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In my view, this is a bull-trap and a sign of dead-cat-bounce.
If shortists are to cover shorts, it would be this week. Next week Tues is xmas, Mon will be half day trading. So left 26th and 27th the last day.
counter ( Date: 18-Dec-2012 17:12) Posted:
In my view, this is the way it should be. It would a lousy strategy for longists to push the price all the way up in one day.
eurekaw ( Date: 18-Dec-2012 17:02) Posted:
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In my view, this is the way it should be. It would a lousy strategy for longists to push the price all the way up in one day.
eurekaw ( Date: 18-Dec-2012 17:02) Posted:
gapping down at closing?
New123 ( Date: 18-Dec-2012 16:54) Posted:
| is a gd time to sell if u are into profit. think it will go much lower after ex.rights . seems like a dead cat bounce , dont think it will cont up trend... |
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Can someone help explain what it means if one currently holds 15 lots of Olam in simple term with examples on the entitlements and the amount one has to folk out and the benefits. Thanks
eurekaw ( Date: 18-Dec-2012 17:02) Posted:
gapping down at closing?
New123 ( Date: 18-Dec-2012 16:54) Posted:
| is a gd time to sell if u are into profit. think it will go much lower after ex.rights . seems like a dead cat bounce , dont think it will cont up trend... |
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gapping down at closing?
New123 ( Date: 18-Dec-2012 16:54) Posted:
| is a gd time to sell if u are into profit. think it will go much lower after ex.rights . seems like a dead cat bounce , dont think it will cont up trend... |
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Agree. However, although this is generally the case, it is less so in Olam's case. In my view, the rights issue of bonds was designed mainly to squeeze short sellers. Therefore, for it to be effective, the return must be relatively more attractive to induce shareholders to take up their rights. Shareholders will lose out if they do not take up their rights. If the objective of the rights issue was solely to raise fund to ensure survival, Olam could have done it in the equity market.
tiancai007 ( Date: 18-Dec-2012 16:47) Posted:
The higher the yields the risker of defaulting. Hope u know the risk before exercising to buy the bonds. Looking at Greek bonds u will know. Corporate bond sld be the same is'nt it?
Richardus ( Date: 18-Dec-2012 16:28) Posted:
Thanks, counter! Appreciate your comment! How do you invest in those bonds you mentioned? (sorry i'm inexperienced with bonds). Cheers!  |
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Good info, indeed! Thanks for sharing and offer for contact! Gratitude!
Let me call my banker at UOB and discuss with him first :D
Cheers again!
counter ( Date: 18-Dec-2012 16:43) Posted:
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I invest in bonds through Standard Chartered. Whenever there is a new issue which gives me the return that I expect, my personal banker will give me a call. IPO bonds can be purchased at around 100.025 per lot and the prices usually, but not always, rise over time. IPO bonds in Aussie dollars typically cost A$100 000 per lot. Do let me know if you are interested. I can give you the contact.
Richardus ( Date: 18-Dec-2012 16:28) Posted:
| Thanks, counter! Appreciate your comment! How do you invest in those bonds you mentioned? (sorry i'm inexperienced with bonds). Cheers! |
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Agree. Therefore, I MAY sell my shares the day before the the XR date, but not now.
New123 ( Date: 18-Dec-2012 16:54) Posted:
| is a gd time to sell if u are into profit. think it will go much lower after ex.rights . seems like a dead cat bounce , dont think it will cont up trend... |
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see if it will happen the same on 4 Dec
New123 ( Date: 18-Dec-2012 16:54) Posted:
| is a gd time to sell if u are into profit. think it will go much lower after ex.rights . seems like a dead cat bounce , dont think it will cont up trend... |
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is a gd time to sell if u are into profit. think it will go much lower after ex.rights . seems like a dead cat bounce , dont think it will cont up trend...
Agree. But let us don't get too exicited because it is just the beginning of a long upward trend. Otherwise, we may be overwhelmed with joy later.
The higher the yields the risker of defaulting. Hope u know the risk before exercising to buy the bonds. Looking at Greek bonds u will know. Corporate bond sld be the same is'nt it?
Richardus ( Date: 18-Dec-2012 16:28) Posted:
Thanks, counter! Appreciate your comment! How do you invest in those bonds you mentioned? (sorry i'm inexperienced with bonds). Cheers!
counter ( Date: 18-Dec-2012 16:21) Posted:
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I find the rights issue very attractive indeed. Currently, I hold a few lots of bonds, some from JPMorgan (4.65%), some from Morgan Stanley (7.375%) and some from RBS (13.125%), all in Aussie dollars which give far higher interest rates compared to bonds in Singapore dollars. Among them, the RBS bonds (13.125%) give me the higher return. However, they are currently trading at around 121 which give an effective return of around 7%.
If Michael Dee is right about his calculation, 13% returns on the rights issue of bonds from Olam will be far more attractive. I will take up my rights. |
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Shortists are caught again when Olam dipped temporarily to 1.45 and then rebouded strongly to 1.50 and above
infancybird ( Date: 18-Dec-2012 16:35) Posted:
useful info...now you kow who is covering their short in such a hurry
This post is reproduced from Martin Lee @ SG, a portal covering financial news in Singapore. The entire post can be read here : Olam Rights Issue Dates
Olam has been given in-principle approval by SGX for their rights issue, subject to certain conditions.
The key dates for Olam shareholders to take note for the rights issue are:
Last date of cum rights trading : 27 December 2012
Commencement of ex-rights trading : 28 December 2012
Expected lodgement of offer information statement :2 January 2013
Commencement of Rights offer period : 7 January 2013
Trading period of ?nil-paid? rights : 7 to 15 January 2013
Close of Rights offer period : 21 January 2013
Issuance and crediting of Bonds and Warrants : End January/Early February 2013
Listing and quotation of Bonds and Warrants (as separate instruments) : End January/Early February 2013
Every 1000 shares owned will entitle the shareholder to subscribe to 313 Olam bonds with face value of US$1 each. If taken up, the 313 bonds will also come with 162 warrants, with each warrant carrying the right to subscribe for one new Olam share at an exercise price of US$1.291. |
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I invest in bonds through Standard Chartered. Whenever there is a new issue which gives me the return that I expect, my personal banker will give me a call. IPO bonds can be purchased at around 100.025 per lot and the prices usually, but not always, rise over time. IPO bonds in Aussie dollars typically cost A$100 000 per lot. Do let me know if you are interested. I can give you the contact.
Richardus ( Date: 18-Dec-2012 16:28) Posted:
Thanks, counter! Appreciate your comment! How do you invest in those bonds you mentioned? (sorry i'm inexperienced with bonds). Cheers!
counter ( Date: 18-Dec-2012 16:21) Posted:
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I find the rights issue very attractive indeed. Currently, I hold a few lots of bonds, some from JPMorgan (4.65%), some from Morgan Stanley (7.375%) and some from RBS (13.125%), all in Aussie dollars which give far higher interest rates compared to bonds in Singapore dollars. Among them, the RBS bonds (13.125%) give me the higher return. However, they are currently trading at around 121 which give an effective return of around 7%.
If Michael Dee is right about his calculation, 13% returns on the rights issue of bonds from Olam will be far more attractive. I will take up my rights. |
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useful info...now you kow who is covering their short in such a hurry
This post is reproduced from Martin Lee @ SG, a portal covering financial news in Singapore. The entire post can be read here :
Olam Rights Issue Dates
Olam has been given in-principle approval by SGX for their rights issue, subject to certain conditions.
The key dates for Olam shareholders to take note for the rights issue are:
Last date of cum rights trading : 27 December 2012
Commencement of ex-rights trading : 28 December 2012
Expected lodgement of offer information statement :2 January 2013
Commencement of Rights offer period : 7 January 2013
Trading period of ?nil-paid? rights : 7 to 15 January 2013
Close of Rights offer period : 21 January 2013
Issuance and crediting of Bonds and Warrants : End January/Early February 2013
Listing and quotation of Bonds and Warrants (as separate instruments) : End January/Early February 2013
Every 1000 shares owned will entitle the shareholder to subscribe to 313 Olam bonds with face value of US$1 each. If taken up, the 313 bonds will also come with 162 warrants, with each warrant carrying the right to subscribe for one new Olam share at an exercise price of US$1.291.
Thanks,
counter! Appreciate your comment! How do you invest in those bonds you mentioned? (sorry i'm inexperienced with bonds). Cheers!
counter ( Date: 18-Dec-2012 16:21) Posted:
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I find the rights issue very attractive indeed. Currently, I hold a few lots of bonds, some from JPMorgan (4.65%), some from Morgan Stanley (7.375%) and some from RBS (13.125%), all in Aussie dollars which give far higher interest rates compared to bonds in Singapore dollars. Among them, the RBS bonds (13.125%) give me the higher return. However, they are currently trading at around 121 which give an effective return of around 7%.
If Michael Dee is right about his calculation, 13% returns on the rights issue of bonds from Olam will be far more attractive. I will take up my rights.
Richardus ( Date: 18-Dec-2012 16:05) Posted:
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I find the rights issue very attractive indeed. Currently, I hold a few lots of bonds, some from JPMorgan (4.65%), some from Morgan Stanley (7.375%) and some from RBS (13.125%), all in Aussie dollars which give far higher interest rates compared to bonds in Singapore dollars. Among them, the RBS bonds (13.125%) give me the higher return. However, they are currently trading at around 121 which give an effective return of around 7%.
If Michael Dee is right about his calculation, 13% returns on the rights issue of bonds from Olam will be far more attractive. I will take up my rights.
Richardus ( Date: 18-Dec-2012 16:05) Posted:
Furthermore:
Sunny Verghese, who holds 4.7%, intends to exercise his rights entitlements as well, according to the following article http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=%7B672434590-15269-9870095848%7D
the author continues, " Now that raises an interesting question: Why should Mr Verghese want to put up US$33 million of his own money into Olam if the company is a sinking ship - destined to fail, as Mr Block puts it?"
Richardus ( Date: 18-Dec-2012 15:53) Posted:
Question as per below to everyone for a healthy discussion:
From what I've just read... Every 1000 shares owned will entitle the shareholder to subscribe to 313 Olam bonds with face value of US$1 each. If taken up, the 313 bonds will also come with 162 warrants, with each warrant carrying the right to subscribe for one new Olam share at an exercise price of US$1.291
How attractive will this rights issue be to shareholders and why? Is it viewed as a generous offer? |
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the next few days will be very interesting
when more institution join in to buy Olam.
Furthermore:
Sunny Verghese, who holds 4.7%, intends to exercise his rights entitlements as well, according to the following article
http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=%7B672434590-15269-9870095848%7Dthe author continues,
" Now that raises an interesting question: Why should Mr Verghese want to put up US$33 million of his own money into Olam if the company is a sinking ship - destined to fail, as Mr Block puts it?"
Richardus ( Date: 18-Dec-2012 15:53) Posted:
Question as per below to everyone for a healthy discussion:
From what I've just read... Every 1000 shares owned will entitle the shareholder to subscribe to 313 Olam bonds with face value of US$1 each. If taken up, the 313 bonds will also come with 162 warrants, with each warrant carrying the right to subscribe for one new Olam share at an exercise price of US$1.291
How attractive will this rights issue be to shareholders and why? Is it viewed as a generous offer? |
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Agree. Even if the short sellers have started covering their position, they will still have a long way to go.
As of end-June 2012, Olam’s total number of issued shares is 2,442,409,869. The free float owned by public shareholders accounts for approximately 55.0% of the total issued share capital, which is approximately 1,343,325,428 shares. The indicative lending pool at CDP actually dropped to zero today. If the shortists choose to fight on, they may need to fight by throwing their machine guns at the longists very soon.
Future ( Date: 18-Dec-2012 14:45) Posted:
I am guessing the short-covering has not commence yet. Maybe the volume is due to new funds building fresh positions since there's zero shares for lending from CDP.
News:
Olam is up 5.4% at $1.47 in strong volume amid a series of large trades, suggesting institutional interest. Olam’s management is currently on an investor roadshow in the U.S., according to the company.
An analyst says this may be driving interest in the shares, especially ahead of the rights issue. The last day of Olam’s cum rights trading is Dec. 27. The stock’s Dec. 4 peak at $1.71 likely offers a near-term cap.
http://www.theedgesingapore.com/the-daily-edge/business/42017-olam-54-management-holding-investor-roadshow.html |
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