DJ futures -153 now.

Because market is wary about this news of US gov said, it is not viable to continue to support GM, Chrysler with endless money aid with no foresight of turning the company around. http://news.yahoo.com/s/ap/20090330/ap_on_..._wh/obama_autos

If they choose to file bankruptcy, then a new wave of sell down can be expected.

You mean those need to double pay one? (right issue)

I don't know, but I always try to stay far far away from those need shareholders fork out money one, instead giving out money to shareholders.

I always keep in simple.
Why we want to invest in stock? To get a return, dividend or capital appreciation which company can generate worth to us.

For right issue, the situation is like I invest in your company, then you want me to fork out more money.

Buying Maybank with right issue now is somehow similar with a the price of tag (if share price now is 4.10) = 4.10 + (2.74 x 9/20) = 5.33

Edited:

For short term goreng, no comment.

This post has been edited by cherroy: Mar 30 2009, 04:56 PM

2.74 is the right issue price, 9/20 is the ratio of right will be given.
It just mean if you bought Maybank at 4.10, effective rate/price is 5.33 because you need to fork out money for the right issue 2.74, if not your shareholding in Maybank will be diluted.

Actually, if we look back history, very few good company or specifically those doing well in long term (share price or fundamental) have right issue before.

Good company should give shareholders money, not that other way round.

We invest in stock market tries to make money, instead making money for us, it become we give money?

Ex-right for Maybank will be 3.66 (based on input by forumers), so right issue is at 2.74.

It shouldn't traded more than 3.55-2.74 =0.81, so fair price or highly it will be traded around 0.70. If Maybank share doesn't move at 3.66.

Because there are some decimal at the back being ignored or rounded up in the process of come up with 3.66 ex-price.

May be boosted by the issue of its Director is buying. (but very small quantity)

Qcapital not bad mah, approaching 0.80

Queued, queueing at 0.80.

Want to follow me to "Holland"?

Based on last year DPU, yield is around 9%. (7.5 cents)
While lastest Q earning is 2.xx cents.

Witholding tax for local now is 10%.

Main risk is more about its borrowing.

Wah, I see no less than 30 index linked counters (heavy weight one) is being sold at 1 lot across. Try to make index down?

Edited,

Ooppss, I forgot today is settlement day for FKLI, always got funny act coming up during this time. It has been awhile I don't trade FKLI, nearly forgot it.

This post has been edited by cherroy: Mar 31 2009, 04:41 PM

No.

Currently we should throw PE ratio out of window, because future and near term profit for most company will be deteoriating at significantly rate which past data is no longer a good indicator already. No offence.

Now is about cashflow and net worth of the company.

It is not about earning profit or loss in current situation, the most important is to have positive and sustainable cashflow for the next 2 to 3 years.

This bankruptcy, that bankruptcy, then all bankruptcy, share market also closed shop then.

That time is not buy buy buy but die die die.

A lot of boat are sailing now. Just the pace may be different here and there.

In actually businesses out there, there are some improvement here and there, may be due to stimulus money. Although not significant or back to normal as last time, at least it has bottomed somehow. Not continue spiralling down.

Last time when US got new President, US market rally kau kau. Now Malaysia will be getting new PM, market also rallly kau kau?

My advice is if you are going to sell then use the money to buy another counter, it is advisable not to sell at all.
If market sink, mostly sink together, if market rise, mostly rise together. So switching here and there and more in and out of the market will only increase your chance of mistake.

Either hold if you view market is going up or sell if you view it is not sustainable and wait the market.
Unless your existing counter had some issue on its own.

Need to have good strategy to play this market. Selling one then straight away buying another just like you are betting big and small simultaneously, which chance of you will lose because of brokerage fee is high unless you are brilliant and precise enough to time exactly and getting right on both counters movement.

Just an advice, don't mean now it is good or bad time to sell. Judge your own.

Haha, should put the disclaimer on my signature then.
May be put in avatar as well.

Anyway, thanks for the suggestion though.

They will put up the announcement.
or generally the stock price page on your online portal will put a sign of *C
*C - mean cum dividend, cum right, cum bonus etc.

The economy is not recovering or yet. It is just the stock market recovery (which anticipating economy will recover) after dropping more than 50% mostly across.

No actually, BNM, central bank or gov want to see actual recovering in place before they will let it go on its own, otherwise, they will intercept from time to time (cur rate, inject liqudidity) to ensure the recovering is actually in place and start growing.

Don't be surprise with another rate cut, but there is no certain somehow like 50:50 now.