FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Dipped Products, Haycarb well-positioned to benefit
by MarketWch Today at 5:11 pm

» B P P L HOLDINGS PLC (BPPL.N0000)
by Beta1 Today at 4:22 pm

» DIPD/HAYC/HAYL
by Mr. X Today at 3:44 pm

» GLAS will be winner with Super Gain.
by jason12 Today at 2:08 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Today at 12:18 pm

» WIND FORCE WIND
by stockchaser Today at 11:17 am

» What will happen tomorrow?
by madukp Today at 10:53 am

» Growing Fear
by Wickyz Today at 9:31 am

» ALUMEX PLC (ALUM.N0000)
by Bakkabwoi Yesterday at 8:24 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:54 pm

» First capital holdings CFVF.N0000
by invest thinker Yesterday at 6:25 pm

» The market is not out to “get” you but is just flowing along, and your position just happens to be carried along with it.
by dayandacool Yesterday at 4:49 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by reyaz Yesterday at 4:15 pm

» KGAL - THE SLEEPING GIANT
by THASSIM Yesterday at 2:21 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by Wickyz Tue Apr 20, 2021 12:54 pm

» LDEV LDEV LDEV
by Eranga87 Tue Apr 20, 2021 10:27 am

» No trader can flee from making a mistake. It’s just that you need to be careful about not repeating your mistakes.
by Mithooshan Tue Apr 20, 2021 7:42 am

» SWISSTEK (CEYLON) PLC (PARQ.N0000)
by Chithi Mon Apr 19, 2021 7:45 pm

» ROYAL CERAMICS PLC (RCL.N0000)
by Jana Mon Apr 19, 2021 6:14 pm

» US dollar trading lower, euro near new high
by target1 Mon Apr 19, 2021 1:38 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » What will be the price of TWOD after the XC date?

What will be the price of TWOD after the XC date?

Go down  Message [Page 1 of 1]

ccsentha


Vice President - Equity Analytics
Vice President - Equity Analytics
What will be the price of TWOD after the XC date?

current price is 15.5, so after the XC date the price should be ((15.5*2) + 8.75) / 3 = 13.35
is this correct?

so who ever buys TWOD before the XC date would end up with profit, isn't it? (Theoretically)

cost of buying 2 shares before the XC date = 31

sale after XC date(after the bonus is credited) = 13.25*3 = 39.75, so there would be a profit of 8.75......

the question is will the price be 13.25 after the XC date or will it drop further down?
(Open for experienced experts to comment......)

hunter

hunter
Moderator
Moderator
In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Fresher


Moderator
Moderator
@hunter wrote:In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Almost right, but you should consider the capitalisation price 8.75/- as well. S/H don't pay but it should be considered. Correct me if I am wrong.

hunter

hunter
Moderator
Moderator
npp wrote:
@hunter wrote:In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Almost right, but you should consider the capitalisation price 8.75/- as well. S/H don't pay but it should be considered. Correct me if I am wrong.

You're better equipped to make the conclusion Very Happy

Well, this is how I reason it out...

Scenario -1: What if S.H.s paid 8.75? Then we need to consider 8.75.
Right?

Scenario-2: What if S.H.s didn't pay a cent? Can it be the same as Scenario-1?
Cannot be; right?

Scenario-3: What if they paid 8.75 as dividend and issued 2:1 rights at 8.75? Is it the same as Scenario-2?

Whatever.., there will be different judgments among us and it will lead to heavy price fluctuations for sure around XC.



Last edited by hunter on Sun Nov 18, 2012 7:38 am; edited 1 time in total

Fresher


Moderator
Moderator
I get your point, and think it is right since it is paid out of reserves.

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
As far as assert are concerned they remain the same as this 8.75 is accounted for by moving existing assert only.

So technically unlike a right issue new money won;t come in. Number of shares will increase but asserts the same.

I did mention in another post when this was trading at Rs 19-20 (which had a long discussion ) that if market takes this negative TWOD can be valued at Rs 15 . seems we are there now.


So after capitalization if market remain further negative in lethargic december , this could head to Rs 10 or even below based on current value . On the other hand TWOD financials and (some one said) court case is pending. ( not sure of the date for court case is near and how long this is going to drag) . If they give some positive news this bonus can give you some positive return.

Summary : Practically we expect bonus to be a positive thing. But it can go negative depending on market situation. We have seen this before.








@hunter wrote:
npp wrote:
@hunter wrote:In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Almost right, but you should consider the capitalisation price 8.75/- as well. S/H don't pay but it should be considered. Correct me if I am wrong.

You're better equipped to make the conclusion Very Happy

Well, this is how I reason it out...

Scenario -1: What if S.H.s paid 8.75? Then we need to consider 8.75.
Right?

Scenario-2: What if S.H.s didn't pay a cent? Can it be the same as Scenario-1?
Cannot be; right?

Scenario-3: What if they paid 8.75 as dividend and issued 2:1 rights at 8.75? Is it the same as Scenario-2?

Whatever.., there will be different judgments among us and it will lead to heavy price fluctuations for sure around XC.

hariesha


Vice President - Equity Analytics
Vice President - Equity Analytics
I would like adding something to slstock idea.

We shouldn't rely on theoretical prices in a volatile counter like TWOD. With the split number of shares is increasing. Public holding of TWOD is more than 70%. After XC date quantity to be sold will increase by 50%.

So all will depend with the mindset of the prospective buyers. Will the mindset adjust to accept 50% more?

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
yes there will be selling pressure to bring to the current prices down...unless the buying interest overtakes for some reason which market only can explain Very Happy

got a small qty....in my PF

TAH

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum