let's calculate, see if you make the right move. say u got back 50 x 0.05 = RM 2500 and 50 x 0.045 = RM2250 total = 2500+2250 = RM4750 use this proceed buy into L&G @ 31sen L&G = 4750/310 = 15000 free units estimate
if u convert them to LA, you paid 100 x 130 = RM13,000 and you have LA = 100,000units @ 13K this equivalent of L&G = 50,000units, this mean 50 x 310 = 15.5K offset your cost = 15.5k - 13k = 2.5k
selling LR you get RM4750, if convert to LA you get 2.5K. like that you have make a RIGHT move on paper. happy for you.
I try to calculate myself as below: holding unit 10,300 shares (with 10,300 LR now)
Case: Get LA & Convert to L&G 10,300 * 0.13 (convert LA) = 1,339 10,300 * 0.13 (convert L&G) = 1,339 Total cost: 2,678 to get additional 10,300 shares
Case: Sell LR & Buy L&G now 10,300 * 0.045 = 463.50 10,300 * 0.310 (buy L&G)= 3,193 (-463.50 earn from LR) = 2729.50 Total cost: 2,729.50 to get additional 10,300 shares
So In my case, subscribe to LA & convert to mother shares will be more worth? Even the difference only < 100 (in included brokerage fees should be > 100).
let say i want back my 10000 share of L&G after i do according to what u say .. i must have 20000 share of LR .. in this case scenario u see m i still taking the advantage .. pls comments ..
noted ,fully understand now , seem like more interesting as long as the price rises . cause i never consider or try to understand conversion b , so the price peg at .31 now same as the Lr (.05 + .26 ) .. and i make up my mind to average at around.28/29 or buy La around .15 /.16 .... or Lr at .03 / .035 .. see whether can get or not ,,,hee hee ... btw tqvm to mr cytew ... thanks
Is the method 2 is true??? If this is the case, I guess everyone will use method 2 as the cost price for LR Method 1:(0.045 + RM0.13 = RM0.175) X 2 = RM0.35 Method 2: 0.045 + 0.13 + 0.13 = RM0.305
for me if i want something with r ,, i will buy on last day or b4 x .. and if in the money will convert asap ..for loan stocks.. 1 percent interest is too low .. cause i already bought at high price so try to find a cheapest way to average down my purchase cost ,, FA not bad what this penny stock ..
@ mun hong, as 4 today ,, i sell Lr and buy mother share ..and immeadiately sit on paper gains base on convertion method a .. but as for method b , if the share price rises , i will earn less ,, so how u thinks
normally the discounted price already factor in during the price when L&G go ex. now it has been normalised.
you see, L&G now @ 31sen, 31 - 26sen(conversion price of ICUL) = 5sen. those buy LR now @ 5sen is market price. those get free LR is considered discounted with 5sen. so, only those shareholder of L&G get this 5sen free/discounted but this group of shareholders buy relatively high price before L&G go ex (>40sen), if buy LR now you r buying market price. no advantage at all.
At this price of 32.5, it is actually only 35.0 sen before EX, i.e 25% discount already, how much more will it drop? It will bounce back to around 35.0 sen easily after LR stops trading on Friday.
Yes, it is moving up to 33.0 sen. It will go higher after LR stops trading tomorrow. If you look at the buyer Qs of LR, means people are seeing the values of this counter.
Sailor Moon says that 1 share of L&G-LA = ½ share of L&G with 5 years ....................... + ½ share L&G-WA to exercise at 26 sen ........................+ 0.0065 sen of interest in 5 years.
So the value of L&G-LA is calculated as follows 50% of the price of L&G ordinary share price + premium/discount, if L&G below 26 sen
Full value of L&G share price minus 13 sen , + premium, if L&G above 26 sen.
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smartly
6,430 posts
Posted by smartly > 2013-09-02 11:44 | Report Abuse
let's calculate, see if you make the right move.
say u got back 50 x 0.05 = RM 2500 and
50 x 0.045 = RM2250
total = 2500+2250 = RM4750
use this proceed buy into L&G @ 31sen
L&G = 4750/310 = 15000 free units estimate
if u convert them to LA, you paid
100 x 130 = RM13,000
and you have LA = 100,000units @ 13K this equivalent of
L&G = 50,000units, this mean
50 x 310 = 15.5K
offset your cost = 15.5k - 13k = 2.5k
selling LR you get RM4750, if convert to LA you get 2.5K.
like that you have make a RIGHT move on paper.
happy for you.