MAYBE I should buy 10 lots x 2.24 = RM 23 k ahead for trading buy. RISK is high hor. Heart Big Heart Small, So how? Assume I sell next week at 2.40 = 2.40 - 2.24 =0.16 * 10 lots = RM 1600 for 1 week. But hor do I have RM 23 k ?
Trading opportunities ahead of rights pricing. We think there may be trading opportunities over the next week or so as we draw closer to the price fixing date (based on the 5-day volume weighted moving average price prior to the price fixing date of March 27). Essentially, the dilutive impact from the rights would be less strenuous should TMI’s share price ‘rally’ ahead of the price fixing date. We are eyeing a trading range of RM2.40-RM2.50, based on the similar discount levels offered by recent rights issues in the market. We upgrade our recommendation on the stock to a TRADING BUY from NEUTRAL given the probability of a sustained uptick in its share price over the window period (March 20-26) in order to mitigate the dilution risks.