Currency rates go up and down all d time. If we take a longer term horizon of our investment in Karex, there is nothing to worry abt currency rate fluctuations. Dun b intimidated by mkt speculators who r out to frighten those unseasoned investors.
@sesatn00b, tht's correct. Only then can we benefit from its compounding effect. We need to be disciplined to save and invest long term to see its value grow exponentially like how all Malaysians see their EPF savings grow over the years. Same principle applies here.
Hi. I just want to understand. Why is it that the price dropped so drastically? from 3.96 dropped to 2.66? How does bonus issuance affect the price? Sorry for asking such questions. I'm still very new in the share market.
nick, karex bonus issue...every 2 shares free 1 bonus share If u have bgt 2 shares at 3.96 3.96 x 2 divide by 3 = 2.64(ur cost).U r holding 3 shares now :):)
@Angeline Lew, wat it really means in simple term is:- it's d same when u buy 3,000 shares @ today's price as compared w 2,000 shares @ yesterday's price. At today's price, d share has gone ex-bonus (exclusive bonus) vs yesterday's (inclusive bonus). Hope tis clarifies.
@Johny Khong, does this scenario usually happen whenever a company announces bonus issuance ? Due to bonus issuance, the share price has actually dropped by approximately RM1.30. How does bonus issuance benefit in the long run apart from acquiring more shares? Hope you could share some knowledge with me.
@nickkong, with additional bonus shares obtained, u w stand to gain more from its compounding effect when the price goes back up to 3.96 later. Imagine u hv 20,000 shares @ 3.96 initially. With d bonus issue, u will hv 30,000 shares now. If u invest middle to long term, I'm confident it w go back up to 3.96. By then, yr investment wud be worth 30,000 shares @ 3.96. Do d math yrself.
karex still have more room to growth. Many growth funds bought the shares since its IPO. share price cannot represent the business itself. only who hav patience can get most profit in the end.
the company want to retain some of the profits for expansions and future projects tats is in the pipeline and hence the bonus issue to reward the shareholders.It is of beneficial to short/long term traders/investors.This is my own opinion :):)
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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....
aikinlai
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Posted by aikinlai > 2016-04-13 10:04 | Report Abuse
I guess this time will gonna ex at 4.00