RM0.50.
It will be traded for the period stated and possible under the code name with behind -OR.
cherroy
post Apr 26 2012, 09:23 AM

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QUOTE(welkiller @ Apr 25 2012, 11:44 PM)
Thank You so much for your info. Which mean when i subscribe i need to pay RM0.50per share ar?
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Yes.
cherroy
post May 3 2012, 02:48 PM

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QUOTE(Sone Shin @ May 3 2012, 02:36 PM)
So each shareholder will able to purchase how many renounceable share? Any limit of share they can buy?
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Shareholder are pre-allocated how much the right share they entitled in the first place, which is proposed and approved prior before.

Renounceable just means, you can sell off the right, if one doesn't wish to subscribe the right shares.

There is not such thing of renounceable share., but renounceable right issue share.


cherroy
post May 14 2012, 03:37 PM

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QUOTE(bursalchemy @ May 14 2012, 10:16 AM)
Got some noob question here. If i registered a CDS a/c with HwangDBS, then i bought some IPO through CIMB online banking. If i want to dispose there shares off, can i use Hong Leong online portal to dispose off those shares? thanks
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NO.

CDS is attached to individual broker house, it is not cross linked-able (at least until now as far as I knew).
cherroy
post Jul 27 2012, 02:50 PM

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QUOTE(river.sand @ Jul 27 2012, 10:07 AM)
Here is a snapshot of BIMB's income statements. Can somebody please explain to me what are
- interest income
- interest expense
- non-interest income

Thanks for your guidance  smile.gif


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In general. For bank

Interest income - income generated through interest charged on bank loan given out.
Interest expense - interest paid to the depositor or whatever money borrowed by bank to give loan etc.

Non-interest income - those charges imposed on depositors account or whatever service provided. For eg. Annual free on credit card, charges on Card issued etc.
cherroy
post Jul 27 2012, 03:48 PM

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QUOTE(river.sand @ Jul 27 2012, 03:38 PM)
In BIMB's IS:
Are both 1st and 2nd items correspond to interest income?
Which item is non-interest income?
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Sorry, me not familiar with islamic banking reporting.
cherroy
post Aug 15 2012, 01:56 PM

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QUOTE(ckmoy007 @ Aug 15 2012, 01:08 PM)
Is genting bhd considered blue chip?
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There is no exact definition of it.
Like A is blue chip, B is not as there is no criteria to determine whether a stock is classified as blue chip or not.

It is just a general term market used to refer a stock that is financial fundamental sound, large cap etc.


cherroy
post Sep 15 2012, 10:34 AM

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QUOTE(aleyna58 @ Sep 15 2012, 10:29 AM)
Hye, i'm newbie here try to ask noob questions.

What is the minimum amount if i want to invest? is it possible if i have 2k? let say i'm not a person who want a quick return thus looking for a cheap one

How to calculate? do i need remisier?

:: 2k is my guinea pig actually. just try my luck
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There is no minimum amount.

Only got minimum amount commission charges. Refer to FAQ topic on post 4 on charges incurred.

Yes, possible to invest with 2k.

Yes, you need a broker, or remisier.

cherroy
post Oct 15 2012, 09:35 PM

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QUOTE(jrmy02 @ Oct 13 2012, 01:23 PM)
Hey guys,

I'm new to stock market.

Would like to ask what will happen to a stock after it has been acquired by other company?

Lets say I have 10 lots share of company A, bought at rm1.00.
Company B acquire company A with a price of let say rm1.20.

What will happen to my shares? Do they become rm1.20 in value as well?

Need some enlightenment

Thanks
*
It depends.

If there is mandatory General offer to acquire the shares that Company B doesn't own, then Company B will offer you to sell to them at Rm1.20.
If company B just acquire some stake that does not trigger the MGO, your share price value still subjected open market demand and supply pricing.


Added on October 15, 2012, 9:36 pm
QUOTE(rayng18 @ Oct 15 2012, 05:51 AM)
Yes of course, u are holding the shares and the Co B will acquire the shares at RM1.20 from whom? U..
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The answer is not as straight forward unless it is an MGO. smile.gif
or acquire the entire stake of the company.

This post has been edited by cherroy: Oct 15 2012, 09:36 PM
cherroy
post Oct 16 2012, 05:37 PM

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QUOTE(jrmy02 @ Oct 16 2012, 01:48 PM)
Hi,
What does MGO means?
*
Mandatory General Offer.

cherroy
post Nov 12 2012, 02:41 PM

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QUOTE(a-ei-a @ Nov 12 2012, 01:50 PM)
Thanks for the reply. Does the share same as ordinary share in the KLSE, where I can trade it as per normal? Since the payment is not directly to remiser, is it directly to the share company?
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Yes, it is the same share.
Dividend reinvestment plan, do not need to fork out a single cent.
It just use portion of your entitled dividend to buy the share or in other word, instead of receiving Rm500 dividend, now you receiving RM300, while the RM200 is used to buy the share.
cherroy
post Mar 23 2013, 11:04 AM

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QUOTE(plumberly @ Mar 22 2013, 10:43 AM)
[attachmentid=3358510]

Hope some sifu can help me with this.

E.g. BAT NTA is 1.7 while its price is 60.2

If I buy BAT at 60.2, I am also buying a company with assets worth only 1.7/share, right?

Yes, understand that the total worth of a company can include intangible assets (patents, goodwill etc).

Even then it is scary to pay 60 while knowing its real asset is only 1.7

Please clarify if I understood it wrongly or other important points on NTA and intrinsic value.

Many thanks.  biggrin.gif
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QUOTE(plumberly @ Mar 22 2013, 01:25 PM)
gark,

Noted and thanks.

It is still scary to put in 60 knowing that one will only get back 1.7 when it is in trouble. I guess that is the norm in stock market.

For my peace of mind, will do this P/NTA for the 30 giants in KLCI to confirm the norm.

Cheerio.
*
Market give valuation (stock price) primary based on the company ability to generate profit / dividend to the shareholders.

NTA/NAV is secondary issue, as it only matter when company liquidate time.

That's why we see BAT is trading at way higher than its NTA because it can generate handsome profit/dividend to shareholders.
While we see some stocks are trading at below NTA, due to profit generated is not as good or some making loss.

This ratio is not that meaningful as difference industry has different situation.
For eg.
Steel company need massive capex to produce a sale generally so it may have higher NTA than a servicing company that do not require much capex to generate the same sale level.

This post has been edited by cherroy: Mar 23 2013, 11:08 AM
cherroy
post Mar 23 2013, 02:56 PM

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QUOTE(gark @ Mar 23 2013, 11:17 AM)
NTA is important, WB based on his performance on Berkshire Hattaway's net book value increase year on year.  laugh.gif 

A company which is constantly raising it's NTA means a good growth/earning prospect. As it is accumulating asset/cash...and P/NTA could show asset heavy low valuation stock, suitable for asset play, but only if the PNTA is low enough.  laugh.gif
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NTA is important to WB, because WB is buying the company (it is also share, but if buy enough share to control the company, generally people called buy the company) . WB can buy stock under NTA, and control the company, even want to liquidate or do whatever to the company asset also can.

Retailer cannot. Retailers just buying share of the company, not buying the company.
If management doesn't want to share the profit made, doesn't want to give a single cent of dividend, even the company earn billions, if stock price doesn't react, retailers earn nothing

If solely based on NTA nd PE, a lot of red chips in KLSE must be top target, as a lot are trading way below NTA (even cash level), and single digit PE.
Want? brows.gif

Yes, NTA is important, but if management doesn't want to share the profit made aka increase NTA (tons of accumulated profit which make the NTA higher and higher), nothing retailers can do about it.
While WB has stake and has a say on company, which it is totally different scenario than a retailer.

This post has been edited by cherroy: Mar 23 2013, 03:01 PM
cherroy
post Sep 9 2013, 02:38 PM

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QUOTE(topearn @ Sep 8 2013, 09:25 PM)
What happens if someone accidentally key-in sell Maybank share at RM1 instead of RM10 (current Maybank share price) and I grab the share at RM1 B4 he realise his mistake ? Is my purchase valid ?
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You won't, as the lowest one can key in the amount is RM7, aka a 30% movement limit for a trading day, so stop dreaming. tongue.gif
cherroy
post Sep 10 2013, 01:24 PM

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QUOTE(moonhowler @ Sep 9 2013, 09:33 PM)
Say if best buy price of Stock A is RM1.00, best sell is RM1.10.

If someone enter BUY RM1.20, What will happen? Transaction can happen at RM1.10, will I be paying RM1.10 or RM1.20?

i know there is no reason for anyone to do so, i like to know out of pure curiosity.

Thanks
*
It depends on the queue situation.

If seller is Q at 1.10 with 10 lots, while buyer hit 1.20 with 20 lot, then the matched transaction should be at 1.20, aka seller manage to sell at 1.20, despite put 1.10

While if seller Q is at 1.10 with 1000 lots, while buyer hit 1.20 with 20 lots, the probably it will be matched at 1.10 only. Buyer get 1.10, despite key in 1.20

Correct me if I am wrong.
It is always depended on the system adopted by listing provider, aka KLSE locally. While in other bourses, different rule may be adopted.
cherroy
post Sep 17 2013, 05:25 PM

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QUOTE(plumberly @ Sep 16 2013, 04:37 PM)
Just watched PBS' Money, Power & Wall Street about the CDO, sub-prime, the bail-outs, collapse etc.

While watching it, one question came to mind.

I will avoid investing in things I am not familiar with (e.g. CDO) or something very new. Problem is, companies I invest in may invest in such CDO's etc.

Is a non financial company allowed by law to invest in things beside bond, FD etc.? 

Heard some 15 years ago an CEO of a major oil company in Japan invested in the future and lost a few millions. Same rule in M'sia?

Cheerio.
*
If not mistaken, there is no company rules or listing rule said that company cannot invested their money into whatever investment product.

But if company do invest in bond, derivatives, or whatever, normally it can be seen in the balance sheet.
So check the annual report and Q report for any development on the issue.
It is the power of shareholder to question the management board whatever investment that the company has made.
cherroy
post Sep 19 2013, 09:53 PM

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QUOTE(plumberly @ Sep 19 2013, 06:43 PM)
Cherroy,

Spin off questions.

AA.
If I understood the videos correctly, the seed to the existing banking problems was planted when one ex US president "cancelled" (don't know the proper legal word for this) the banking regulations imposed after the Great Recession in the 1920's, allowing the banks to do more than just loans, FD etc. I assume our version are the "investment banks" here, right?

BB.
Any banks or companies in M'sia or Asean got into trouble due to their CDO/sub prime involvement?

CC.
The videos were made in 2012, covering events up to 2012. With JP Morgan's US$700+ million fine just a few days ago, I take it then that the crisis in 2007/2009 is not really over and majority of the problems is still hanging in the air, unresolved. Your view?

Cheerio.
*
Sorry, not well verse with US history.
But derivatives product is becoming more sophisticated since 90's.
Yes, those are investment bankers, not ordinary commercial bank.

As far as I knew, no or very little exposure, even got, more like an indirect route, because currently financial world is inter-related.

The 2008 crisis was about credit freeze. Aka banks did not trust each other, result in inter-bank lending cannot function. Everyone fear to lend money out.
In a modern financial system, you need interbank lending to operate to provide daily liquidity for bank to operate.

Bank do not hold on every deposit they had, they lend it out,what if suddenly depositors want to withdraw money in big sum that exceed bank cash level, what they do?
They lend from other bank to give the cash to the depositor.
If one day, no bank want to lend them?
How, tell depositor no money?
Then confidence on the bank collapse instantly.
Once no confidence on the bank, it can cause bank run and result in the bank become insolvency.

Once the news Lehman came out, everyone suspicious on each other, result in freeze in inter-bank lending activities, causing even more stress on banks across.

The crisis is no longer here (2008 global financial crisis), most banks have adequate capital ratio already as compared 2008 time.
The problem currently US has is the fiscal deficit, and debt, no about banks issue anymore.


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