Dogmatic Digi?

Digi.Com is an interesting counter of late.

Have you watch the nature of its trading for the last ten trading days? Mighty interesting as if big boys are manipulating this counter for some unforseen reason. Real big bucks have been expended to push the counter up and then to leave it fall plumbline at trading’s end.

Digi is an occasional counter, seasonal spurts and falls but mostly getting price traction as time moves on. It is definitely investor-grade stock though day traders could pun it to advantage.

From RM31.00, it has moved surreptiously up the price ladder. Reaching mid-price of RM31.60, it started an erratic pattern-shooting up to RM33.50 only to fell flat and into red territory on the screen.

From 2rd November and today (3^rd November), Digi prices have been better bucking the trend in spite of the soft market brought about by the Greek sycophants and their debt problem. Yesterday, it took in a gain of 40 sen to close at RM32.30 while today  it posted a 18 sen gain to RM32.48.

Let us watch how this counter will perform until Digi’s EGM on 9 November. Will it heave-ho away tsunami-style or will it take on an incremental softer paced upward price movement?

Also, after price ex-all via its subdivision to 10 shares per share of 1 sen each, will it attract top feeders to move up vigorously at the single dollar level to convert into ardent longer term investors of this supposedly well managed company?

Let us observe the possible trajectory; the spurts, spills, rise and fall, won’t we?

Hong Leong Bank-The Dreaded VSS

It has to come. 

After all, Hong Leong as a financial grouping isn’t blue-eyed for many as it does not have a sparkling image. Apart from being seen as ‘stingy’ from the shareholders’ viewpoint as no door gifts were ever doled out in the best of years at its AGMs, and even bank charges are seen as ‘cut-throat’ for many of its account holders and clients. Moreover, staff morale for ex-EON Bank staff has been going down the chute with numerous resignations in the past months, so it seems.

Today, dear Yvonne Chia, to the chagrin of Hong Leong Bank’s permanent staff has unveiled an exit plan- the much dreaded VSS- a devil in the deep blue sea and a hard place!

Let’s see what is on offer.

The VSS payment formula is based on a VSS multiplicant that ranges from 1.4 (for executives) to 1.6 (for non-executives) multiplied by the length of service (capped at a maximum of 22 years) multiplied by the basic salary or 50 per cent of total monthly salary until retirement, whichever is lower.

In addition, the bank is also offering medical relief of up to RM1, 000, reimbursable for a period of six months from the date of separation, and continuation of housing and motor vehicle loans at staff preferential rates for a period of 12 months from the date of separation.

Final approval of the VSS applications at HLB will strictly be based on business and operational requirements.

So, it’s a take it or leave it. 

Or worse, do not take it and you may just get the sack if you are a jack-in-the-box undesirable HLB future material!