BJF: An Unfinished Journey

Salving despondency?

Truth be told.

I am disappointed at the price of  BJF as it opened ex-all. It finished half a sen up at 97 sen on a volume of 6,041 lots done.

Mostly, I was sore with myself for reading the signals not too correctly. A lot of things have changed when I played counters with impending rights issue and it gets more confused when they priced in a free warrant.

Not so bad-lah

So, I spoke to my remisier. What gives, I asked her.

Then, she explained to me that these days rights are  also adjusted.

For BJF, the last price done was RM1.43. The impending rights are priced at RM650. If you have paid RM1,430 and need to pay RM650 again, then the total outlay will be RM2,080. So the ex price for BJF should be RM1.04.

However, the price ex at 96.5 sen, short of  7.5 sen.

So where did that 7.5 sen go?

According to my remisier it could be priced in the Offer of Rights (OR) which will trade from 17 July until 23 July. After that if you keep the OR, you need to  get a bank draft and buy into your entitlements.

The question is everyone who has bought the share above 96.5 sen seems to have lost a bundle has lost out to those who did not take the rights and warrants.

Can that be true?

Let us see the revelation in days to come.

One thing I am sure, the new rights issue will be traded pari passu the current ex price. At today's price, you can only gain 32 sen per lot. So hopefully it will go up after all those weak sellers depart.

Then there is the question of the warrants. By now, the details should be out. We would want to know the conversion price and period for conversion. May be it will be on the Bursa site soon and we can sell these for good returns too.

The game has just started and so do not be too despondent or defeatist.

It is always darkest before the dawn.

We still have great hopes in the OR, the traded warrants and the eventual rights issue.

If BJF prices stay moribund, not many will take the rights especially those with fractions.

My SOP will be to apply for excess to enhance my potential returns. This may convert my loss to profit.

Fighting back, bugallo

By then, my wounds would be richly healed! Hopefully....