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| Riding A Curve Ball of Profits |
Today's AGM and EGM meetings of LPI was certainly fast and furious.
It started at 11 am and the whole thing including the extraordinary meeting finished just before 12 noon.
As usual, after the highlights of the financial year and the MSWG questions, you get only praises for Teh Hong Piow and how much money LPI is making from year to year.
So, the bonus of 1:2 has been approved by capitalising the reserves.
After a sharp fall of more than 50 sen in the morning, LPI settled at a price of RM 22 when trading stopped at 5 pm.
The bonus will go ex on 20th March and the entitlement date will be 24 March.
What would be the ex-bonus price of LPI be?
For a person holding 1000 shares, he will receive another 500 units.
RM 22,000 divided by 1,500 units comes to possibly RM 14.66 per share.
Anything above that price will be a bonanza.
Assuming that LPI goes ex- bonus at RM 15, that means a 1,500 holdings will fetch RM 22,500.
RM 500 is a small bonanza.
