Tuesday, November 27, 2007

Yongnam rights issue

I got my OIS for yongnam rights issue recently, so spent some time reading through the thick 100 page report about the rights issue.

A few key dates for my own reference:

Last day of trading of nil-paid rights : 30 Nov (this fri)
Last date and time for acceptance and payment of warrants: 6th Dec (next thurs) 9:30 pm for ATM
Expected date of issuance for warrants: 17th December
Expected date of trading for warrants: 21st December

So far, the rights issue is well received. It hovers around 0.035/0.040 range while yongnam mother share hovers around 0.270 to 0.280 most of the time. Since I have 10 lots of yongnam before XR, I'm provisionally allocated 3 lots of warrants which I have to subscribe to. Am I going to subscribe for excess rights? Probably not. I'll just pay my due of $90 (0.03 x 3000) and be done with it.

I believe that construction still has a little more to go. The price shouldn't drop too far from the present, having dropped from their peak in Aug (or even the Oct peak) to now. However, I do not want to hold construction companies for the long term because they are so cyclical in nature, so who is to say that they will be around in another 5 years? I'll try to reduce or remove my entire stake of construction companies to free my capital, hopefully by this year end, pending a year end rally :)

For my own records, here's the address of the warrant agent in case I want to exercise my warrants to change it to shares:

Tricor Barbinder Share Registration Services
8 Cross Street
#11-00 PWC Building
Singapore 048424

I haven't read the part about exercising warrants. I'll read it though, even though I have no intention to keep it to realise the value. It's more for knowledge about how this whole exercise works. Having been through one rights exercise for Pac andes, I dare say I'm in a much clearer picture of what is happening and I'm not so blur. Haha, just take a look at those in the cna forum, I guess I'm like them for my Pac andes rights exercise.

Just sold off my GK Goh at 1.100 today. I figured out that even if the market rebounds, this stock will not reached my buy price at 1.22 anytime soon. Might as well put it in my MMF and get a 2% returns or put it in other stocks. I'll realise a loss of 10.8%, equivalent of $660 absolute loss. Enough is enough :)

Waiting patiently for HSBC to hit HKD 120 :)