kcchongnzWhere are all the doomsayers in this thread?
Those who took this risky arbitrage earns 25%, or annualized return of 75%!
Posted by kcchongnz > Apr 30, 2013 09:48 AM | Report Abuse X
News broke out about the signing of the S&P for the takeover offer last night. Maximum takeover price 83.6 sen and minimum 76 sen. Completion of S&P by end of May. GO say take another 3 months to complete.
If everything concluded in the one plus three months and all investors get their money in four months, the profit of buying KHSB now at 67 sen would be between 13.4% and 24.8%, or an annualized return between 40% to 75%.
Why is there such a high risk premium for this risky arbitrage play?
YoloHi Chong, do we need to sell ourself or the bank will do the rest ?
kcchongnzMelvin, just to shiok a bit here lah. Remember that time we were the only few who stick to OTB while so many people taruk him on this KHSB?
Yololol yea those ppl wan zero risk investment, they wish!
66300Sold all at 0.835 for a 20% absolute profit. TQ OTB!!!!
66300Sold all at 0.835 for a 20% absolute profit. TQ OTB!!!!
inwest88OTB has made another person richer. Congrats !
fadhil5366300 can u kindly explain i'm being ignorant. i just bought this counter today at .83. what will be after this. tq
fadhil53kcchongnz can u help me on this predicament . tq
fadhil53melvin G may i ask -this stock will not be traded in the open market tomorrow?
kcchongnzPosted by fadhil53 > Aug 28, 2013 11:23 PM | Report Abuse kcchongnz can u help me on this predicament . tq
Not a good move to buy at 83 sen as the GO price is 83.6 sen. Eventually you will be given a check with 83.6 sen settlement price. You wont make any gain after taking into consideration of your opportunity cost or loss in interest from your money.
That is a problem of buying something without knowing what is happening. But never mind, take it as an inexpensive lesson learned.
Ooi Teik Beekcchongnz Melvin, just to shiok a bit here lah. Remember that time we were the only few who stick to OTB while so many people taruk him on this KHSB?
Ans : FCTB and IMF_hau are the most stupid idiots in this forum, go and learn 20 or 30 years before they attacked me. No standard and still want to act as sifu. Do not know how to read chart, yet try to act. I am very sure they will lose all their money in bear market. Please be humble to learn, frog inside the small well. You keep quiet we never say you are stupid.
Ooi Teik BeeIf you follow my recommendation, you still laughing all the ways to the bank. It is not possible to have 100% accuracy because I am not a god. Why you quote only losing trades ? What about KHSB > 100% gain, LBS-WA >120% within 10 trading days ? My ROI now is > 60% gain even there is a sell down. You notice my selection is you win big and lose small. This is my strategy. I do not want to brag and boast here, you force me to answer you. Enough is enough, I want to let all valued readers to judge whether I am a reasonable person or you are an unreasonable person. This forum is supposed to be a learning and sharing centre, it is not a personal attack forum. Please be reasonable if you want to make money in stock market. It is my advice to you. Thank you.
johndowyeah lah .. what to play stock .. win everytime .. then put money in fixed deposit la. Mr Ooi is kind enough to give his opinion. Want to follow or not .. that is the risk u guys need to take lah. Do you own thinking . not just hentam people. Aiyooo .. what laaa .. this kind of people also got!
66300OTB, Dont be bothered lah. Some dogs bark for no reason, some keep barking because they get excited when some one respond.
These barkers chose not to highlight your preamble :Just be happy if you get it right 60% of the time. So dont respond, let these barkers syiok sendiri.
As For me, I am buying my wife a new car with KHSB profits. Yes I am an OTB ball carrier and proud of it. Yes I am boasting about too. Its my prerogative. See if I can find OTB number plate...
ivchoongWhatever said & done both positively & negatively, I learnt much from u guys' sharings. Just sold all my khsb @ 0.835 which I hv been holding for umpteen yrs. What a relief! Tks OBT for yr constructive sharings. Wished I had discovered this blog earlier then could hv made some 'kuih muih' pocket money! Come on guys let's make this an educational blog with a common aim to make profits & not to turn it into a battlefield. For better or for worse, at the end of the day the final decision is yrs to make. Hi to everyone & lets make some bucks together!
kcchongnzRisk arbitrage, a lesson learnt from KHSB.
Posted by kcchongnz > Apr 30, 2013 09:48 AM | Report Abuse X Market inefficiency? News broke out about the signing of the S&P for the takeover offer last night. Maximum takeover price 83.6 sen and minimum 76 sen. Completion of S&P by end of May. GO say take another 3 months to complete. If everything concluded in the one plus three months and all investors get their money in four months, the profit of buying KHSB now at 67 sen would be between 13.4% and 24.8%, or an annualized return between 40% to 75%. Why is there such a high risk premium for this risky arbitrage play?
The arbitrage opportunity for KHSB worked out exactly like what was written above 4 months ago. The Selangor Government is actively purchasing KHSB's shares directly from the market now at 83.5 sen. So the time frame of 4 months from the signing of S&P is also exact.
So the return for those who took the risk arbitrage made about 25%, or an annualized return of 75% as anticipated.
kcchongnzMelvin, holding KHSB when you can sell at the price they going to settle with you in a few months time is not a wise move.
YoloGot it. I was hoping for the extra dividend they might be distributing.. Thks!
ChatterboxBursa news: Finally.... Type Announcement Subject TAKE-OVERS & MERGERS (CHAPTER 11 OF LISTING REQUIREMENTS) Description KUMPULAN HARTANAH SELANGOR BERHAD ("KHSB" OR "COMPANY") - UNCONDITIONAL TAKE-OVER OFFER BY AFFIN INVESTMENT BANK BERHAD ON BEHALF OF KUMPULAN DARUL EHSAN BERHAD ("KDEB" OR "OFFEROR") TO ACQUIRE
(I) ALL THE REMAINING ORDINARY SHARES OF RM1.00 EACH IN KUMPULAN HARTANAH SELANGOR BERHAD ("KHSB") ("KHSB SHARE(S)") NOT ALREADY OWNED BY KDEB; AND
(II) ALL THE NEW KHSB SHARES THAT MAY BE ISSUED PRIOR TO THE CLOSE OF THE OFFER ARISING FROM THE EXERCISE OF THE OUTSTANDING OPTIONS GRANTED PURSUANT TO KHSB’S EMPLOYEES’ SHARE OPTION SCHEME
(COLLECTIVELY REFERRED TO AS THE "OFFER SHARES")
FOR A CASH OFFER PRICE OF RM0.836 PER OFFER SHARE ("OFFER") The Board of Directors of KHSB wishes to announce that KHSB has today received the attached press notice from AFFIN Investment Bank Berhad, on behalf of the Offeror, informing that pursuant to Section 33 of the Malaysian Code on Take-Overs and Mergers 2010, the Offeror has dealt in KHSB Shares on 23 September 2013. Please refer to the attachment for further details.