No no ikan bilos sell lor. Big fish will.buy. aeon japang aldy oqn 60 percent after this sure own 75percent and can privatize at rm50. Ahahaha. Ikan bilis sure lose money. Next time play penis stock. Plzzzz
To subscribe the Iculs is a form of hedging on future price increase; much the same as airline's forward purchase of their fuel requirement. Of course the outcome can go either way. One pays RM 10.99 + RM 1.00 to lock in the mother share's price 3 years down the road. In view of the potential of Aeoncr, it is a portfolio worth locking in.
You don't pay rm10.99+rm1 for the share. You subscribe to the ICULS at rm1 and you can convert 10.99 of your ICULS to the mother share when you like from issued date to 3 years time.
Buy aeoncr. Its going to rm20 soon. Lr going up.cos big fish buying lor. They want increase holding to 75percent then privatise at rm50 3 to5 years down the road
We get LR (right) now. We can then buy LA (ICULS) with RM1 each. After we have LA, we have option to convert this LA to mother share (no cash involved) anytime from day 1 to 3 years time. After 3 years, all remaining LA will auto convert to mother share.
LR or later LA most probably will have premium (over price) because these financial derivatives have gearing ratio to their mother share. For instance you can now see the Aeoncr rose from RM12.44 to RM12.60 (+1.2%), but the Aeoncr-LR has risen from RM0.13 to RM0.20 (+53.8%). So over price is acceptable in this case.
ic...then it seems no difference subscribing to LR/LA....coz after all we already commit capital since day 1....
if i buy mother only, after 3 years, i can pocket capital gain also if i buy LA only, after 3 years, i am forced to conversion to mother. I will realise capital gain also.
Correct me if i'm wrong. LR/LA exercise is mainly to fund AEONCR. That would increase share base of AEONCR by 15%. Somemore AEONCR need to pay 3.5% coupon for these stuffs....
But with more monies now, AEONCR is in better position to utilize proceeds for expansion purpose, hopefully leading to better ROE.
Alex, as an investor if you are confident with the company future performance. Invest in lr/la will make higher return as these derivatives are leveraging as mentioned before. On the other way, it will make more loss if it performs not good. So there is still difference between them.
For company management, yes they issue loan stock to raise fund for capex to grow business.
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....
KClow
1,317 posts
Posted by KClow > 2017-08-11 15:56 | Report Abuse
I bang bals now.