Posted by jaynetan > 2012-09-12 14:59 | Report Abuse

bonus or spliting does not increase the asset or value of a company.That is theorytically. In actual life i see diffrent ways. Look at genting, kpj, umalacca for example, calculate their market capitallization before splitting or bonus and their market value after the exercises. I prefer later than before, as money talks

Posted by chongkonghui > 2012-09-12 15:08 | Report Abuse

You take GENTING, KPJ etc as example, which is not a reason why Bonus Shares "add value".

If they don't do Bonus Shares, Share Price still up lie NESTLE.

The problem is with our Bursa System, where min. lot is 100 shares and thus if a share price is RM80 per share, then 1 lot (100 shares) is why beyond the reach by 99% of retail investors.

Posted by jaynetan > 2012-09-12 15:37 | Report Abuse

you are right mr chong. without bonus or splitting price might go up also to an unknown price but not comfortable to man in the street. retail clients calculating and mindset are unique in many ways which beyond theories and data can explain. Records n experience telling me most counters , especially heavy weight counters,fetch higher market capitallisation after these corporate exercises. well, nothing is perfect, right or wrong, only those actually involve telling the true stories. i am talking about man in the street,or ordinary retail investers, stock A $50 usually they wont buy, very expensive , split or bonus 1 becomes 10, each 5 , very cheap already,as they see, also i see , GOOD BUY . easily goes beyond our imaginative price.