Thursday, December 02, 2010

Keck Seng : Is Bonus Issue A Bonus ?

After making a huge gain from disposal of Parkway, many investor expect Keck Seng to announce some good news.

Keck Seng finally announce it will giving out bonus issue of 1 to 2 in it's latest announcement.

It's share price has react positively to reach all time high of 6.50 in Wed.

Bonus issue actually is not bonus to investor, it has in fact increase the share base of the company but the market cap is still the same. it has 0 effects on the value of the company.

But i still 'hold' on to Keck Seng, hopefully the real GOOD news will be announce later.

1 comment:

Anonymous said...

By using the reserve from retain earnings to give a Bonus Issue is to Capitalise the reserve and no longer can be use to pay back to shareholder unless they decide to do a Capital Repayment in which case wld require a court approval process. This type of Bonus Issue is of no benefit to shareholders. Sor Hai Board of Directors. Hmm those Old Hecks...