All furniture counters drop, only HOMERIZ up. Within 3 days Ex-Date, price should drop back at least 20%. Take care everybody. May be earlier, before Ex-Date will drop till 0.9
If those folks who are feeling negative about furniture stocks, i recomennend you all should liquidate all your stocks and go to vaccine stocks. I don't know with which furniture stocks your are comparing to. Liihen or Pohuat most probably. But unfortunately Homeritz is more corelated with it's peers like Jaycorp, Mieco and Pecca.
If you look at their performance since August all three of them has more than doubled their stock price. Whereas Homeritz was trading at around 0.65 in August have yet to double. In terms of financial performance and dividend payouts only Jaycorp is better than Homeritz.
So, i reckon there is still much room for Homeritz to go up. I am still buying this morning.
Posted by kens88 > Dec 7, 2020 10:48 PM | Report Abuse
What price are the free warrants worth? First time receive free warrants
Kens88
Depends on closing price on 14th...If close at say 1.10, ex date price of mother would be 1.10 x 4/5 = 0.88, ...WC price less exercise price is 0.88-0.60 = 0.28 (ignoring premium)...premium can be 20% or 30%...however, assuming premium is 10% than about 0.31 c...
So depends on closing price and whether price will head north after adjustment...last time WB went up to 0.31 c on listing when mother was about 0.70 c...at exercise price of 0.54 c, premium was about 50%...
Posted by khawking914 > Dec 8, 2020 11:39 AM | Report Abuse
Gator, do u think current price of WB is tempting ? I realize it is no longer follow the pace of mother share & selling pressure. Your thought
Khaw,
Presently at 0.385 and mother at 1.03, it is in the money with a discount of about 10% so it is attractive, ... based on the 23 m units converted to-date, the adjusted exercise price is about 0.46 on ex date and assuming the adjusted price of mother is 0.88, it should still be in the money with a slight discount. However, I believe one should get additional WB on ex date so that should compensate for the lower discount. In the short term, it depends on closing price...tenure wise it has about 1.5 years, so if price holds than u can convert and sell to profit from any discount...but as we know prices are fickle and volatile...
Posted by Sky8020 > Dec 8, 2020 12:54 PM | Report Abuse
current homeritz-wb holder.. after bonus issues ex date.. will get additional warrant WB right?
Sky...
If my reading of page 15 of the announcement is correct, than yes additional WB in addition to adjusted exercise price. Please read and verify yourself
Last day to buy cum bonus shares and warrants this Friday. People are buying in a frenzy this morning from 10.21am onwards in order not to miss the boat.
I have called up Tricor the registrar of Homeritz on Friday morning. The WB warrant price, exercise price, and number of warrant all will be adjusted after the mother share's bonus issue.
The number of WB warrant will be multiply by 1.25 (free WB warrant) The WB price will be divided by 1.25 (RM 0.39/1.25 = RM 0.31, rounded) The exercise price will be divided by 1.25 (RM 0.54/1.25 = RM0.43, rounded) The exercise ratio remain the same Even after the bonus issue of the mother share, the existing value of the WB warrant remains unchanged after the adjustment above. So it doesnt matter if you buy before or after the bonus issue.
For example:
Situation 1: Before bonus issue
buy 10,000 of Homeriz-WB = RM 0.39 Mother share price = RM 1.03 Exercise value = RM 0.54 Exercise ratio = 1:1 Premium: RM -0.10
If you convert all the warrants before bonus issue, it will be: 10,000 x RM 0.54 = RM 5400 for conversion Cost of warrant: 10,000 x RM0.39 = RM3,900 Total cost = RM9,300 to get 10,000 of mother share worth RM 10300. Profit RM 1,000 The potential fair value gain for this warrant WB is RM 0.10/RM 0.39 = 25.64%
Situation 2: After bonus issue:
If you hold the warrant until the bonus share, it will be: 10,000 existing warrants + bonus 2,500 WB warrant = 12,500 warrants New WB price = RM 0.31 New adjusted exercise value: RM 0.43 New mother share's price = RM 1.03/1.25 = RM 0.82(rounded) Premium: -RM0.08 Cost of conversion: RM 0.43 x 12,500 = RM 5375 Value of 12,500 mother's share = RM 10,250 Profit: RM 10,250 - RM3,900(warrant cost price) - RM 5,375- (conversion cost) = RM 975 Potential fair value gain is RM 0.08/RM0.31 = 25.8%
CONCLUSION: The fair value gain of the warrant are the same, regardless you buy it before or after bonus issue. Slightly higher return after bonus issue due to rounding up effect of exercise price and mother share's price.
My advice is HUGE BUY since it is trading at 10.8% discount to mother's price.
i didnt have CDS account when I spotted this counter..it was around 70-85cents at that time. the moment i have my account, its already RM1. is this the best time for me to buy?
The notice said the Entitlement date should be 15 Dec. .. So the new price should reflect on 16 Dec right? Why today already adjusted to new price? Anyone have info?
Bonus issue of up to 93,753,102 new ordinary shares in Homeritz Corporation Berhad ("Homeritz") ("Bonus Shares") on the basis of 1 Bonus Share for every 4 existing ordinary shares held in Homeritz at 5.00 p.m. on 15 December 2020 ("Entitlement Date")
Liihen highest 4.86, now 3.99, down around 20% Pohuat highest 2.06, now 1.76, down around 17% Homeriz highest 1.11 or 0.85, if down around 17%-20% 0.68 - 0.705 SO now just drop back to reasonable price?
Dear Fren, I supposed beside adjustment, other sentiment also takes into account i.e RM getting stronger against USD means their profit margins somehow will be squeeze coming next quarter if this prolongs..
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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....
gongkia
212 posts
Posted by gongkia > 2020-12-07 08:44 | Report Abuse
focus on the business then :)