GMG Global   

Rubber Band(it)

Hi, i have some questions regarding this right issues.

I hold 20 lots of GMG @ 0.26/unit.

The stock currently went down all the way to 0.119/unit.

I subscribed all 20lots of rights @ 0.091/unit.

Just for information. This right issues has a negative impact on this stock isn't?

I'm actually losing money from this right issue?

Pre-right issue was 0.24/unit.

 

hmm...if I were to sell my rights now at 0.02 x 20000, I will get $400. If I were to purchase it at 0.091 and assuming that the price stays at 0.120, I will get $580. I think I'll sell off my rights since the chances of it getting lower than 0.120 is higher after the ex rights date

 

 

ok. got it

Thanks jcho

jcho1962      ( Date: 07-Dec-2011 14:54) Posted: If you were to buy Rights Shares from open market @ $0.02 with the intention of converting them into ordinary shares, you still need to pay $0.091 per unit for the conversion by 14 Dec 2011. Therefore, the eventul unit price for your GMG shares is $0.111 ($0.02 + $0.091).

 

If you were to buy Rights Shares from open market @ $0.02 with the intention of converting them into ordinary shares, you still need to pay $0.091 per unit for the conversion by 14 Dec 2011.

Therefore, the eventul unit price for your GMG shares is $0.111 ($0.02 + $0.091).

 

Yup..I understand that. But to buy it from the open market would be way cheaper than to apply for excess rights from what you have mentioned in your previous post. i.e. 1 unit from open market is only $0.02....while excess rights is at $0.091...the price difference is like 4 times diff. Since you said buying rights from open market can be converted to ordinary shares...thus, my assumption is that if I buy 10 lots from open market at 0.02 ....I'll have 10 lots ordinary shares after the ex rights date. As such, if I could buy from the open market....why do I have to purchase if from the company to wait for their allocation, in addition, the amount alloted is random. Futhermore, the price diff even make buying from open market cheaper.

Apologize if what you have said isnt what I have understood. Pls clarify.

Thanks.

jcho1962      ( Date: 07-Dec-2011 14:18) Posted: FYI:  When you apply for excess Rights Shares, you are required to pay first @ $0.091 per unit. That means, whatever amount of excess Rights Shares that have been allotted to you by the Company will be converted to Ordinary Shares (no further payment is required and you will be refunded accordingly for the unsuccessful lots that you have applied for). james87      ( Date: 07-Dec-2011 14:09) Posted: Thanks jcho. But 0.02 is really kind of unbelievable. Then why would ppl wanna apply for excess rights if they could buy it from open market at 0.02 instead of 0.091? It doesn't make sense.... Sorry for so many questions asked. Pls help me clarify my doubts.

 

oh no e 0.02 is to buy the rights to buy rights.. so its 0.02 plus 0.091 so its 0.101 in total. that was how it was explained to me

james87      ( Date: 07-Dec-2011 14:09) Posted: Thanks jcho. But 0.02 is really kind of unbelievable. Then why would ppl wanna apply for excess rights if they could buy it from open market at 0.02 instead of 0.091? It doesn't make sense.... Sorry for so many questions asked. Pls help me clarify my doubts.   jcho1962      ( Date: 07-Dec-2011 13:53) Posted: PLEASE READ REPLIES IN BLUE BOLD PRINT  james87        ( Date: 07-Dec-2011 12:42) Posted: Hi jcho,  If you buy rights shares from open market @ 0.02, won't it be very cheap as compared to the mother shares.  TRUE BUT DON'T FORGET THE RISK AS SHARE PRICE FALLS FURTHER  These rights shares bought at 0.02 ..is it convertable to ordinary shares  YES  or must be sold before 8 dec 5 pm.  IT'S UP TO YOU  If thats the case, is it that those rights shares that could be converted to ordinary shares must be purchased from the company and  not  from open market?  YOU CAN ACCUMULATE THEM FROM THE OPEN MARKET TOO

 

FYI: 

When you apply for excess Rights Shares, you are required to pay first @ $0.091 per unit. That means, whatever amount of excess Rights Shares that have been allotted to you by the Company will be converted to Ordinary Shares (no further payment is required and you will be refunded accordingly for the unsuccessful lots that you have applied for).

james87      ( Date: 07-Dec-2011 14:09) Posted: Thanks jcho. But 0.02 is really kind of unbelievable. Then why would ppl wanna apply for excess rights if they could buy it from open market at 0.02 instead of 0.091? It doesn't make sense.... Sorry for so many questions asked. Pls help me clarify my doubts.   jcho1962      ( Date: 07-Dec-2011 13:53) Posted: PLEASE READ REPLIES IN BLUE BOLD PRINT  james87        ( Date: 07-Dec-2011 12:42) Posted: Hi jcho,  If you buy rights shares from open market @ 0.02, won't it be very cheap as compared to the mother shares.  TRUE BUT DON'T FORGET THE RISK AS SHARE PRICE FALLS FURTHER  These rights shares bought at 0.02 ..is it convertable to ordinary shares  YES  or must be sold before 8 dec 5 pm.  IT'S UP TO YOU  If thats the case, is it that those rights shares that could be converted to ordinary shares must be purchased from the company and  not  from open market?  YOU CAN ACCUMULATE THEM FROM THE OPEN MARKET TOO

 

Thanks jcho.

But 0.02 is really kind of unbelievable. Then why would ppl wanna apply for excess rights if they could buy it from open market at 0.02 instead of 0.091? It doesn't make sense....

Sorry for so many questions asked.

Pls help me clarify my doubts.

 

jcho1962      ( Date: 07-Dec-2011 13:53) Posted: PLEASE READ REPLIES IN BLUE BOLD PRINT  james87        ( Date: 07-Dec-2011 12:42) Posted: Hi jcho,  If you buy rights shares from open market @ 0.02, won't it be very cheap as compared to the mother shares.  TRUE BUT DON'T FORGET THE RISK AS SHARE PRICE FALLS FURTHER  These rights shares bought at 0.02 ..is it convertable to ordinary shares  YES  or must be sold before 8 dec 5 pm.  IT'S UP TO YOU  If thats the case, is it that those rights shares that could be converted to ordinary shares must be purchased from the company and  not  from open market?  YOU CAN ACCUMULATE THEM FROM THE OPEN MARKET TOO  james87      ( Date: 07-Dec-2011 13:19) Posted: Hi jcho, If you buy rights shares from open market @ 0.02, won't it be very cheap as compared to the mother shares. These rights shares bought at 0.02 ..is it convertable to ordinary shares or must be sold before 8 dec 5 pm. If thats the case, is it that those rights shares that could be converted to ordinary shares must be purchased from the company and not from open market?

 

james87      ( Date: 07-Dec-2011 13:19) Posted: Hi jcho, If you buy rights shares from open market @ 0.02, won't it be very cheap as compared to the mother shares. These rights shares bought at 0.02 ..is it convertable to ordinary shares or must be sold before 8 dec 5 pm. If thats the case, is it that those rights shares that could be converted to ordinary shares must be purchased from the company and not from open market? jcho1962      ( Date: 07-Dec-2011 12:57) Posted: Wrong. Here we have 2 different transactions: 1. Buy Rights Shares from open market @ $0.02 2. Accepting them by 14 Dec 2011 @ $0.091 (ie converting them into ordinary shares)

 

This is a China Company - I think some analyst should do  a visit  to their planation. If you guys just invest which knowing whats really going on there its kind of risky.

There must be a reason why the stock valuation went down so much..... normal retailer investors wont have the news. This stock to me is like robbing you in daylight with licence.

Personal view its not worth it to convert to mother share..... 

 

 

Hi jcho,

If you buy rights shares from open market @ 0.02, won't it be very cheap as compared to the mother shares. These rights shares bought at 0.02 ..is it convertable to ordinary shares or must be sold before 8 dec 5 pm. If thats the case, is it that those rights shares that could be converted to ordinary shares must be purchased from the company and not from open market?

jcho1962      ( Date: 07-Dec-2011 12:57) Posted: Wrong. Here we have 2 different transactions: 1. Buy Rights Shares from open market @ $0.02 2. Accepting them by 14 Dec 2011 @ $0.091 (ie converting them into ordinary shares)  james87      ( Date: 07-Dec-2011 12:42) Posted: thanks belgeran. Meaning ppl can actually buy the right now at 0.111 and after ex rights it will be converted to ordinary shares. Hmm...thinking of the best way now to handle my rights..

 

Wrong.

Here we have 2 different transactions:

1. Buy Rights Shares from open market @ $0.02

2. Accepting them by 14 Dec 2011 @ $0.091 (ie converting them into ordinary shares) 

james87      ( Date: 07-Dec-2011 12:42) Posted: thanks belgeran. Meaning ppl can actually buy the right now at 0.111 and after ex rights it will be converted to ordinary shares. Hmm...thinking of the best way now to handle my rights... belgeran      ( Date: 07-Dec-2011 12:05) Posted: yes u can buy from open market as well pls do note that there is an arbitary difference currently... the price of rights 0.02 + 0.091 = 0.111.. which is lower than the actual counter. but also note that it has been selling down since the rights issues

 

You can also apply for excess Rights Shares @ $0.091 together with acceptance of your Rights Shares available. However, you will have to accept whatever amount of excess Rights Shares to be allotted to you at the Company's discretion (and you will get your refund, if there is any).

 

thanks belgeran.

Meaning ppl can actually buy the right now at 0.111 and after ex rights it will be converted to ordinary shares. Hmm...thinking of the best way now to handle my rights...

belgeran      ( Date: 07-Dec-2011 12:05) Posted: yes u can buy from open market as well pls do note that there is an arbitary difference currently... the price of rights 0.02 + 0.091 = 0.111.. which is lower than the actual counter. but also note that it has been selling down since the rights issues

 

yes u can buy from open market as well

pls do note that there is an arbitary difference currently... the price of rights 0.02 + 0.091 = 0.111.. which is lower than the actual counter.

but also note that it has been selling down since the rights issues

 

Thanks jcho. Btw, since I could sell the rights in open market. Can I also buy them from open market at 0.02?

 

PLEASE READ REPLIES IN BLUE BOLD PRINT BELOW

jamess87       ( Date: 06-Dec-2011 11:14) Posted:

Thanks all who helped to clarify my doubts...I have just checked my CDP account..the rights is in there. Lucky I didnt miss it ..otherwise after 8 dec my rights would have expired and I can get nth. Btw, lileba2003, whats the diff between selling the mother share first then sell the rights as compared to selling the rights first then sell the mother share. My intention is to sell the rights to get that few hundred bucks then keep the mother shares to see how...dun wish to dump in more money to average my holding since the market is so volatile now.

YOU MAY KEEP YOUR MOTHER SHARE AND SELL YOUR RIGHTS SHARES ANYTIME BEFORE TRADING CLOSES @ 5P.M. ON 8 DEC 2011

I do have few more questions in mind. 

1. The usual transaction fees in open market trading still applies if I sell my rights in the open market? (I would think it is so) YES

2. Do the recent price drop in GMG mother shares has anything to do with the rights issue or purely the cause of rubber price?

SHARE DILUTION RESULTING FROM THE RIGHTS ISSUE AS WELL AS THE FALL IN RUBBER PRICE 

I'm still holding on to 20 lots at 0.315. Hoping that it will bounce back when the market is green next time. 

3. Just to clarify once more...the last day for trading of the rights is 8 dec 5 pm? YES

Thanks for the help.   

 

Thanks all who helped to clarify my doubts...I have just checked my CDP account..the rights is in there. Lucky I didnt miss it ..otherwise after 8 dec my rights would have expired and I can get nth. Btw, lileba2003, whats the diff between selling the mother share first then sell the rights as compared to selling the rights first then sell the mother share. My intention is to sell the rights to get that few hundred bucks then keep the mother shares to see how...dun wish to dump in more money to average my holding since the market is so volatile now.

I do have few more questions in mind.

1. The usual transaction fees in open market trading still applies if I sell my rights in the open market? (I would think it is so)

2. Do the recent price drop in GMG mother shares has anything to do with the rights issue or purely the cause of rubber price? I'm still holding on to 20 lots at 0.315. Hoping that it will bounce back when the market is green next time.

3. Just to clarify once more...the last day for trading of the rights is 8 dec 5 pm?

Thanks for the help.

lileba2003      ( Date: 06-Dec-2011 10:10) Posted: to James 87: if you want, you can sell the mother share of 10 lots at the market price e.g today is only 0.120  (is getting lower and lower  ), then sell the GMG right (GMG R)  at the price of 0.019 today (sigh ... save some bucks) if you receive the letter about it from GMG . But better you confirm first with your advisor before you take the 2nd step. It burns me as past few months couldn't check regularly, gosh !! jcho1962      ( Date: 05-Dec-2011 23:32) Posted: For your 10 lots of Rights Shares, you may EITHER  1) Convert them to ordinary shares @ $0.091 x 10000 by 14 Dec 2011 OR 2) Sell them in the open market @ prevailing price (last date for trading - 8 Dec 2011)

 

to James 87:

if you want, you can sell the mother share of 10 lots at the market price e.g today is only 0.120  (is getting lower and lower  ),

then sell the GMG right (GMG R)  at the price of 0.019 today (sigh ... save some bucks) if you receive the letter

about it from GMG . But better you confirm first with your advisor before you take the 2nd step.

It burns me as past few months couldn't check regularly, gosh !!

jcho1962      ( Date: 05-Dec-2011 23:32) Posted: For your 10 lots of Rights Shares, you may EITHER  1) Convert them to ordinary shares @ $0.091 x 10000 by 14 Dec 2011 OR 2) Sell them in the open market @ prevailing price (last date for trading - 8 Dec 2011)  james87      ( Date: 05-Dec-2011 22:05) Posted: Sorry...I dun quite understand it. Meaning if currently I'm holding 10 lots, I do know that I'm allocated 10 lots of rights...what does that mean then? Does it mean that the rights is already mine and I have the option to either sell it in the open market now  or I could also purchase it at 0.091 for it to be converted to ordinary shares after 14 dec? So...If I dun buy the allocated 10 lots....I could still sell the rights now in open market at 0.021 (current price) to earn a sum of $210?? kind of confusing....pls enlighten me. Thanks

 

Gosh ...

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