@slstock wrote:Hope my calculation is wrong. This will blow all the Investors believing in findamentals driven market.
Say some one bought Wapo.N at RS 3000 ( for argument sake).
1) Initial cost of investment = Rs 300000
2) According to "Proportion:- Seventy Five (75) new ordinary shares for every two (02) shares held
Issue Price:- Rs.20/- "
He/She would receive = 100*75/2= 3750 rights.
3) Rights were trading as much as around rs 2000 in the morning.
For sanity let assume some one sold Rights at Rs500 each.
So Gain from rights = 3750 * 500= Rs 1875000
Total Gain = Rs 1875000- Rs 300000= Over Rs 1.5 Million!!!!
Image some one sold over Rs1000 a right!!!! Gain???
All this for a company with
Quarter EPS = (0.11)
Nine Month EPS = 0.46
NVPS = 21.25
I really hope I am mistaken else this is enough drive the investors holding fundamentals with positive earnign insane. This is CSE.
BTW, you can still sell original shares at Rs 2500. So your gain will be over Rs 1.8 Million.
Can you top that will any nvestoment. Over to you... I am dumb founded.