hehe shouldn't PN17 companies share prices go down?

Well the price hardly moved, so can't be a goreng activity. Could be some sell-off to the ready buyers which are queuing.

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Added on May 5, 2008, 12:24 pmDepends what is the take up rate of 3G among users.

At the moment, there is no advertisements about 3G in the TV, no other apparent usage apart from the popular, "I see you, you see me" phone conversations.

But good thing is 3G phones are getting cheaper although can't really be used to their full potential at the moment.

Here is a good article by the DIGI boss about the 3G deal in Malaysia.

DIGI boss says..


[/B]" Oh, there are so many of these gigantic mistakes. I must use 120 words of my allotted 900 in this column on the incredible hype and fall of the value of so-called 3G mobile spectrum. The payment from mobile operators to governments for the right to use airwaves is called the biggest transfer ever of resources from private to public wealth. What was the killer application? Video-telephony.

Big corporate CEOs in very dark suits were explaining how this would change the entire world. Think about it. If you hold your phone to your ear, you cannot see the person on the screen (though the other person might get a good look at your ear). And if you are holding your hand out to look at the screen, it will be very difficult for any of you to hear each other. The hopelessness seems obvious now but this little belief and hype drove a whole industry in Europe to massive debt and the brink of self-destruction. "[

This post has been edited by skiddtrader: May 5 2008, 12:25 PM

Every share is entitled to dividend. Even if you have only 1 share, they will still pay you dividends.

Most brokers will ask you to initially put some amount into the trust account before they allow you to trade for their own piece of mind. This is to show you have money to trade with in the first place. After a few trades, they will recognize you as a safe customer and they will allow higher leverage for your account. As long as you pay on time, they will have no reason not to allow you to trade more.

So to make it short, the answer is 'YES', they scared you run away.

Are you using online trading or through remisier?

Local steel prices was kept low, so local builders can buy cheaper steel even when international steel prices were shooting to the roof. So this is good for steel millers.

Steel importers exemption of import duties might affect local steel millers but then they can always sell cheaper thus increasing their competitiveness.

But the real question is the licensing, I wonder who will get all these license...??

Hmmm if I'm not wrong, you have to choose between online or remisier. If you started off with remisier, they might still charged you for their service since you can still call them anytime but no need to trade with them. I'm not entirely sure about this but let's say you want to ask something and you call your remisier to ask about it, but never trade with them. Instead you go home and key it in online yourself. The system will recognize your ID as being with a remisier and might still charge you for their services.

Most people get around this by getting a remisier service from 1 broker and applying for another online account from another broker. This will ensure that your online account and remisier account is different.

Best if you ask them yourself to be honest, I'm just guessing.

Well let's hope its not a case of Buy on rumour, sell on news scenario.

Your calculations are correct.

Not necessarily smaller. Par value has nothing to do with how much dividend they want to pay. A company can declare any amount of dividend if they are profitable.

The % dividend based on par value is just a play of words. Sounds better saying '8.6% based on par value' rather than '1.5% dividend based on market value right'?

Today is considered to ex-date for the warrant eligibility so the correction was expected. At current price level, the warrant holders can still command a price of about RM0.90 per warrant after taking into account the warrant issue price of RM0.10 and RM1.25 strike price.

YTLPOWR shares are still technically worth about RM2.45 before any warrants are exercised. So it still can move u p a bit. But remember though, at last price of RM2.66 and adding warrant issue price and exercise price of RM1.25, a lot of people are holding the shares at the average price of RM2.33 including the potential shares in hand from the warrants they are holding.

Those who bought earlier can definitely go even lower.


Here is some news of the YTLPOWER warrants and it's impact.

Star news

This post has been edited by skiddtrader: May 13 2008, 11:19 AM

They will send you a letter once they finalise the actual shareholders after today. After receiving the letter, I believe you have to apply for the warrant and send it to the broker in charge of handling the payments (Aseambankers). Not entirely sure of the process itself but that's what I get from my brokers office. Need to call again once I get the letter.

haha bonus to go Genting and invest more.

1) Actually, RM2.29 price is because the last price was around RM2.63 where people buy to get the warrant which is expected to be sold with a little bit premium.

RM2.63 x 3 = RM7.89 (RM2.63 is what the market bought to get the warrant)

RM7.89 + RM0.10 = RM7.99 (RM0.10 is the price of each warrant which can be exchanged for 1 share, so total price for the shares and warrant is RM7.99)

RM7.99 - RM1.00 (expected warrant price once listed) = RM 6.99

RM6.99 / 3 = RM2.33 (I believe this is how the market priced the current shares now, it will drop depending on how much the warrant can command.)


2) It doesn't need 3 warrants to convert to 1 share. Each warrant can be converted to 1 share. It's a 1:1 conversion. Only the distribution is 1:3, meaning 1 warrant for 3 shares. But ultimately, the warrants can dilute the EPS by 33% if every one is exercised.

3) WA, WB, Wx is called company warrants. CA, CB and Cx are called call warrants or structured warrants. There are no "Put" warrants in KLSE as far as I know.

4) No options for shares in KLSE, only in FKLI or KLCI Futures I think. Closest to option trading is those structured warrants.


For the prospect of YTLPOWR shares, I believe more downside is expected, because a lot of investor previously hold the shares at about RM2.45. So if the warrant pricing is RM1 and they manage to sell it, they effectively reduced their average price per share to less than RM2.20

This post has been edited by skiddtrader: May 14 2008, 11:28 PM

Yes, and keep in mind YTLPOWR still have about 800+ million in WA warrants oustanding due to expire in 2010. Although I think majority is held by the Yeoh family and YTL company itself. For the past 2 weeks, you can see quite a big number of the 'old' warrants + convertible bonds being exercised to take advantage of owning the new warrants. This exercises are countered by heavy buybacks by the company to keep the price stable.

It's normal for 'goreng' to last just for a while for people to take profit, while the rest of the 'gorengers' suddenly decides to become long term share holders because stuck at high prices.

If you believe your steel counter will make profit in the near future, just hold it. But if you bought the share thinking it will fly upwards nonestop, you should've a cut loss price to limit your potential losses.

And seems like a lot of UMNO counters in the red because of the resignation of Tun Mahathir from UMNO.

This post has been edited by skiddtrader: May 20 2008, 11:06 AM

That's not main reason why AirAsia is dropping but the 'reason why the reason' AirAsia is dropping.

MAS is now aggressively pushing their prices down while maintaining full flight services while AirAsia is still cheaper but it's a budget airline. AirAsia needs to be better than MAS or much cheaper to get their passengers. If AirAsia stops their promotion while MAS is having theirs, they would lose customers.

MAS although pushing their prices down (and some for $0) for the seats that are not booked in the frst place to fill up their planes, can earn from surcharges but AirAsia which does not have a heavy fuel surcharge does not profit anymore other than the snacks the passengers might have when they are in the plane. Especially when the tickets are at zero costs to the customers.

On top of that, both airlines are facing an ever increasing price of ther fuel due to higher world crude oil price. Both will suffer because of it.

Plus Tony Fernandes started sounding desperate in the papers accusing MAS of getting subsidies and what-nots from the government. Doesn't sound too good.

AirAsia's price is due to their growth, if they stop growing the prices will drop for sure.

Hate to OT here, but why do you say worse. I think this is one of the best times politically in Malaysia.

Hey Iklatmy, the YTLPOWR-WR being listed now is being sold by whom? The registrar? Because I thought the shareholders need to apply for the warrants first.