Dear Danielsks, the announcement says "entitled shareholders of HLI will receive 1,080 Narra Shares for every 1,000 HLI Shares held as at 5 p.m. on 16 October 2014 (“Entitlement Date”)." So I think we can sell only on 17 October 2014.

The above 345,030,635 Narra Shares to be distributed represent substantially all the consideration shares to be received by HLI from Narra Industries Berhad (“Narra”) pursuant to the disposal by HLI of Hume Concrete Sdn Bhd (formerly known as Hume Industries (Malaysia) Sdn Bhd) and the entire irredeemable convertible preference shares in Hume Cement Sdn Bhd to Narra.

The Capital Distribution shall be implemented by way of reduction of the share premium reserve of HLI by approximately RM234.1 million.

Under the Capital Distribution, entitled shareholders of HLI will receive 1,080 Narra Shares for every 1,000 HLI Shares held as at 5 p.m. on 16 October 2014 (“Entitlement Date”).

Fractional entitlements to the Narra Shares, if any, shall be disregarded and shall be dealt with by the Board of Directors of HLI as it may in its absolute discretion deems fit or expedient and in the best interests of HLI.

The Narra Shares to be distributed shall be credited into the Central Depository System accounts of the entitled shareholders within 8 market days from the Entitlement Date.

Dear Novice168, it is actually my name and my wife's name initial. Regarding the selling pressure, I am afraid what "happyman" commented got some truth in it.

"happyman: so many people keep thinking that upon ex HLI will be adjusted by 1.08....please 1.08 is only a reference price .. the ex HLI price will be determined by the market. it can be 4 or 5 or 6 or 7.....if 4, 5 people will be disappointed ..if 6, 7 then it will be good ...too early to tell, some even think it will be 12 before ex ....."

I will wait until it drops below RM8.00 to buy some more. Very likely T+ 3 of yesterday's (2.10.14) trading, i.e. next Wednesday (8.10.14).

Based on Thursday closing price of HLIND and NARRA, on ex-date and within 8 trading days after entitlement date,

1000 units HLIND (RM8.26 - RM1.08 = RM7.18) and free 1080 units NARRA (1.08 X RM4.47 = RM4.83). Total value in hand = RM7.18 + RM4.83 = RM12.01.

Compared to Wednesday's total value in hand RM12.41, today itself our investment drops by 40 sens.

Dear Danielsks, after ex-date on 14.10.2014, we still cannot sell our HLI yet. We have to hold until 5.00 pm 16.10.2014 (the entitlement date). We can only sell HLI on 17.10.2014 (the price after minus RM1.08). Then we will be given Narra shares only within 8 market days from the entitlement date, that is, on 29.10.2014.

In my opinion, after ex-date both HLI and Narra shares will be under tremendous selling pressures. As I have said, we still have Narra RM4.54 - RM1.08 = RM3.46 cushion.

When price of HLI dips some more, let's say below RM8.00, can add HLI shares to your collection.

Now we still have Narra RM4.54 - RM1.08 = RM3.46 cushion. Unless both Narra + HLI fall by RM3.46 by ex-date, then susah. I think the boss Quek won't let that happen.

Better add more HLI shares to our portfolio these few days before 14.10.2014 but must hold on to it until 5.00 pm 16.10.2014.

Very very good news: I have called the market operation of Bursa Malaysia, Puan Wan Ezrin, telephone number 03-20347548. It is 100% confirmed that HLI share price after ex-date will only be minused RM1.08 and not the price of Narra. You all can contact her yourself to reconfirm.

Based on Wednesday closing price of HLIND and NARRA, on ex-date and within 8 trading days after entitlement date,

1000 units HLIND (RM8.47 - RM1.08 = RM7.39) and free 1080 units NARRA (1.08 X RM4.65 = RM5.02). Total value in hand = RM7.39 + RM5.02 = RM12.41.

If this is correct, why people are still selling HLIND???

Thanks Novice168, we must hold on to the HLI shares until 5.00 pm 16 October 2014 to be entitled to be given the Narra shares within 8 market days, that is, 29 October 2014.

Dear Mr Steven Yong, may I know whether my evaluation below is correct or not:

Based on today's closing price of HLIND and NARRA, on ex-date and within 8 trading days after entitlement date,

1000 units HLIND (RM8.47 - RM1.08 = RM7.39) and free 1080 units NARRA (1.08 X RM4.65 = RM5.02). Total value in hand = RM7.39 + RM5.02 = RM12.41.

What has happened? Such a sharp drop from the peak! And suddenly so quiet.

Will there be a second leg up in the afternoon session or will it go sideways? Taking a breather now.

Ya, I also feel surprise. Selling pressure is great.

UOB Research report:
http://mymalaysiainvesment.blogspot.com/2014/07/hong-leong-industries-hli-mk-tapping-on.html

Probably what Steven Yong said is correct. HLIND share price will only be minused RM1.08 and not the full price of Narra after ex based on UOB Research report.

"Separately, we understand that so far, Bursa seems to have no issue with HLI’s proposal to use the par value to adjust its share price to reflect the distribution of Narra shares to HLI shareholders (1.08 Narra shares for every HLI share). If so, after the shares go ex Narra distribution, HLI’s share price will be adjusted by RM1.08, which is significantly lower than the potential distribution value of Narra of >RM5/HLI share (based on Narra’s present valuation)."

We can phone up the share registrar to find out exactly how the HLIND price will be adjusted on the ex-date as follows:

Hong Leong Share Registration Services Sdn Bhd

Level 5, Wisma Hong Leong
18, Jalan Perak
50450 Kuala Lumpur

Tel. No.: 03-2164 1818

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1753097
EGM on 23 October 2014 (strange because it is on a Deepavali public holiday)

Thanks ericoconut, that means 8 more trading days to chase the HLI shares. Hope for uptrend in these 8 remaining trading days before price adjustment.

Today's volume extremely low. Hope to see a rally after 4 pm. It is forming a hammer candlestick now which indicates a trend reversal from downwards to upwards.

There are still lots of stale bulls in PMetal. Those who bought below RM6 will want to take profit and those who bought above 6.50 will want to cut lost.

Thanks Steven Yong, same to you. I just believe anything to do with the Hong Leong group is considered blue chips. That is why I dare to buy.

Bought 1000 units at RM8.30. My first lot. Will collect more if it drops further. Having 5 lots in the best to avoid odd lots in the free Narra shares because 5 X 80 = 400 (not odd lots) other than the 5000 units.

Downtrend already following HLIND.

Dear Mr Duitlai, can you please give us the link to your comment:
"OSK price HLIND at RM10.10 (14CB ask price at 0.15 x 14) + RM8.00"

Wow! Close at a new high at RM4.50. Should be able to reach RHB Research target price of RM4.55 soon.

http://www.kitcometals.com/charts/aluminum_historical_large.html
If we were to look at this chart, the present aluminium price is equal to the price of 1st August, where PMetal price was around RM5.70.

I have sold a lot when it was above RM7.00. And the last lot at 6.96. No more PMetal

There should be a technical rebound tomorrow due to oversold position.

Close at only RM6.98. What is the fair price of PMetal now? Will there be a rebound tomorrow? Aluminium price is temporary in green now.

RM7.00 is broken. All hells break loose.

Now testing the resistance of RM7.00 already. Can it hold? Anyone queuing at RM7.00?

Can PMETAL hold on to RM7.00 resistance? Aluminium price still in red.

http://www.theedgemalaysia.com/business-news/299453-rhb-research-maintains-buy-on-cahya-mata-sarawak-raise-fair-value-to-rm455-.html

http://www.x-rates.com/graph/?from=USD&to=MYR&amount=1
Another important graph we have to see now. (The rally of US Dollar)
The more the US Dollar rallies, the more danger to commodities prices.

NARRA still uptrend following HLIND.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1743321
Finally, the bonus issues application has already been submitted to Bursa Malaysia.

I agree with Mr Abundance. What is the logic that PMETAL can maintain its price but the aluminium price chart keeps on dropping EVERYDAY? Anyway I bought long time ago at 6.16. So less worry. I will keep till ex-bonus day.

Dear Mr Undertaker, if you were to look at the aluminium price chart, aluminium price keeps on falling after it reached the peak. So, we can understand why people keep on selling PMetal now. The drop is due to the rising dollar. All we can hope for is the Federal Reserve will delay the interest rate height till June 2015.

CMSB has quietly has reached a new high of RM4.45.

We need you badly here Mr Querty during this difficult time of uncertainties. Please come back to guide us with your chart interpretation. Anyway we can find him in LBALUM forum.

http://www.lme.com/metals/non-ferrous/aluminium/#tab2
Just a slight upward U turn from US$2002 to US$2008 per metric tonne.

Just hope that the Federal Reserve will delay the US interest rate hike to June 2015 and not March 2015. If not the US dollar will keep on going up and commodities prices will keep on falling.

From Mr Querty: PMetal down for 2 days because it is overheated. The MACD is too high, thus the price must retreat to bring it down. However I expect to see it trending sideways for the next 1 - 2 weeks before it can resume its uptrend.

"I heard the Bonus issue submission to Bursa by early next week include free warrant for mother share holders."

Dear Mr 360Capitalist, if it is true that the 1 to 1 bonus issue come with the free warrant, how would the price adjustment be after the ex-date?

Miss you, Joel.

Yes, closing probably between 7.09 and 7.10.

http://www.kitcometals.com/charts/aluminum_historical_large.html
Aluminium price also recovering. Please see for yourself.

Cum-FV is MYR8.57.

The present market value of NARRA also suggests there is more upside from our FV, as its last close suggests that HLI could be worth MYR9.49 on a cum-dividend basis at the former’s last close.

It might also strike RM9.49 before ex-date according to RHB research.