Can someone please advise how to calculate the theoretical price of mother and RCPS after ex? Say before ex date price is 1.50. a. Mother 1.50 x 0.8 = 1.20 OR 1.50 - 0.25 = 1.25? b. RCPS 1.20 x 0.5 = 0.60 OR 0.25 + 0.25 = 0.50?
Interesting write up in the edge weekly. Seems without the kesas disposal one off gain the profit decreased. However there are doing well in London markets and their renewable energy business about to take off.
Mechanism of RCPS is to encourage investor not to redeem it with cash in the first 3 months. So, i guess RCPS will price at least 58 cts in order investor will keep it. You gotto take into account of inflation rate & the opportunity cost. Today 58 cts theoretically is bigger than 1 year later 58 cts. If price too low, people will take cash first. My guessing, definitely no chance the price will go below 1.38.
haha... y is 58 cts ?? not 50 cts ?? ....... let say it ex and mother shares will deduct 20% and not 25 cts each share.... if the mother shares stand abv 1.25 , it really not worth to hold.....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
brendonyeap
1,649 posts
Posted by brendonyeap > 2014-09-09 18:46 | Report Abuse
This is a good stock for long term.