Hi andytanks,

                    good morning. I do hope for the same. Let's watch and see.. :D

Cheers,

oinkoink

andytanks      ( Date: 28-Jan-2009 05:35) Posted: DOW up for 3 days... U turn for sure... If the news for Rights is firm, things may change... $3 mark is easily hit, US see a gd indicator of property sales for december.. It may be well indicator for a lelong in property.... we shall see...

hi Alligator,

                 thks for the detail explanation. Yes, I'm aware that CapLand has not offered any rights issue yet. We will wait and see if the speculation is true.

Thanks and happy new year to you :)

Cheers,

oinkoink

Thanks again for your kind advise on this issue.

So can I say that if I have 4 lots of capitalland stocks, I am entitle to 1 rights. I can either subscribe to it by paying 2.20 to convert the 1 rights to a mother share.

Those who didnt wish to subscribe can sell of their rights in open market at the trading price on the market. Can gain any if the price goes up above 2.2 and lose some $ when the price goes below 2.2? And also shareholders are given time frame to trade on the rights, after the given period, what will happen to those rights issue?

Alligator      ( Date: 25-Jan-2009 00:30) Posted: oinkoink1999,  i am sorry your understanding is incorrect. firstly Capitaland had NOT offered any Rights issue and thus answer to your questions are not meaningful. Thus i take another approach to illustrate the point and hope it is clearer to you.   In order for you to have a quick understanding of Rights issue , I use the recent DBS bank Rights issue as example : The 1 for 2 Rights Issue price of SGD 5.42 per share represents approximately 45% discount to the last traded share price of SGD 9.85 on 19 December 2008 and approximately 35% discount to the theoretical ex-rights share price of SGD 8.37 per share ( these BOLD words are extracted from DBS announcement in sgx website).  The next thing you need to know is during the Rights Trading period, the nil-paid Rights has a tendancy to trade around a price that is approximately equal to (Mother share price - Rights issue price ). Let's see DBS as example below, i copy from some DBS post to illustrate a point, you can see that when mother share is traded at 8.35 to 8.62, the nil-paid Rights is traded at 2.82 to 3.18, which is approximately difference by the Right issue price of 5.42. Lastly, you also need to know an entitled shareholder need to EXERCISE his rights by paying the RIGHTS issue price so as the convert his nil-paid Rights to a mother share. For DBS entitled shareholder, they need to pay S$5.42 to convert Rights to DBS mother share. I hope these explanation allow you to understand Rights better. Good luck Live Quotes from SGX Rmk Last Change % Vol B Vol Buy Sell S Vol High Low Sector    DBS R   2.960 +0.140 +5.0 9,756 10 2.960 2.980 1 3.180 2.920 FIN    DBS R500   2.880 +0.070 +2.5 441 3 2.880 2.920 1 3.180 2.820 FIN  DBS   8.420 +0.140 +1.7 20,352 135 8.420 8.430 3 8.620 8.350 FIN   hello freeme, the nil-paid Rights trading price is driven by market,  but it is always tracking to ( Mother share price minus Rights Issue price).

I duno if i understand fully:

eg. on capitaland

I got 4lots, and im entitle to 1 new rights share which is priced at 2.2

If I dun subscribe to the rights, I can sell in within the given time frame. nil-paid rights can sell for how much?

Alligator      ( Date: 23-Jan-2009 22:03) Posted: hello freeme, well, you get the nil-paid Rights free of charge, if that is valuable ( like in the recently DBS case, it traded around S$2.x to 3.x. , Even you do not want to subscribe, you can sell the nil-paid rights for money. If you do nothing, it expired and become worthless... freeme Senior Posted: 23-Jan-2009 19:48       Contact freeme          *  Quote this Post! x 0 x 0 * Alert Admin Thanks for your reply,  As you said, i dun subscribe, why still have to sell on open market?

Thanks for your reply, 

As you said, i dun subscribe, why still have to sell on open market? 

elfinchilde      ( Date: 23-Jan-2009 19:21) Posted: hi freeme. :) CFD: same as margin accounts. when the announcement is made (damn it, was out whole day so i didn't know the formal announcement not out yet >~<, if i'd known i wouldn't have posted! ),  your brokerage house should call you and ask you if you wish to suscribe for the rights or not. If you wish to suscribe: make sure you have sufficient cash in the account so that you don't kena margin call. if you don't wish to suscribe: same procedure. Wait for the letter to be sent to you; sell on open market at open. Pls cfm with your broker the no: of rights you have before you do anything though. If your broker doesn't call you, send an email or call your broker to clarify (since most are web-based accounts i think.), and give instructions there--to suscribe or not. My own preference is email: this way there's written record kept in case of any dispute. CYA principle applies. In the meantime, make sure there's sufficient balance in your margin to support 2.2 in a worst case scenario. The idiotic foreigners are really selling down this baby. From my broker, the support is pegged at the 52 week low of 2.28. hope this helps, cheers! PS: caveat applies as usual pls.