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Wednesday, April 24, 2013

Why must sell MBSB Warrant now?

Why need to sell MBSB warrant now?

MBSB has proposed Special dividend of RM0.18 less 25% tax, and Final dividend of RM0.09 less 25%. Total RM0.27 less 25% tax, net RM0.2025.

14/05/2013 ex date.
16/05/2013 entitlement date.

Please double check the dividend figure and date, I did not verify it.

Assuming the dividend is approved at the AGM, MBSB warrant holder can convert the warrant to MBSB mother share, and get the dividend.

However, there is a cut-off date. If warrant holder convert the warrant to mother share after the cut-off date, they will not get the dividend.

"Normally" the cut-off date is 10 working days before the entitlement date. But you need to check with the registrar.

Now MBSB stock is trading at RM0.96 to RM1.00 higher than MBSB warrant. Based on my prediction, at the cut-off date, Warrant will drop about RM0.20, and MBSB will trade at RM1.16 to RM1.20 higher than Warrant. Then at dividend ex date, MBSB share price will drop about RM0.20 and MBSB will trade at RM0.96 to RM1.00 higher than warrant, back to current level.

If I have MBSB Warrant, what shall I do now?

1) Convert warrant to MBSB mother share before cut-off date

2) Sell warrant and buy MBSB. This is more easy but more expensive because involve brokerage. Furthermore, MBSB warrant is trading at discount.

Also, one warrant is RM1.80, invest in MBSB is RM2.80, need more money.

Unless you have 3 warrant 1.80X3 = RM5.40, and buy back only 2 MBSB, RM2.80X2=RM5.60.

3) Sell warrant just before cut-off date, buy back warrant after cut-off where the price is expected to drop about RM0.20. A bit risky becuase after you sold, the price may go up before drop RM0.20.

4) Got one illegal way of make money but I will not mention it. I will not do it also. Because is illegal.

What if I hold warrant but I don't do anything. Then I will lose out because later warrant will drop about RM0.20.

Please note that the above is my own case study. I don't have time to explain in detail. My info may be wrong. This is not an advice or recommendation. Please consult your financial planner, remisier or dealer.

I do my own case study because if I have MBSB warrant and do not take action, I will lose out about RM0.20. I hope MBSB warrant holder will not lose out.

More information on MBSB, here.
http://politemarket.blogspot.com/search/label/MBSB

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Saturday, April 13, 2013

Another of my stocks made 300% - 2 years 5 months from Hua Yang stock

I hope my calculation is correct, because many rounds of bonus issue and dividend.

 

Bought Hua Yang stock at $0.97.

Oct-11   Bonus issue 1:3, cost became $0.7275 (total shares 1.333)

Oct 12  Bonus 1:4 cost became $0.5820  (total shares 1.667)

 


Sep-11 dividend $0.075

Sep-12 dividend $0.15 on more shares after bonus. Received $0.20

Feb-13 dividend $0.05 on more shares after more bonus. $0.0485

  

If Huayang Price touch $2.14.

$2.14 X 1.667 shares = $3.567

Dividend 0.075+0.20+0.0485 = $0.3235

 

Huayang share price now is $2.23

 


Please don’t argue with me whether to include dividend received to assess the performance.
 

Most funds (if not all) performance include dividend.

  

If bought stock A $1.00, receive $0.70 dividend. Current price $1.00.

Bought stock B $1.00, no dividend, current price $1.20

Which one better? Made 70% from stock A (although price didn’t move), but only 20% from stock B (although price already up).



Please don’t be fooled by me or other persons if I said or they said we made few hundred %. If I buy many stocks, not surprise if some stocks made few hundred %. More important is the overall performance of fund year after year, all stocks and cash combined. Got few stocks I made losses, but average is still ok.

 

 

Nothing great if one or few stocks made big gain. More important is the overall performance. Look at my Fitters stock, still suffering losses.

 
I was able to achieve these using PEGGY Method and Dollar Cost Averaging.

 
 
Will start to sell some Hua Yang. But will still keep most while waiting for financial result and research report. Will only sell very little.
 
 
 

For stocks that I have made more than 100%, here.


 

 

For the performance of my fund, here.


 

 

 

For my recent transactions, here.


 




More information on PEGGY Method, here.
http://politemarket.blogspot.com/2010/05/how-to-get-peggy-figure.html



 

 

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Saturday, April 6, 2013

My Blog exceed One Million page view

Started blogging since March 2010, three years plus one month, my blog page view exceed 1 million. It can be one million people view one page each, or one person read one million times. Or also can be 500,000 persons read total two pages each. I really don't know.

If compare with many popular Malaysia stock market blogs, this is very little. But if compare with less popular blogs, then is different, especially nowadays I seldom blog.

Previously I have many things to blog, sharing how I invest. But now I have less things to blog because most of the things on how I invest, I already mentioned it. Now is more on the journey of my investment.

The first year average about one post per day. Now is only about one post per week. Now also very busy in my job, and have shorter lunch break. Traffic from my new office also very bad. Really no time.

Now average page view per day is about 400, or 12,000 per month. That figure is being maintained for the past many months. Previously during active month, can achieve 2,000 per day, or 60,000 per month.

When just started, the first few months was only 10 per day. Wondering who was these 10.

Blogging also helps me in my investment. I write down what I invest, and that helps me to evaluate my decision making.

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Disclaimer

Disclaimer Clause
The information contained in this blog is my personal diary and has been prepared solely for myself. Without any previous reading material or discussion, by just reading my blog contents, reader may misunderstand the contents.
All the contents I am talking to myself and most contents are hypothetical or imaginary.
This blog has been compiled in good faith, with no intention to cause hurt, loss, or any trouble. No representation is (either express or implied) as to the completeness or accuracy of the information it contains.
This blog also is not an advice, recommendation or an invitation to buy or sell or invest in anything, eg shares, futures, derivatives, gold, etc. Consult your investment adviser before making any decisions.
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