I had written
about Malton-LA loan stock in Dec 2013 and I think it is fair for me to post
again in view of the increase in price in case some people are mungcaacaa.
End of FY (July)-
Redeem at RM1.00
2014 10%
2015 15%
2016 20%
2017 25%
2018 30%
If you
refer to the table picture, you will notice that in July this year, those who
are still holding Malton-LA, 45% of the holdings/shares will be redeemed.
Malton
share price RM1.59
Malton-LA
share price RM1.58
Assuming price
does not change until July, someone holding 1000 units of Malton-LA worth RM1580,
45% (450 shares) will be redeemed at RM1.00 (RM450) and balance 550 shares @
RM1.58 worth RM869 at market price, new total worth only RM450 + RM869 =
RM1,319. Immediately lose 16.5%.
This also
will happen to those who buy Malton-LA before the ex date in July. Be careful.
What can we
do?
It really
depends on what we think.
* For those
who want to hold long-term, may consider to convert LA to mother shares now or
anytime from now until about 3 weeks before the ex date in July. Conversion
takes time, please check it out when is the last date.
Some may
sell LA now and buy mother. But may lose out on the price difference, example
sell LA at RM1.58 but buy mother at RM1.59 or RM1.60 depends on the market
price. Consider brokerage also. May prefer sell and buy because no need
troublesome to convert.
* For those
who are planning to sell anytime now, please be careful and make sure to sell before
about 3 week from ex date in July.
* When you
do conversion, make sure you have more than sufficient time and make no
mistake. If you make mistake, eg forgot to send or write wrong CDS number, you
may end up not converting and lose 16.5% as explained above.
* Those
short term kaki thinking to buy Malton and consider buying the mother and not
the LA when very near to the expiry.
You also
have to consider the following:
Malton
dividend, LA interest rate, brokerage, troublesome of converting, ex date,
Malton potential, etc.
Different
people may need to take different actions. You need to check with your
remisiers/dealers.
Conclusion
is to be careful of the 45% redemption. I share with the info that I have
because I don’t want people to lose out. I may be the one that mungcaacaa and
maybe make some mistakes or totally wrong or my info is outdated, that’s why
you need to check with your remisiers/ dealers.
By the way,
those who hold Malton-LA from December 2013 until now, 80% gain in 3.5 years,
price increase + the interest received.
I share
Good News. Those stocks that I share in my blog normally will go up boom boom
boom, unless I have mentioned in my sharing that some will be moderate. Off
course, some also down.
Must always
remember, nothing great about me, is the stock market that is easy for everyone
to make money, cincincaicai also can make, either make moderate or high. Again
and again, nothing special about me, plenty of sifu out there, I only
cincincaicai share only. Always check with your remisiers/ dealers.
Although we
cincincaicai, but some basic we need to learn, eg warrant expiry date, dividend
vs dividend yield, T+3, PE ratio, bid(buy) and ask(sell), etc.
I share
good news and I sometimes I share alert, eg Malton-LA.
Don’t miss.
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Thanks
http://politemarket.blogspot.my/2017/05/dear-malton-la-buyer-or-holder-please.html
