So what happened today?
A snapshot of what happened on 4 December 2017 as below. When view in totality (Sime Darby, Sime Darby Property and Sime Darby Plantation), there was a 1.4% drop from Thursday's price and a significant 5.6% decrease from Sime Darby's initial price of RM8.94 before the split. Again, we do not think that this movement has been a rationale one and believe investors are panic selling as the fundamentals remain intact.
Part 1: https://klse.i3investor.com/blogs/wiz_of_finance/140175.jsp
Cumm-dividend and Ex-dividend strategy in works?
Recall our discussion in our previous blog post about the price of shares that do not adjust to their theoretical ex-price which leads to a potential profit opportunity. Refer to our posting below if you missed it:
https://klse.i3investor.com/blogs/wiz_of_finance/140213.jsp
In summary, the movement in Sime Darby's share price is one of this instance. Instead of adjusting by RM0.17, there was only an adjustment of RM0.05. Hence, if you bought the shares on cumm-date and disposed it on ex-date, you would have made 5% in a very short time. Of course there was also a positive momentum for Sime Darby shares which contributed to this.
Back to Sime Darby Plantation..is it overpriced?
Today the price of Sime Darby Plantation slid another 3%. As per our previous post, we believe that SD Plantation should be a safer bet. However, is this justified. Let us look at some of the points below:
So what should you do?
Again what we like to do here is to lay down the facts and allow you to make your own decisions. The aggressive scenario might be a stretch but that is precisely why we lay down the facts for your scrutiny and comments.
As always, please comment below should you have any opinions on this.
Disclaimer: This is not a buy call. Please do your own research before investing.
Cheers,
Wiz_of_Finance
If you are interested in contacting me for more analysis, please contact me at wiz.of.finance@gmail.com
Created by wizard_of_finance | Jan 21, 2018
HENGYUAN @RM21 CONFIRM COMING
Pe 25? Stupid.
2017-12-05 08:15