Posted by Mat Cendana > 2016-05-25 10:31 | Report Abuse

No wind, no storm but the price falls... Or maybe this has something to do with the coming quarter results? Some insiders already know and they had just whispered to their closest buddies(?) I'm just guessing, of course. But we have seen this before with various counters.

This may be foolhardy but I'm looking to buy. As soon as the price stabilises. It might continue sliding tomorrow, true. But I will never know for sure what the lowest point is...until after the facts. This won't be a lot though. Just one-third of the allocated capital for Bstead.

Posted by okdoke > 2016-05-25 10:37 | Report Abuse

Hi mat cendana, any opinion at what price to buy for investment? Sorry for FIN 101 question ...expected from a newbie lol. Thanks in advance

Posted by 860000 > 2016-05-25 10:41 | Report Abuse

probably due to 1mdb only... hope the property development n mall result at cochrane there can show to be good in next 1 year and selling more of non-core assets that can't yield good profit

Posted by Mat Cendana > 2016-05-25 11:16 | Report Abuse

@okdoke I hope those who know more about Bstead, like W2CD etc., could suggest a figure. Usually I would also refer to the charts at ChartNexus.com, trying to "see something". Support line especially. But due to the bonus, rights and also recent slide, the charts are broken. This is the lowest price in 52 weeks at least. That is both good and bad. Good because we are buying at a price lower than many others who came in earlier. Bad because...cheap could get cheaper.

But since this is an investment (not trading) where regular dividends are a key consideration, we'd have to buy at some point. When and at What Price? Different people will have different opinions. But with me, my plan is like the comment above - part of the buying will be now. The remaining intended capital will be utilised in the future, depending on how things go.

Posted by Mat Cendana > 2016-05-25 11:24 | Report Abuse

This may be an investment but I'm not keeping to the "Buy and Hold" strategy...hanging on through thick and thin, waiting for things to turn. Even if it takes years. Yes, this often works provided we didn't buy at the highest peak. But it requires a lot of stamina. My father has this staying power and stubbornness. But I don't. My strategy - I'd rather have access to the capital instead of it getting locked up due to paper loss. I would set a stop loss point. If it goes more than minus 5% of my purchase price, I'd sell. It might rebound after that, yes. But it might also get to minus 10%...minus 20%.

Posted by W2CD > 2016-05-25 12:07 | Report Abuse

Since it is a downward trend now, my personal opinion would be to wait it out until the dust settles.

Posted by Subrie > 2016-05-25 12:44 | Report Abuse

I think drop due to OR.

Posted by dompeilee > 2016-05-25 12:46 | Report Abuse

All the oldies who used to boast @ other AGMs that they own Boustead all scr**ed! HahaHA!

Posted by Mat Cendana > 2016-05-25 13:05 | Report Abuse

@W2CD That's prudent advice. And I've just remembered something - the bonus issue. If I'm not wrong, this comes after the rights issue(?) That means there may be another price adjustment. Yeah, staying at the sidelines may be the better option for now.

Posted by Mat Cendana > 2016-05-25 13:26 | Report Abuse

Had just seen a news flash at the Maybank trading platform. The latest quarter results:
Revenue is slightly less than corresponding quarter. Pretax profit of RM36.3 million (RM69.5m). But registered a net loss of RM21.5m (+RM0.1m). Or minus 2.08 sen per share. Dividend of 4 sen (5 sen last year).

Now we know the reason for today's fall.

Posted by W2CD > 2016-05-25 14:26 | Report Abuse

Yep. There will be another price adjustment for the Bonus Issue but there is no effect to the value of your shares since you'll be compensated by the number of bonus shares you are entitled to from the Bonus Issue. Your shares will still be the same value whether it is before or after the Bonus Issue.

Posted by beso > 2016-05-25 14:28 | Report Abuse

free fall is coming

Posted by 860000 > 2016-05-25 16:34 | Report Abuse

i underestimated BSTEAD Heavy Industries losses..

Posted by wisdomtot > 2016-05-25 17:23 | Report Abuse

First time in the red...

Posted by murali > 2016-05-25 17:26 | Report Abuse

Still got div 0.05

Posted by murali > 2016-05-25 17:26 | Report Abuse

I will buy my first bstead share tmr...

Posted by kk123 > 2016-05-25 22:41 | Report Abuse

Boustead getting from bad to worse..the management team shld be fired..

Posted by kk123 > 2016-05-25 22:42 | Report Abuse

LTAT shld be worried...

Posted by hng33 > 2016-05-26 10:09 | Report Abuse

Bought boustead-OR at 18sen

Posted by hng33 > 2016-05-26 10:32 | Report Abuse

Accumulate more Boustead -OR at 17.5sen

Posted by wafu > 2016-05-26 11:22 | Report Abuse

anyone can advise on how to subscribe the right issue? take 1000 shares for example? thanks all

Posted by hng33 > 2016-05-26 12:28 | Report Abuse

Bought last batch of OR at 18sen

Posted by 860000 > 2016-05-26 14:23 | Report Abuse

To wafu.....
If your account is direct trading acc, you will receive letter to your address. Then fill in the form with banker's cheque (should be something like this). Then send the letter back..

Else if nominee acc, just tell broker that you want to subsrcibe

Posted by wafu > 2016-05-26 16:01 | Report Abuse

thanks for your reply 860000, does that means for every 1000 share that we are holding, we need to pay 400xRM2.55=RM1020, then entitled for another 560 shares after everything completed? and stamp duty?

Posted by W2CD > 2016-05-26 16:05 | Report Abuse

Yes, you will have to pay RM1,020.00. When they announce the bonus issue entitlement date, then you will get the other 560 bonus shares. The form will tell you the exact amount to pay for the rights issue.

Posted by 860000 > 2016-05-26 16:12 | Report Abuse

Yes. You will need RM10 stamp duty from post office.

Posted by wafu > 2016-05-26 16:42 | Report Abuse

Thanks guys, really appreciate your guidance

Posted by speedlikecy > 2016-05-26 16:59 | Report Abuse

quick check with you guys, if i holding 1000 shares, need to pay 400xRM2.55=RM1020.
the share become 1400 shares, then end up will be 1400*7/5 = 1960 share?

sell the right issue or subscribe the right issue? which one better? who can do the calculation base on current price?

thanks!

Posted by 860000 > 2016-05-26 17:09 | Report Abuse

it is simple math... now rights price RM0.185... subscribing price RM2.55..
RM0.185 + RM2.55 less than RM2.82
:(
so subscribe is worth more than selling rights

Posted by speedlikecy > 2016-05-26 17:29 | Report Abuse

the current price is after adjustment? mean when the bonus issue entitlement date, the stock price mostly stay at RM2.8 +-?

Posted by W2CD > 2016-05-26 17:31 | Report Abuse

He was asking whether to "sell the OR" or "subscribe the rights". Your math is comparing to "buy the OR & subscribe" or to "buy the share now". It's two different thing.

Posted by 860000 > 2016-05-26 17:33 | Report Abuse

current price is already adjusted for rights issue...
adjustment for bonus issue will be depending on the ex-date settlement price. if let say that day BSTEAD price closed at RM2.80... Then it will be divided by 1.4 and means will be adjusted to RM2.00.

There is no gain or loss from adjustment.

Posted by W2CD > 2016-05-26 17:44 | Report Abuse

Some calculations for your reference: If you have 400 units of OR, means you have 1,000 shares now. Sell the OR: your cost would be RM2,820 (1,000 shares @ RM2.82) less RM74 (400 @ RM0.185) = RM2,746 (for 1,000 shares your cost is RM2.75 per share). Subscribe rights issue: your cost would be RM2,820 (1,000 shares @ 2.82) + RM1,020 (400 @ RM2.55) = RM3,840 (for 1,400 shares your cost is RM2.74 per share).

Posted by speedlikecy > 2016-05-26 17:55 | Report Abuse

I thought the current price RM2.8x is divide by 1.4 already. why the price drop so much last few days? from 3.8 to 2.8

mean if I got this stock 1000share last few weeks ago the price about 3.8, RM3800.
subscribe the right issue, 400xRM2.55=RM1020
total cost is RM 3800+1020= RM4820

ex-date settlement will be 1960 shares at price around RM2.8/1.4 = RM2
the share worth 1960xRM2 = RM3920.

mean paper loss RM4820-3920 = around RM900?
is this correct?

Posted by W2CD > 2016-05-26 18:13 | Report Abuse

Your calculation is very confusing. Btw, for every 1,000 shares, you will have 400 rights shares to subscribe and a bonus of 560 bonus shares = 1,960 shares all together. Hence your calculation already included the bonus, where else our calculations is only up to the rights issue.

Posted by 860000 > 2016-05-26 18:15 | Report Abuse

yes boss

Posted by W2CD > 2016-05-26 18:39 | Report Abuse

If you want to know the adjustment, all you have to do is find out the price of the share price prior to the adjustment, say RM3.30. The adjustment will be RM3,300 (1,000 shares @ RM3.30) + RM1,020 (400 shares @ RM2.55) divide 1,400 shares = RM3.08 (ex-right). So since the price is trading at RM2.82 now and assuming it stays there, the bonus adjustment will be RM3,948 (1,400 shares @ 2.82) divide 1,960 shares (1,400 shares + 560 shares) = RM2.01 (ex-bonus).

Posted by speedlikecy > 2016-05-26 20:02 | Report Abuse

Question:if hold 1000 share and subscribe right issue 400 share, after ex-bonus adjustment, the share price =Rm2.01,
1960shares worth 1960xRM2.01=Rm3939.6, correct?

Posted by W2CD > 2016-05-26 20:19 | Report Abuse

Yes.

Posted by Angielim9955 > 2016-05-26 20:58 | Report Abuse

ACTUALLY i THINK THE FAIR SHOULD BE 2.70, BASE ON FUNDA STRONG

Posted by beso > 2016-05-26 21:14 | Report Abuse

very likely below 2 after ex bonus

Posted by speedlikecy > 2016-05-27 00:09 | Report Abuse

Thanks for the answer :)
Angielim, 2.7 is after ex bonus? XD
Beso, like that gg :(

Posted by W2CD > 2016-05-27 09:46 | Report Abuse

If the fair value is RM2.70 per share, then at the trading price of RM2.01 (ex-bonus), the share is undervalued. That's an approximate 35% gain on investment.

Posted by hng33 > 2016-05-27 10:43 | Report Abuse

YESSSSSSSSSSS GOOOOOOOOOOOOOOOOOOOOOOO

Posted by hng33 > 2016-05-27 10:50 | Report Abuse

Selling Bsd-OR at 21-21.5sen, lock in 20% contra profit first

Posted by hng33 > 2016-05-27 11:03 | Report Abuse

Done...lock in all contra profit, free up capital

Posted by Angielim9955 > 2016-05-28 02:52 | Report Abuse

speedlikecy , W2CD
hi team, FGV last time also at 5 ringgit and now only 1.3 .
so maybe , I say maybe only , hope wont la, all the best

Posted by 860000 > 2016-05-28 11:45 | Report Abuse

From my observation, boustead problem is at its Heavy Industries. If they able to solve the problem, other businesses are okay

Posted by W2CD > 2016-05-30 11:56 | Report Abuse

I think you are not that far off. RM2.70 per share is fair in my opinion. Just my 2 cents. I could be right, I could be wrong. It depends on what assumptions you made.

Posted by 860000 > 2016-05-30 11:57 | Report Abuse

another way to average down buying price... sell your bstead shares now... buy OR to convert to mother shares... difference about 10sen