Not actually, it is because of the min commission incurred which the lower your trade, the higher % of the commission.

But once you reach the threshold of the min commission (a few K per transaction above), then it makes no different.

This is a good calculator.

https://einvest.hdbsib.com/calc/frm_Calcstk.asp

Senior,
Need some advice regarding this Sapcres-WA.


I still got 50 lots (5000 unit) of Sapcres-WA at RM0.005. Am i still able to convert it on 16/2 to the Mother share since the expiry date is at 18/2

Based on the calculation,

50 lots after conversion to 0.71, i will be able to make about

5000 x [0.765(current price)- 0.715) = RM500 profit

Please correct me if i am wrong because i am still new in this warrant system

Calculation wrong already. 5000 x 0.05 how can be 500? should be 250

Your cost of 5,000 unit at Rm0.005, if you just bought 5,000 unit.
Rm25 + min commission + stamp duty + clearing fee = it might mean around RM0.01. So if your cost of WA is RM0.01 so total cost of your WA is 0.71+0.01 = 0.72

So if you managed to sell at 0.765 after deducting commission of sale left around 0.76, net gain is 0.04 x 5,000 = Rm200 only.

There is some lag for the warrant to be converted, ie. you won't get your mothershare immediately. It will sometimes, by then its mothershare price is change already.

So by no mean you will earn Rm200, you might lose as well if mothershare drop. Normally mothershare will under some pressure when those warrant being successful converted as it means more supply in the market ie. more potential sellers. You need to consider how much warrant potentially being converted. If the mothershare price stay just like you mentioned, there is a lot of incentive for people to convert.

Mothershare of RM0.73 should be your threshold.

But you might earn more if mothershare goes higher if market sentiment and condition improved.

Do taking account into commission incurred to have more accruate gain/loss.

Cherroy,
Thanks for the detail clarification.

Hi guys, I wanna ask about dividends. I read on the newspapers about the dividends, say for example company XYZ announced dividends on
January 1
Date ex date is February 1
to those registered by February 7
to be paid on March 1.

If the dividend is 1cent and I have 1000 lots (rm10.00) does that mean that even if i bought it JUST BEFORE February 1 will surely get the RM10?
no matter the difference between a person buying it 10 months or 10 days the person before ex date he will get the dividend regardless?

Yes.

Really really ah? I mean, some would say too good to be true, some would say there would be a catch to it...is there somewhere in KLSE guidelines referring to this?

That's rules of the game, everywhere also same (as far as I know).

The Bursa Business Rules, the bible to stock broking & Futures Broking

http://www.klse.com.my/website/bm/rules_and_regulations/

http://biz.thestar.com.my/news/story.asp?f...88&sec=business

You buy prior before dividend generally the share price is higher already.

Share price tends to react to upside when generous dividend being announced.

So, it is not a catch.

While share price will be adjusted downwards (minus out the amount of dividend given) after being ex. So you gain nothing out of it, in short term or play just prior before ex-date of the dividend.

This post has been edited by cherroy: Feb 17 2009, 10:54 AM

Actually 1 lot is 1000 units or 100 units...

100 only , last time is 1000 d

I am looking to open a account online to trade stocks, so far looking at both PBE and maybank as i have savings account with these 2 banks. However i can't find their charges, is it the same for all bank @ 0.42% or min rm12?

why dont you try jupiter ??? minimun RM8 and o.05% brokerage only .so far thier system was not bad .no bad complain about it compare to other i dont recoman you to take maybank if wan pbe is ok

anyone here using SJSEC.com...I'm using this one and still new to this share thing..I plan to buy MBSB and currently at 0.78, how do i need to prepare if i want to buy only 5 lots? Thanks in advance

Never used, not sure.
But prepare for 500*0.78 + 42 = RM432 should be enough. (Took worse case brokerage of RM40).

Payment to Jupiter Securities Sdn Bhd for upfront payment, settlement of purchase contract, contra losses and other charges can be made to our account at the following banks:
i. Maybank A/C No :
ii. HSBC Bank A/C No :
iii. CIMB Bank A/C No :
iv. RHB Bank A/C No
v. Public Bank A/C No
vi. EON Bank A/C No :

Question, if i have cimb bank account, then i can just do online bank transfer for settlement?

is that simple? My brokerage is 0.42%? Are u sure. Thanks guru

yaya i think so .

so you need to call them if you wan a fast respone from them .