Wednesday, March 3, 2010

supermax

the news today that supermax propose 1 for 4 bonus shares confirms my banker's friend rumour on this issue. But even with that i will still opt to sell out. My buying into supermax is purely trading driven and i not intend to hold it long term. Reason being my current strategy is to buy high growth company with high dividend, of which supermax does not meet the latter criteria

The rationale behind the bonus issue was to increase the capital base of the company to a level which would better reflect the current scale of operations as well as enable shareholders to have increased equity participation through greater number of shares. Let's see whether this bonus issue will have the same effect observed on Haio, where it stock has kept surging up to RM10.7 with PE of 17x at the moment owing to its bonus 1 for 5 ex date 16 March

mean while NTPM continue to have its major shareholder buying its stock.

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