Mother share: 1.09 but Esos listing at 0.67 so still have a room for mother share to grow coz usually mother price should higher usually double than ESOS.
In simple calculation- in the case of mother share is double than esos this means Pantech still have 15 cents to go..(0 esos price:0.67 : mother price 1.20). By the way share price is influence by other factor such as economy and political and external factor likr Djia and other markets performance.
The main catalyst to drive this share price now days is financial result. if investor expect this company will release a good new- than Pantech will move upward today. Another factor is- last nite DJIA - still in a stable mode .. So no negative impact to Klse today (hopefully). But from the chart- our KLSE is at new high - but with no a good sign.. look like any time it will crash because from my view our KLSE move up in this few days only due to advance in 'blue chip' not by 2nd and 3rd liner(broad base).
Date of announcement is yesterday but date of Felda bought the share is on 16 & 18 July 2013.. (last week) pls read and understand it carefully. your info will mislead others..
foreign fund inflow malaysia again..KLCI should stand above 1800 for awhile at least before raya.at current price of 1.09-1.15,pantech still most undervalued stock.hold it and collect some if drop bit.
KPF pays 15-20% dividend to its members annually...They have to ensure that they achieve minimum yield of a certain percentage to pay their members attractive dividend....I mentioned quite a few times that are block buyers and an institution eying on pantech stocks.....There could be more block buyers coming in....Therefore I am of the opinion that 2.60 is not impossible...Pantech is a very good stock for medium term....Judge yourself....cheers...
No offence, but I don't think you know your stuff regarding ESOS and you all got the whole concept wrong. The exercise price of the ESOS (in this context, 0.670) is usually based on the price of the share or the recent average price of the share at that point in time.
For the one that is being announced (0.670), it was most probably issued around 1 year ago. At that time, the price is 0.60 to 0.70.
For employees to gain the maximum out of it, they obviously have to hope the price of the share goes up as much as possible after 1 year. Indirectly, it encourages employees to work hard and contribute their best to the company. Also, it works as an incentive to retain staff.
For this year, the employees at PANTECH will be given new ESOS allocations, maybe 1.10? They will be able to exercise this 1 year from now.
So, if the price of the share is 2.00 by July next year, they will stand to gain quite a lot again. Those that haven't exercise their previous ESOS (the 0.670 option), will gain even more. That being said, the share could also retract (maybe 0.80 by July next year) and the ESOS is deemed as valueless.
ESOS allocation is granted based on the position and also the performance (company wide and individual) for the previous year.
Thus, the statement that ESOS is usually double the share price or that it can be bought by employees is not true at all.
Normally ESOS works in such a way that the employee can only sell their ESOS after one year and their ESOS can last for about 5 to 10 years. For example if I am given the ESOS for pantech at 1.09 today at Jul 24 2013 it means that I will entitle the ESOS and exercise it after Jul 24 2014 and I have the right to exercise it until 2023. What I can do after Jul 24 2014 is that I can sell the ESOS without buying the ESOS if the mother pantech share is greater than 1.09 lets say it is 2.00 by then, my profit is (2.00 - 1.09) X the number of the shares that I have entitled after a year. If I want to convert the ESOS to the mother share then I only pay 1.09 after Jul 24 2014 even though the mother share is 2.00 then. Hope this is clearer now about ESOS.
@ Steve Jub Well, technically, you can't buy it and it's granted. If one is a new staff and haven't perform well, chances are he/she is not entitled to any. And for a start, that company must have an ESOS incentive schemed in place. Not all public listed companies have ESOS schemes as a form of motivation or retention plan.
@ ykinvestor Good explanation. You've covered most of it. Worth to highlight that ESOS can be of no value if the current price is below the exercise price. In such a case, nobody will exercise their ESOS then as they are better of buying it directly on the market floor.
Also, senior top management are given compensation packages which are heavily skewed towards ESOS schemes and bonus grants. Thus, they are really fired up and motivated to bring the company to greater heights. Compared to their fixed salaries, ESOS and bonus grants make up a big chunk of it.
Posted by optimusrich > Jun 28, 2013 12:29 PM | Report Abuse
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Posted by cheebai > Jun 27, 2013 10:16 PM | Report Abuse
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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....
Ong Wee Ming
15 posts
Posted by Ong Wee Ming > 2013-07-23 14:47 | Report Abuse
why tp 2.6?