Nov 15 2008, 02:05 AM
QUOTE(Yzene @ Nov 14 2008, 10:42 PM)
look at the par value! It is 10cents only.
If you compare the other stock with par value Rm1, IOICORP is relatively expensive.
2.08x10 = Rm 20.80.
To me, IOICORP will not be my choice, I would rather to buy others like Chintek or Kulim, more promising to me
Par value has no meaning other than to split shares from the default RM1.00 per share. Splitting shares are done to make the share more liquid if it becomes to expensive to buy for retailers. If you compare the other stock with par value Rm1, IOICORP is relatively expensive.
2.08x10 = Rm 20.80.
To me, IOICORP will not be my choice, I would rather to buy others like Chintek or Kulim, more promising to me
By multiplying the share price * 10 because the par value is Rm0.10 is also wrong as it does not actually valuate a share properly.
To see how big a company is compared to another, use the share price and multiply by the amount of total shares the company has. Par value is just a reference number.
To see how expensive a company share is, use the PER method.
This post has been edited by skiddtrader: Nov 15 2008, 02:07 AM
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