Posted by ronnietan > 2016-10-15 21:44 | Report Abuse

As this is a forum, I respect your views, especially as you're a skilled investor.
For this post, I share your conclusion as my view is bonus/split can produce a higher market cap for companies with good earnings, but it can't turn stone to gold.

Posted by John Chang > 2016-10-15 22:01 | Report Abuse

Vivocom example of stone? ^ haha

Posted by donfollowblindly > 2016-10-15 22:16 | Report Abuse

Agree. Condemning is his motive. KC also a lot of Holland counters. Pls refer to my past posts. If he is really good he must be very rich and no need to beg people "joining his course for a fee" in his numerous blogs.

Posted by John Chang > Oct 15, 2016 10:01 PM | Report Abuse
Vivocom example of stone? ^ haha

Posted by speakup > 2016-10-15 22:37 | Report Abuse

vivocom is pariah! all the construction companies up >10% before budget 2017, but vivocom DOWN! Really pariah counter.

Posted by cheoky > 2016-10-16 00:55 | Report Abuse

KC keep up your good work on sharing.

Posted by pisanggoreng > 2016-10-16 09:41 | Report Abuse

Ask yourself a simple question

If the stock that you have invested based on FA is giving bonus, splitting and free warrant , do you feel happy and expect the price will rise tomorrow ?
(I am talking about tomorrow not 10 years later )

If your answer is "YES" , then 1+1 = 3

If your answer is "NO" , then 1 + 1 = 2

In any market play , muture or not mature, other than TA , FA and luck , there is also some element of market sentiment or psychology

Remember

I am talking about the immediate effect ofrom the exercise , not 10 years later that everybody would have forgotten the exercise long ago .

Posted by pisanggoreng > 2016-10-16 09:55 | Report Abuse

What is the general public reaction ?

Happy or not happy

If happy , then it is a goodie

If not happy , then it is not a goodie

So simple

Why make it so difficult

Anything to do with 1+1=2 ?

Are you not aware it is psychology not mathematics?

Why talking long term or short term ?

What can not happen many days after tomorrow ?

Posted by Ooi Teik Bee > 2016-10-16 10:17 | Report Abuse

I share pisanggoreng's opinion, share split, bonus issue and free warrants will benefit shareholders in short term due to market psychology and human psychology of the market.
I know very well that in term of FA, there is no increase of value.

Stock market is not 1+1=2, market psychology and human psychology comes into play. A person will think that buying Gadang at 3.00 is expensive, buying Gadang at 1.20 after corporate exercise of share split, bonus and free warrant is very cheap. Most investors are not so knowledgeable about fundamental of the stock.

Good examples like VS, Hevea and Gkent.

Thank you.

Posted by stockraider > 2016-10-16 10:37 | Report Abuse

Actually u need to view the freebies in 3 perspective;

1. academic; thereotical No different like most university professors said.

2. Practical View bonus as positive....if your counter is undervalue, having bonus will bring up and sustain a higher value in your stock, even short and long run.
Bcos this bonus call for rerate the valuation of your stocks.

3. Practical View bonus as negative...if your counter is overvalue, having bonus, give u is chance and opportunity to sell....as usually short term it will bring up the value, thus u should take the opportunity to run fast. Bcos long run, it will come down bcos of overvalue

Raider see bonus are use as a publicity campaign tools use by companies, u need to make use of it intelligently in order to profit from it

Posted by CKNYAM79 > 2016-10-16 10:45 | Report Abuse

Not all what he wrote is 100% correct. For short term holder , when the share price not go according to expectation, you will mention is pariah stock. But when it go up at 0.370, you mention a darling stock. If a greed blind u not profits taking, pls don't blame the stock. Blame yourself. Many company has history. The most important the company need to amend his mistake and start reconstruct urging and generate revenue. If Vivocom share price stand at 0.200 is not attractive enough, when it's go up 0.400 you will say it expensive enough.

Posted by stockraider > 2016-10-16 10:52 | Report Abuse

Conman will use bonus issue to manipulate naive investors thru bonus mah.....!!
Usually if the stock is ovevalue with not that good prospect and the company announce a bonus issue....it is better to take the opportunity to sale loh....!!

Posted by CKNYAM79 > 2016-10-16 10:54 | Report Abuse

Agree with donfollowblindly, try read the last sentence, the motive is to promote himself rather than provide facts

Posted by CKNYAM79 > 2016-10-16 10:58 | Report Abuse

When Vivocom reach target revenue rm500mil after q3 and q4, then I want to see what he will write later.

Posted by Ooi Teik Bee > 2016-10-16 15:09 |

Post removed.Why?

Posted by kcchongnz > 2016-10-16 16:39 | Report Abuse

Posted by John Chang > Oct 15, 2016 10:01 PM | Report Abuse
Vivocom example of stone? ^ haha

Posted by CKNYAM79 > Oct 16, 2016 10:58 AM | Report Abuse
When Vivocom reach target revenue rm500mil after q3 and q4, then I want to see what he will write later.


Go back to the link below and see how all those corporate exercises carried out by Vivocom in the event study graph made many investors lost tons of money, and also the historical share price movement of Vivocom in the link below.

http://klse.i3investor.com/blogs/kcchongnz/106438.jsp

Then come back here and tell me if Vivocom a gem or a charcoal..

Posted by kcchongnz > 2016-10-16 17:02 | Report Abuse

Posted by pisanggoreng > Oct 16, 2016 09:41 AM | Report Abuse
Ask yourself a simple question
If the stock that you have invested based on FA is giving bonus, splitting and free warrant , do you feel happy and expect the price will rise tomorrow ?
(I am talking about tomorrow not 10 years later )
If your answer is "YES" , then 1+1 = 3
If your answer is "NO" , then 1 + 1 = 2
In any market play , muture or not mature, other than TA , FA and luck , there is also some element of market sentiment or psychology
Remember
I am talking about the immediate effect ofrom the exercise , not 10 years later that everybody would have forgotten the exercise long ago .


Hi Pisanggoreng my good friend, how are you?

If your answer is "YES" , then 1+1 = 3
If your answer is "NO" , then 1 + 1 = 2

Well, look at my previous post as appended below

http://klse.i3investor.com/blogs/kcchongnz/106438.jsp

EAH and Vivocom's management wanted the general public to believe that 1+1=3, and true enough, many of them believed. The insiders, and also the minor shareholders if they have sold at the high, certainly benefited enormously because they were able to convince that 1+1=3. What happen then?

The poor new shareholders who believed that 1+1 =3 chased the share price up while the insiders and major shareholders dumped them in drove. Finally the truth prevail. 1+1 is not equal to 2, but 1+1 actually equaled to minus one.

The truth exposed was not after 10 years, not 5 years, but one month, or just a few months.

Please go and read what I have written there and my event studies.

For good companies 1+1 sometimes does equal to 3, or 10, but sadly most of the time, 1+1 is indeed equal to 2, and even equal to -1, or -5 very often.

Posted by Wing50 > 2016-10-16 17:10 | Report Abuse

Bonus, share split and free warrant are all 'gimmicky' exercises carried out by companies, typically in Malaysian stock markets. Technically it does not create any extra value to the share price. However, like what most commentators says, psychologically, investors 'think' that they have 'gained' extra shares.

In the longer term, any short term movement after the bonus, split or free warrant will return to its original equivalent price if there is no additional positive/negative factors occurring to affect the movement in the price.

Directors should concentrate on running the business instead of carrying out all these unnecessary, useless and costly corporate exercises to artificially inflate the company's share price.

If the fundamentals of the company are so good then they should increase or declare special dividend payout to all shareholders.

Posted by choop818 > 2016-10-16 18:32 | Report Abuse

The danger of labeling and having an inflexable mindset may deprive us of opportunities.

Posted by Jay > 2016-10-17 11:51 | Report Abuse

fundamentally it can also be argued that these corporate exercises actually increase value by improving the liquidity of the counter. In valuation, a discount can be ascribed for lack of liquidity so improved liquidity actually improves valuation of illiquid counters.

that said, most companies that have these corporate exercises actually already have pretty good liquidity. so I agree with the views above that it is more of a market psychology thing, good counters will still shine with or without these exercises, the opposite is true for lousy counters.

one also cannot ignore the forces of traders who will buy up the shares when such exercises are announced and sell at a high. it is nothing more than another technical indicator for them. such traders will increase the price volatility and if the company has poor fundamentals, it will crash hard when it's under selling pressure

Posted by apini > 2016-10-17 18:44 | Report Abuse

It is a double edged sword
For a great undervalue company , it is definitely a goodie
For a pariah overvalued company, it is definitely not a goodie
What KC wants to tell you is you must have the knowledge to identify whether it is a goodie or non goodie
So join his online course if you want such skill

Honestly speaking to me and most of the people here including KC himself, it is a goodie .
Because we buy great companies, not vivacom or Egh so fond of corporate exercise

Posted by kcchongnz > 2016-10-18 14:10 | Report Abuse

Posted by apini > Oct 17, 2016 06:44 PM | Report Abuse
It is a double edged sword
For a great undervalue company , it is definitely a goodie
For a pariah overvalued company, it is definitely not a goodie
What KC wants to tell you is you must have the knowledge to identify whether it is a goodie or non goodie
So join his online course if you want such skill

Honestly speaking to me and most of the people here including KC himself, it is a goodie .
Because we buy great companies, not vivacom or Egh so fond of corporate exercise



Thank you very much my friend apini.
I absolutely agree with your last paragraph.