FGEN (First Gen Corporation)

[yeahbah]

yoko nyan, masyadong basura.

[tarantrader]

sirs, whats your take on ISM?

Wrong thread ka pards.

[aviator]

pano ba ang magandang diskarte dito sa FGEN. Can someone share a scenarios what will happen kung pagparticipate ka or kung hindi ka mag participate sa stock rights. or participate ka sa stock rights sell everything when you get the shares? anyone who can share a light on this issue...

[sund3r]

Eto ang pananaw ni Tarantrader.

Basa..

Stock rights have always been a damned-if-you-do, damned-if-you-don't thing for me.

Consider this: you have shares of NI. Your cost is say 10 pesos. NI comes out with a stock rights offering that for every 5 shares you have, you can avail of 1 at 1 peso. You have 2 choices. If you buy the rights, your cost will adjust accordingly as will the share price. However, you can't sell everything until the rights have been given to you. Who knows when that will be and what has happened to the share price by then?

If you don't buy the rights, your cost remains the same and you don't shell out extra money. The price of the shares will still adjust accordingly giving you immediate losses. So what do you do?

If you want to preserve the integrity of your acquisition cost, sell everything before ex-rights date and just buy back later on after the shares have already adjusted.

So that brings me now to the question I've been wondering ever since this stock rights thing came out. What's so great about a stock rights offering at 1 peso when you know all stock rights scenarios are like what I just mentioned?

Kelan ba ex-date ng FGEN?

[aviator]

baka sa January pa ang stock rights nyan according to citisec

[tarantrader]

Opinion ko lang yun. Mali pa pala ang ratio. For every share of NI, you get to buy 5 more at 1 peso. But my look on rights are still the same.

[aviator]

for Tarantrader! pag nag exdate na at naka bayad ka na sa stock rights na sinubscribe mo pwede mo ng i unload yung old shares mo? para masave mo yung old position mo sa dilution? yung can still get the rights? kelan ba nila ibibigay yun? parang stock dividends na may payment date 1 month after the ex date?

[tarantrader]

for Tarantrader! pag nag exdate na at naka bayad ka na sa stock rights na sinubscribe mo pwede mo ng i unload yung old shares mo? para masave mo yung old position mo sa dilution? yung can still get the rights? kelan ba nila ibibigay yun? parang stock dividends na may payment date 1 month after the ex date?

ex-date only means pwede kang sumali sa subscription ng rights kung hawak mo pa sya on ex-date. Ang mas matinding effect on ex-date is adjust agad ang price. On ex-date you can sell your mother shares. But you still have to wait for your rights to be given to you so you can also sell it. Normally, announce naman nila ang date payable.

Kaya nga ayaw ko ng stock divs & stock rights, lalo na stock rights. Ang divs wala ka na magagawa kundi sakyan ang adjustment and then kunin ang divs kasama na ang odd lot. Yung rights, either magbayad ka para makisabay ka sa adjustment or di ka magbayad para instant loss. Either way talo ka.

[aviator]

oo nga! dapat pag isipan kung pano gagawin diskarte dito. kung ayaw mo sumali sa rights dapat ibenta mo na mother shares mo before the exdate kasi loss na agad yun.

[newzealand]

In my opinion it depends on how much your acquisition cost or what kind of investor are you. long term ka ba sa stock na hawak mo or you just speculating the uptrend of the stock rights or dividend .I may avail say stock rights if you got it 10% above discount from the ex-date of the dividend even if it adjusted ahead ka parin dahil may dividend or discounted price sa stock rights. For how long you will hold it depends on your appetite to take profit. lets say SECB declare stock rights 28 pesos per share .my cost then was only 40 .look up now how much is SECB it close today at 57. More than 100% na yung kita sa stock rights thats how i look it medyo long term ako dito and willing to hold up to next year boom.