cytew: I share the same view, in fact, when it's traded EX next week (27th Aug), it will adjusted to 41.3 sen (BURSA ref price 41.0 sen), then market price will adjust again, if falls to below 40.0 sen, it will be huge cut! Then, when LR is traded, mother price will come down again. Careful.
In my past comments, I want to buy L&G last week. But due to ICULS & lots of Unit Trust funds inside top 30 shareholdings, I choose to delay although I really love the story and fundamentals of L&G
After some research, I believe the best time to buy L&G is next year before 2Q14. Why?
refer to my previous comments, i compared LBS, Huayang & L&G annual report.
(RM'000)
L&G Revenue 130,799 Profit before tax 43,499 (33%) Profit after tax 33,120 (25%) Cash in hand 122,802
LBS Revenue 531,820 Profit before tax 65,056 (12%) Profit after tax 37,160 (7%) Cash in hand 19,957
HuaYang Revenue 306,412 Profit before tax 72,503 (24%) Profit after tax 53,435 (17%) Cash in hand 25,161
I like profit margin of L&G and its fat piggy bank balance. Let me declare, I bought HuaYang last year and made money this year. I never buy LBS.
RM1.50 is long term. could be 3 years and more. It looks healthy to me.
but i can be wrong, after all, huayang price increased a lot in 1 year even after bonus issue. but, i can't complain bcoz i made good profit from huayang
there is very high chance that i am going sell airasia & marco next year(b4 or after CNY) to buy L&G. If L&G remains below RM1.00, it will be a good margin of safety
Yes. just hold till Ex and subscribe the ICULS. Keep it simple...However, on the rights listing day, should arbitrage opportunity exist, you may proceed to switch from mother share to ICULS-LR. But......i believe will be priced in on listing day!
Hi smartguy, do you have any idea how to subscribe the ICULS? I've emailed to HleBroking to ask about this on Monday but don't seem that they want to entertain me, I have not receive any reply. Hope you can give some guide to me.
Dear all sifus, should i buy mother share before EX or wait to buy LR or buy LA on its listing? Which option is more worth to get low cost entry? Thanks in advance!
Dear All, Theoretical Ex price is expected to be at 0.39 based on closing price over the last 4 trading days. Hence, i would assume L&G-LR trading btw 0.1-0.13. In this case, if the mother shares doesn't fall, you are advised to sell all the mother share and buy the LR from the market as well as subscibe for Excessess. And L&G-LA is highly likely to trade at btw 0.25-0.3(5-10% premium)on the 1st listing day!
Hi smartguy, i am new in market, i would like understand what it mean right issue over here? how you calculate the L&G-LR price 0.1-0.3 with expected mother price 0.39.
Based on the 2 method of conversion: 1) surrender 2 nominal value 0.13 of LA and convert into mother share, the fair value of LA should be 0.2(assumed mother price is 0.4) 2) surrender 1 nominal value 0.13 of LA and pay cash 0.13 per share convert into mother share, the fair value of LA should be 0.27(assumed mother share is 0.4)
And hence,there is a disparity of prices between the 2 conversion method, i would assume the price of LA should be trading at around 0.25
And if the LA is at 0.25, the LR should be worth 0.12(0.25-0.13). Hence, is worth to purchase the LR at price anything below 0.12! Tmw is th last trading day, BUY BUY BUY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
now currently I hold the L&G at 0.48... I saw your post previously you expected will go down 0.39. it may a big loss over here... it mean I losing a gap over...Har...
Careful! Theoretically LR is worth about 13.0 sen based on ex-price of 39.0 sen., but LR will always trade in huge discount, simply because the funds and some retailers do not want to subscibe to it, overhang issue and arbitraging issue as well.
LR is the rights form listed on 30th Aug for 5 days only. If you entitled for the rights and do not intend to subscribe it, then you sell it to the market as LR. On the other hand, if you purchase from market, then you pay 13.0 sen for every unit of LR to subscribe the rights and wait for it to be listed as LA on 30th Sept.
I see, So I can subscribe it at 0.13/unit until 6 Sept. If let say I have L&G counters at 2 broker firms, i need to subscribe twice on each broker (HLebroking & Kenanga)?..
So once it is listed at LA on 30th sept, any step to convert it to mother share? Sorry I'm very new to this, hope you can share the information. Thanks a lot!!!
The last date of payment is 13th Sept. Yes, subscribe twice with two dif form. To convert to mother share, get the form from registrar, instruction will be stated in the conversion form.
hlebroking never reply my email regarding this L&G ICULS for 1 week+ for more than 4 emails :( .. I've no idea how can I subscribe now. Am I just need to purchase L&G-LR like normal share when it is listed at 29/30 Aug?
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Posted by keeswee > 2013-08-18 15:37 | Report Abuse
The ICUL is very very attactive. Ascending triangle breakout on Friday.