After 3 years, for every 1.32 convert to 1 mother share. For instance, if you bot 132,000 YTL Land-LA, you can convert to mother share at the specific mentioned time frame became 100,000 mother shares( 132,000/1.32) where your conversion price = 1.32 X 0.42=RM0.5544 and compare mother share rm0.91, then expected profit in near future= 100,000 X (RM0.91-RM0.5544)= RM35,560 or 64% profit which have not taken into ICULS interest received. However, if YTL Corp want to privatise YTL Land in the near future, they could offer NTA price(Net Tangible Assets).RM1.10 to RM1.50 = expected profit RM54,560 to RM94,560.
Conclusion:- Very seldom people know to invest loan stocks have bigger returns than mother share. Please invest and dont wait.
This is a suggestion and not use for your investment decision.
If buy 660,000 units YTL Land _LA, conver to mother shares 600,000 / 1.32= 500,000 units and conversion price rm0.425 X 1.32 = RM0.561 compare to current market price of RM0.91 and will earn RM174,500 profit. If mother share go up to rm2.00, you will earn RM383,516 profit, if RM6.00, profit= RM1,150,548. Dont you tihnk easy to become millionaire?
There is a flaw in the calculation. You need 2.64 ICULS to convert to 1 share of ytlland. At .43 sen, the cost of ytlland is 1.135. It is only at the end of conversion period you can make money.
lai81533, just want to clarify something. This YTL Land-LA is listed some where in JAN 2012. So does it mean in JAN 2016 is considered 4th years already? Please advice and thanks.
you are right. invest and wait for next 5 years would have conversion ratio:- 1.32 instead of 2.64 currently. You would make capital gain. Beside this, you would make interest gain . 0.03/0.435=6.45% , now giving 3% (Rm0.015) and next 2 years (RM0.0225) per year.
Interest gain more than FD rate and capital gainmore than usual gain in coomon equity. 70% to 100% capital gain but depend on mother share price few years doqn the road.
lai, "If buy 660,000 units YTL Land _LA, conver to mother shares 600,000 / 1.32= 500,000 units and conversion price rm0.425 X 1.32 = RM0.561 compare to current market price of RM0.91 and will earn RM174,500 profit. If mother share go up to rm2.00, you will earn RM383,516 profit, if RM6.00, profit= RM1,150,548. Dont you tihnk easy to become millionaire?" Why divide by 1.32 to get 500k units for conversion? Current price 0.43 + conversion price 1.32 = 1.75!! Pay 1.75 to get 0.43 market price? Become millionaire?
every 1.32 YTL Land-LA would convert to mother share 1 in next 5 year. Now not to convert because converson ratio is very high 2.64:1 . Now buy for interest gain as company would pay interest every half year 1st 4 year RM0.015, (3.49%=RM0.015/RM0.43)next 3 years RM0.0225 (5.21%=RM0.0225/RM0.43)/and final 3 years RM0.03. (6.98%= RM0.03/RM0.425) = higher than FD rate and now is in year 3. East to become millionaire as my friend did that where he invested loan stock in year 1980s and now he bot property, car all by cash.
faster buy in keep to build up your wealth in future and make million of profits. instead play short term can not see fruits. This is use of SEE FAR CATCH BIG FISH
I am afraid that you are wrong about the conversion ratio. It didnt mention 1.32 conversion ratio. RM 1.32 is conversion price, that you pay for 1 LA convert to 1 YTL Land share. Hope you can show me the paragraph that mention the conversion ratio. Else, your calculation is flawed and misleading.
2577LA YTLLAND-LA YTL LAND & DEVELOPMENT-ICULS Profile for Loan StocksInstrument Type : Loan Stocks
Description : RM496,189,011.50 nominal value of ten (10)-year 3.0% stepping up to 6.0% irredeemable convertible unsecured loan stocks ("ICULS") at 100% of nominal value of RM0.50 per ICULSListing Date : 04/11/2011 Issue Date : 31/10/2011Issue/ Ask Price : MYR 0.5000 Issue Size in Currency : MYR 496189011.5000Maturity Date : 31/10/2021 Revised Maturity Date : Exercise/Conversion Period : 10.00 Year(s) Exercise/ Strike/ Conversion Price : MYR 1.3200Revised Exercise/ Strike/ Conversion Price : MYR 0.0000Exercise/ Conversion Ratio : 2.64 ICULS : One (1) ordinary share of RM0.50 each in YTL Land ("YTL Land Share")Revised Exercise/ Conversion Ratio : Mode of Satisfaction of Exercise/Conversion Price : Tendering of securitiesSettlement Type/ Convertible into : Physical (Shares) Remarks : Please note that the conversion price stated in this announcement is applicable only for conversion at any time from the date of issue up to the fourth (4th) anniversary. For conversion at any time after the fourth (4th) anniversary of the date of issue up to the seventh (7th) anniversary, the conversion price is RM0.99. The corresponding conversion ratio is 1.98 ICULS : One (1) YTL Land Share. For conversion at any time after the seventh (7th) anniversary of the date of issue up to the maturity date, the conversion price is RM0.66. The corresponding conversion ratio is 1.32 ICULS : One (1) YTL Land Share.
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....
chankinwah
25 posts
Posted by chankinwah > 2014-01-28 12:33 | Report Abuse
whats the coupon rate for this icul?