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Preparing for tougher times ahead, the move is to boost its balance sheet and pursue organic growth.
Yesterday its px shed with tendum with other bks as well, no distinct variant after the R announcement. Its last gap was marked on 5 Dec at 9.15. D trend now is downward, esp in this long festive season.
If market continue gloomy, u may hv good bargain for the R after X. As for d mother, same principle applies, if economy worsen, no strong expectation for all stocks to raise, in time ahead.
Above, no call for anything, sharing only. Cheers.
Because there is a steep discount for the right shares, naturally no one will sell you the rights for nothing. So I agree the rights entitlement will be priced near the difference between the mother share and the right issue price. Thus if you intend to invest in DBS, you should buy now not after the right issues, unless you think that the ex-rights will be far cheaper than $8.00 per share.
Experience with past rights issues, it is not good to buy now as the price of mother share is being artificially propped-up by the rights underwriter. Take out the props after 31 Dec, the net fall will be much more. Better to buy after 31 Dec for those keen.
Any major difference between right and shares?
most of the people seems not to have good sentiments to buy the rights.
It is cheaper to buy now, otherwise you may have to buy the rights entitlement which would probably trade (current px $9.30 less 5.42) $3.88.
rabbitfoot ( Date: 23-Dec-2008 11:39) Posted:
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When is DBS Rights trading ? Is it better to buy the rights from the market instead of the mother shares which comes with rights ?
Probably they thought about the market situation. From my rough calculations, nil-paid rights should be traded at above $2.30 to $2.60 each. Maybe we have to consider this?.
If u are value invester, dont invest in what u dont undersatand...but y this one?...there are so many for you to choose definitely..this one is a bit weird....i once deposit 50K and they call me to declare on a form...but not for other..
DnApeh ( Date: 23-Dec-2008 09:53) Posted:
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They have to cause they're in the same boat...if DBS's price sink, so will they. Tho, their tp isn't unreasonable but the duration counts. Hmm...Right issue a $5~ is way too low.
Laulan ( Date: 23-Dec-2008 11:07) Posted:
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UOBKayHian analysis report calls for a buy with target price: $13.56 taking into account the rights issue at 1 for 2.
The gov. needs money. They are a lender of last resort. Companies in need of cash will have to exhaust all other options before turning to sugar daddy. I would be interseted to know wat they'd do to CSM who is likely to bleed for several quarters to come.
AK, just look at the transport issue- still want to raise fares and claim that the last fare hike has nothing to do with crude oil prices. I feel like giving him a tight slap!!!!
AK_Francis ( Date: 23-Dec-2008 01:59) Posted:
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I read the documents a few times, still don't understand what is the reason for raising the $4 bil leh. They only say not for this and not for that. The reason is to increase market cap becos investor nowadays like companies with larger caps. Like that doesn't make sense(cents and dollars as well) to me, the small investor leh.
The only loophole is this: odd lots. If I only buy 1 lot of mother share, then they will give me half lot of rights. To round off the odd lots, they may in their kindness, give me another half lot of rights. Like that better to buy 1 lot each for yourself, then another for your father, then another for your mother, and so on....
Not vested yet, still thinking.
got an interesting "comparison" here:
DBS=BOFA/Merrilynch
UOB=CITIBANK
OCBC=Barclays Bank
???? hee....*JUST FOR LAUGH* :D
oh dear....
dilution will be like this, assuming the price is $9 on Dec 28, $9+$9+$5.42 = $23.42/3 = $7.80 ?!
So, come January 2, 2009, DBS would be hovering around $7.80 !!!!! oh dear... must be the high notes causing them some damages?
| RIGHTS | 29 Dec 2008 | 31 Dec 2008 |  |
OFFER OF 1 FOR 2 @ $5.42 |
dilution will be like this, assuming the price is $9 on Dec 28, $9+$9+$5.42 = $23.42/3 = $7.80 ?!
So, come January 2, 2009, DBS would be hovering around $7.80 !!!!! oh dear... must be the high notes causing them some damages?
In trading, offer Right Issue, for good coy, in bull run is definietly good prospect. Otherwise, it could be a warning that coy need cash for turning over the hard time.
Strange, gov got 2 b standby to assist the needy. Why use Right issue leh?.
Will there be a possibility that not all new shares will be fully subscribed?
DBS will find support at $5.42, at least there is a base now, and it won't drop to penny stock level (below $1), in order for the rights to be in the money and subscibed. My view is it will trade between $8 to $10 in the short term until the rights expire, then it will be a $7 to $8 stock.
It has started to show alittle colour...
knightbridge ( Date: 25-Nov-2008 18:13) Posted:
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Read : http://www.sharejunction.com/sharejunction/rssBloggersCornerFeed.htm?id=0
I think it is to raise capitals for tier1.
rights normally are not welcome for retail investors (esp during bears) as it costs money ==> sell now or sell the rights later on
Can wait a while. Just my opinion.
Look carefully, today's candle is white, with high volume.