BJFoods-Biting the Bullet?

Roasting Rights Issue?

Yes, for those who are gung-ho on taking up the BJF rights and warrants, get your cash ready to pay for this rights.

It is really one confidence game. Was it worth the risk or should you have thrown out the OR and collect 60 sen per share offer?

Per lot will cost you RM650.00. Then there is that government tax of RM10 revenue stamp and the dastardly RM5 for bank commission in issuing out the banker's cheque. This means per lot plus overheads will cast you RM665.00.

If that is not enough trouble, you have to go over to Berjaya Time Square and submit the forms before the closing date of 31 July 2012.

Given the low,low demand for BJF, sometime I do wonder what will happen when they let loose the new rights for trading?

How much will the price slump?

Or are they going to push up BJF to attract shareholders to pick up the rights?

Right now the price is just about 25 sen above the rights issue price.

Would buying excess shares be the right strategy to even the odds?

Let us see how they will distribute the excess shares if minority shareholders do not pick up their odd lot entitlements.