Friday 25 June 2010

Understanding Bonus Issues in our Local Market

Using the search function of my blog for 'bonus issue', I found these postings on this topic.

Oct 04, 2009
What this means in plain terms is that the typical investor who buys the stocks of a company undergoing bonus issue either just before (by basing his purchase on rumours) or just after the announcement of a bonus almost certainly ends ...
Oct 04, 2009
... is the fundamentalist one; only buy those stocks which provide you with a reasonable return and which have the prospect of providing a constant long-term growth in earnings and dividend irrespective of whether they give bonus or not.
Jan 31, 2010
As its low share liquidity was among the issues raised by investors leading to the low PER, KPJ subsequently announced proposals for a 1-into-2 share split, 1-for-4 bonus issue and 1-for-4 free warrants issue as a step to improve the ...
Apr 12, 2010
Further, the company has not encouraged unwanted speculation by going in for a stock split or bonus issues, as these measures do nothing to improve the intrinsic values. They merely are tools in the hands of mostly dishonest managements ...





Oct 03, 2009
Elsewhere, a bonus issue or a share split is treated as a non-event and nobody ever gets excited about it. At the ex-bonus date, the price automatically adjusts downward such that the value of the whole company remains the same. ...
Oct 03, 2009
It is futile to chase up the price of shares based on rumours that a particular company is about to make a bonus issue. The really wise investors or the truly cunning insiders would have got in when the price was a lot lower. ...
Oct 04, 2009
It is more than possible that a large number of bonus issues are made for the purpose of giving a temporary boost to the price of the stock. As to why any company should desire to achieve a temporary boost in the price of stocks, ...
Aug 06, 2009
SPG does not believe that bonuses increase the value of shares, and advise investors not to pay much attention to the past number of bonus issues. We look at rights in another light, however, as we are not in favour of rights issues ...





Oct 03, 2009
Whenever this happens, Malaysian speculators usually become very excited because they feel sure that a bonus issue is forthcoming since the company now has reserves which can be converted to bonus shares for distribution. ...
Sep 27, 2009
Whenever a company announces that it is making a rights issue, the market in Malaysia/Singapore, on the whole, does not react adversely especially when the right issues are accompanied by a bonus issue. The price of the company's shares ...
May 11, 2010
... narrows due to the increase in natural rubber price. "There is also the possibility of abonus issue, following in the steps taken by its peers," it said in a note on Tuesday. Posted by bullbear at 1:16 AM. Labels: Glove, hartalega ...

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