Friendship

Opportunity to make some good profit!

I know most people not so keen to look at longer term (3 to 5 years). Insas Preference shares is out today traded.

It has the following profile:

- Non-Convertible;
- Redeemable at RM1 after 5 years;
- Dividend of 4% payable every half-yearly;

The preference shares is offered at RM1.00 with 2 warrants attached for every preference shares purchased.

During the last 1-1/2 months, I have been asked about what will happen to the price of the preference shares as seemingly its 4% dividend is not attractive. I knew that it would have dropped below RM1.00. In fact, I thought that RM0.90 is a good price to even purchase for those whom would want to hold it longer for the dividends and lower entry price.

Today, upon opening it dropped to RM0.795 and as at this time of writing, it is at RM0.82. Just a note at RM0.82 and with brokerage fees paid, one's return is at 8.652% for 5 years (see below).


Purchased at RM0.82 with brokerage at 0.42%

Obviously, it is not too shabby at all, assuming we are confident that Insas can pay its dividends and repay the RM1 after 5 years. I am confident.

Think of it, if you are paying 5% for your housing loan or your car loan, do not be a smart-Alex to pay them off early.

Note: Anything that you do is at your own risk.

Just a note, at RM0.90, Insas-PA's return is at 6.43%. Well, if you look at it, is below what EPF gave last year!


If purchased at RM0.90


Posted by felicity at 2:04 AM
http://www.intellecpoint.com/2015/03/insas-pa.html

2015-03-03 16:14

hoplanner

This issue of Insas pa has unique feature like a double edged sword. You can own Insas mother shares by converting this PA, if it is trading below Insas price. On the other hand pa holders get to receive a half yrly dividend of 2% until 2020.

2015-03-04 23:39

Koay Yi Chuan

PA can't be converted.

2015-03-05 18:36

hoplanner

Yes, pls read the prospectus or the pa profile.

2015-03-05 19:08

gweilo

Yes PA can be used to convert a warrant at RM1 to a mother share with no cash outlay,

2015-03-05 22:27

Tom

should buy it earlier, aiyo~

2015-03-06 19:46

Man Kit

1 pa+ 1Wa = 1 insas. Pls read.

2015-03-07 09:34

spermwhale

You are right man. PA will have a value close to 1 later as it can be purchase for conversion to mother share.

2015-03-07 10:04

spermwhale

No worry about PA. As they say life goes on. Nearing repayment time if the company have no cash , call for right issue as they did for mas rps which was sold at lowest 63 sen to a maturity of rm 1.

2015-03-07 10:11

imoogi99

Datuk take some free cash by selling WB and buy PA. Good strategy.

2015-03-07 16:02

rica7894

Insas-PA 拥有以下优点：
-享有每年4%的利息回酬 = 4 sen per share 以 Rm1.00 发行价计算。
-五年后会被赎回。赎回价格为Rm1.00 （如果没有任何变卦）
-相等于五年内将会获取共 Rm0.20 的利息。

For example：本钱Insas-PA 股价（Rm0.88）

<五年回酬 （Rm)>
$$$$利息回酬$$$$ <Rm0.20> plus 资本增值$$$$ <Rm0.12>
五年总回酬 <Rm0.20> plus <Rm0.12> = Rm0.32 (36%), 平均每年回酬 7.2%.
这回酬不会很出色，但应该是很稳定.
注：$$$$资本增值$$$$为五年后，赎回价格为Rm1.00 所带来的潜在回酬。

2015-03-10 13:13

wildkid

anyone can give the link for this prospectus insas-pa? by the way, it's that still can enter with this price which already shoot for 70% since 30cents.

2015-03-31 08:11

imoogi99

Insas-pa was never at 30sen. Shareholders of insas purchase it at RM1.00. If you buy now at 88sen , it will matured on 25 Feb 2020 and you get back RM1.00 on maturity. In between you get 4sen paid annually. So worth to buy??????.....you decide.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1890613

2015-04-02 12:21

hoplanner

Whent is the 1st interest payment due?

2015-04-13 22:28

imoogi99

Pay 2 sen every 6mths....so 1st payment expected in August.

2015-04-13 22:54

imoogi99

Interesting development here....how high can it go? Remember that you will get RM1 when it matured in 2020. In between you get 4%(4 sen) annually. On top of that you can surrender your PA+Insas-WB to get mother share in the future. So how high can it go?

2015-04-14 12:00

imoogi99

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1935281

2.3mil shares traded on the 14th purchase by the big boss.

2015-04-16 20:30

Fat Cat Tim Buddy

wa this pa march 3 only listed, but payment date on 30 Jun 2015? i thought it gonna be 6 month from march 3, like this also can ah?
so this year they gonna pay 4 cents? i dont care la as long as money masuk pocket kikikiki , if next year they redeem this pa back then it gonna be better kikikiki..

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4747657

2015-05-22 23:44

ccs999

Hi Fat Cat Tim Buddy, I tot this PA is giving 2cents each times, one year two times? So now they change to one year one time direct 4 cents or what? Thank you. Regards, Chua.

2015-05-23 05:48

tomjohor

Remarks :
In accordance with the Articles of Association of Insas Berhad, the RPS shall entitle the RPS shareholders to receive a cumulative preferential dividend of 4.0 sen per annum payable semi-annually in arrears. The first preferential dividend is pro-rated for the period from 26 February 2015 (date of issue) to 29 June 2015.

2015-05-23 07:41

Fat Cat Tim Buddy

they still giving 2 cents each time, just dat i thought the dividend payment date going to be 6 months from march 3 ( pa listed date )

but the latest announcement stated that the payment date is 30 Jun 2015, if so, then the second 2 cents dividend payment date going to be at 31 Dec 2015, which make the total dividend we going to received in 2015 = 4 cents.

2015-05-23 09:03

Fat Cat Tim Buddy

wtf not 2 cents , it is only 1.3589 cents

2015-06-30 16:32

Vizhai

2cents is before tax?

2015-07-01 15:57

Yong Chian Haw

does Insas-PA entitle for the 1sen interim dividend?

2016-11-24 10:50

EngineeringProfit

Come....come.....bullish counter

2018-01-12 17:14

551724166

cabut @ RM1.
26% of return including dividend^^

2019-05-17 11:53