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MFT has been talking for sometimes that only buy stocks that has done its rights issue. UOB and OCBC has yet to do that.
Look at DBS, rights issue of 5.40 when it is trading 10......this cause panic.
FYI, Singapore companies account for 80% of all rights issue in the whole Asia !!! 17B I heard from news....
Also Yahoo News : Sucker's Rally or the Real Deal.
Did someone see the light at the other end of the tunnel or headlight of an oncoming truck.......??
goondoo ( Date: 13-Apr-2009 21:37) Posted:
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I thought Rights issue is EPS dilutive, esp when the capital raised does not increase EPS proportionately, and if EPS drops, dividend per share drops as well.
Why does the market price UOB to trade at P/E of 10 and dividend of 6% while OCBC trade at P/E of 12 and dividend of 5% and DBS trade at P/E of 15 and dividend of 6%?
It does not make sense.
ask Uob go for right issue will increase its market value.... all these are 3 banks and people go for cheap cheap counters ma...
goondoo ( Date: 13-Apr-2009 21:31) Posted:
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Just Comparing the price between 31 Dec 2008 and 13 Apr 2009 for our local bank stocks.
31 Dec 2009
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DBS $8.42, mkt cap: $19.2 billion (include 1 for 2 rights issue)
OCBC $4.99, mkt cap: $15.6 billion
UOB $12.92, mkt cap: $19.4 billion
13 Apr 2009
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DBS $9.25, mkt cap: $21.1 billion
OCBC $5.69, mkt cap: $17.8 billion
UOB $10.78, mkt cap: $$16.2 billion
What happened?