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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Bloody Warrants and Rights Cheating the Investors

Bloody Warrants and Rights Cheating the Investors

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Gainer

Gainer
Associate Director - Equity Analytics
Associate Director - Equity Analytics
When Market Moving up Issue the Rights and Warrants for Cheating the investors.
Bloody companys issue bloody Warrants and Rights for Cheating the investors.
Why Listing these useless things in CSE for trading.
CSE please Don't list these useless thing in cse for trading.
Please Seve your investors these kind of things lose lots of money your investors.
Useless companys and useless things issue and cheating the investors.

NBW


Stock Analytic
Stock Analytic
There is no wrong of introducing more instruments. It is good for CSE. But problem is the way of using those instruments. Most of Rights and warrents issued at overvalued price.

Gainer

Gainer
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@NBW wrote:There is no wrong of introducing more instruments. It is good for CSE. But problem is the way of using those instruments. Most of Rights and warrents issued at overvalued price.

Yes You are correct, Yesterday Announce JANASHAKTHI INSURANCE COMPANY - RIGHTS ISSUE 1 FOR 2 at 18.50 this also over value.

When Market moving up some bloody companys Announce Rights issue and Take the money for personal use.

Ryan Hudson


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Gainer Whats your basis to say JIns rights overvalue

Gainer

Gainer
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@Ryan Hudson wrote:@Gainer Whats your basis to say JIns rights overvalue

JINS Net Asset Value Per Share 12.15 and EPS .55 Cents then Rights issue should be below net asset value.

Should be go for Solvency Test .

Gainer

Gainer
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Nation Lanka Finance  -  Rights Issue 02 for 01 at 1.00

Waskaduwa Beach Resort  -  Rights 01 for 02 at 10.00
 
Dankotuwa Porcelain -  Rights Issue 05 for 04  at 8.00

How CSE Allow to give the Approval.

Should be go for Solvency Test.

akashameer


Senior Equity Analytic
Senior Equity Analytic
@Gainer wrote:Nation Lanka Finance  -  Rights Issue 02 for 01 at 1.00

Waskaduwa Beach Resort  -  Rights 01 for 02 at 10.00
 
Dankotuwa Porcelain -  Rights Issue 05 for 04  at 8.00

How CSE Allow to give the Approval.

Should be go for Solvency Test.
i understand ur sentiments, i lost huge money with nations lanka
and gainer explain me, when rights issue is announced for less price than current market price of the share
whats the effect on the market price of share
obviously the price of market share goes down
if this is the answer
wont the price recover??

Jana

Jana
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
I lost from DPL some money ... all published the rumour is DP take over this .. so I also bought some @ 14.00 level half of them I sold @ 14.50 (luckily) then they announce Rights then I sold @12/= another half

but MADU I expect they play well but not but I am thinking to pay for mine because no one ready to pay this so not much qty in the market again .. any how my Qty is vry small

and more over why SEC allowed these type of issues without any clarification

Lot of IPOs , Rights issues , warrants ...

end of the day who are the company directors spend those money .. never share holders get benefit...

even if they used to develop that company then automatically company will progress and share holder get benefit from shares value go up ...

but all gillmall companies and SEC never do any job..

just they want to catch small fishes to show they are doing some thing and save the big fishes

Jana

Jana
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
I made huge loss from CFS.W , GW3 , CLPL.W13

but then I changed my way just trade with these ..so I made from GREG..W6 , CLPL.w14

any how finally I hold some and they write off .. but still I made gain

but if the company doesn't have the value then SEC never allowed to issue those think

First SEC need to put them behind the iron bar..

Jana

Jana
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
I am thinking to open aappa kade then show some fake accounts and introduce as IPO in the market ..

Then every year issue some rights ..warrants with bogus story ...

only the way to become a business magnet

Gainer

Gainer
Associate Director - Equity Analytics
Associate Director - Equity Analytics
CITW Rights Issue 1 for 2 at 10.00 But it's trading in the market 6.00 levels this Another big Cheating the investors.
CSE and SEC Don't Allow to give the Approval.
Should be go for Solvency Test.

sureshot

sureshot
Vice President - Equity Analytics
Vice President - Equity Analytics
@Gainer wrote:When Market Moving up Issue the Rights and Warrants for Cheating the investors.
Bloody companys issue bloody Warrants and Rights for Cheating the investors.
Why Listing these useless things in CSE for trading.
CSE please Don't list these useless thing in cse for trading.
Please Seve your investors these kind of things lose lots of money your investors.
Useless companys and useless things issue and cheating the investors.

When Rights /warrant shoots up you say good  buy buy ....
When price falls you say its Bloody cheating ......

Whats is this  baila sahodariya ?  Very Happy

SLBOY


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@sureshot wrote:
@Gainer wrote:When Market Moving up Issue the Rights and Warrants for Cheating the investors.
Bloody companys issue bloody Warrants and Rights for Cheating the investors.
Why Listing these useless things in CSE for trading.
CSE please Don't list these useless thing in cse for trading.
Please Seve your investors these kind of things lose lots of money your investors.
Useless companys and useless things issue and cheating the investors.

When Rights /warrant shoots up you say good  buy buy ....
When price falls you say its Bloody cheating ......

Whats is this  baila sahodariya ?  Very Happy
Very good reply from sureshot.
And we can say these things as "Wal baila....."

vic19

vic19
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
I think when a company go for "right" depending on the proportion of the rights to be issued ( in Janashakthi Case 1 rights for 2 held  at 18/50) the supply of the shares increases ( liquidity )this will bring down the price of that shares on most occasions at least for a while.

it also matters as for what reason they are going for rights.

eg: may be for expansion of business , new venture,.......

remember the proceeds of the rights is an "   interest FREE MONEY with NO repayment what so ever " for the company apart from the initial cost of the issue.

the company can off set the rights proceeds to settle their high interest borrowing if any ( eg: debentures  )by that they could reduce their interest cost. that will increase their profitability ...

end of the day it all falls on to the integrity of the directors of the company . good companies would like to see their company add value to their share holders and for their confidents they place on them by giving them good returns by way of dividends and bonus and also giving then good capital gains( by maintain the share price by performance and control of number of shares  on issue)

but then again  regulatory body ( CSE) also should play its part by doing its due strick checks on these companies to protect the innocent share holders( hard earned money ) who are not part of the management.

in my view good reputed companies do not go for frequent rights to jeopardise their share value.they only go as a last resort. even if they go they at the correct pricing and at only required proportion to maintain the share price.

some directors are paid bonus if they maintain the share price of a company by good management policies in overseas .

i think for eg: Hemas recent rights issue( a good example of a good right issue ).now the price has gone up from 70 to 90 plus

good chairman and good directors matters for us to get value for our investment.this

lets hope the CSE will check janashathi  right issue and do its part before it approves the rights to go ahead to protect every one.

thanks

Invest_Wisely


Manager - Equity Analytics
Manager - Equity Analytics
My advice is let companies issue warrants or rights issues, at the end of the day it is ur choice whether to invest in these or not...If u feel it is not good to invest in them then stay away...

vic19

vic19
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Hi "invest -wisely", you are correct to a certain extend but you must also take into account that these type of issues will mob up available cash in the market and will have knock on effect on the other share price due to lesser investable money among investors in a small way.

Don't you think so?

Any way I have sold my janashakthi at 21/-

Thanks

Roshan Fernando

Roshan Fernando
Senior Equity Analytic
Senior Equity Analytic
BLUE right also same thing happen, before right the BLUE.X is around Rs.1/- and Rs.1.1, after announce right it come down Rs. -/70. There was no demand for right at that period. But finally the company get Rs. 165M from right

The purpose of right issue is “establish a research development unit, establish gold design centre, investment in new machinery “ .

As per the last quarter financial statement, administration exp is very high and cash in hand is Rs.72 M due right issue. We do not know the present progress of the company planned (right issue)

I think CSE should monitor the company use right issued cash for intended purpose or not, otherwise the companies play with small investor’s money.  

Gainer

Gainer
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Rights Issue will killing the market becarefull.
Many Companys Ready to Announce Rights Issue.
JINS already Announce.....................................
Buy Only Cash Rich Companys in this market.

PROPRITER

PROPRITER
Equity Analytic
Equity Analytic
@Gainer wrote:
@Ryan Hudson wrote:@Gainer Whats your basis to say JIns rights overvalue

JINS Net Asset Value Per Share 12.15 and EPS .55 Cents then Rights issue should be below net asset value.

Should be go for Solvency Test .


@G
why do you think that the Right should be below the net asset value of a share?
if its possible please explain.

vic19

vic19
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Hi " proprietor ",

As you know the rights are only for the people who are already holding the company shares.

The rights should be always priced to give some sort of incentive to the existing share holders to benefit mainly by way of pricing. ( market price to rights price )

In my view I support " gainers " comment that rights pricing should be around NAV . This gives some sort of confidants for the existing share holders to part their money and rely on it share value.

Will you buy any thing without knowing its instinct value ?

Share price vary time to time according to market sentiment however NAV do not it is some what stable.

Also the " rights " price depend on the purpose of its been done.

I hope I am right.

Experts please correct me if I am wrong.

Thanks

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