When investing in stock market, inevitably we will come across dividends, bonus issue, rights issue etc.
Companies will announce such exercises through Bursa announcement and it usually contains a few dates. These dates can be confusing especially for beginners.
Lets study these dates with real examples.
Unit trust or mutual fund is a pool of money collected from individual investors and managed by fund managers, who invest the fund in various investment vehicles either locally or/and abroad.
I didn't have any idea regarding financial planning and investment until I graduated from university in 2004.
While waiting for employment, I read a book "Financial Freedom" published by Public Mutual (formerly KL Mutual) and there was no surprise that I bought unit trust first.
There was also no surprise that my first unit trust was bought from Public Mutual.
There is no doubt that property and stock market are the two most popular investment not only in Malaysia, but all around the world.
Which one is a better investment?
A successful property investor will tell you that property investment is better and stock market is too risky.
A successful stock market investor will tell you that stock market is better and property is too slow.
When I started my investment journey, I started with unit trust and then stock market. The reason is simple, how can a person with a saving of RM7000 and monthly salary of slightly over RM2000 invest in property?
After a few changes, Jaks has finally fixed the entitlement basis of its rights issues with warrants.
Before this on 9th September 2020, Jaks released a circular to shareholders in relation to its rights issue and it seems like the management revised it again.
The "illustrative" rights share and warrant entitlement has changed to 3 rights shares for 1 ordinary share held, together with one "free" warrant for every 2 rights shares subscribed.
The illustrative issue price for each rights share has been reduced further to 12sen from 22.5sen.
Such plan will see a substantial increase in Jaks outstanding shares from 0.65 billion up to 3.2 billion before the new warrant conversion, and 4.4 billion after full warrant conversion!
Summary for September 2020
Portfolio @ End of Sep20
Finally I sold all my BAuto shares. This is another one which saw a 50% paper gain turning into 27% paper loss, almost the same fate as Hevea.
However, I still manage to register overall gain from these 2 investments, thanks to their high dividends.
When I bought BAuto in Oct15, it was for its growth potential, not its dividends. I predicted that Mazda could overtake Nissan as the third largest foreign passenger car brand in Malaysia.
Up to today, Mazda is still behind Nissan, although the gap has narrowed. Mazda's strategy to build a more premium brand image and keep a higher profit margin has hindered its progress to overtake Nissan.
Slowly BAuto has turned from a growth stock to a dividend stock. As I only want growth at this stage of my investment journey, I decided to sell since last year but only manage to sell now after its share price has dropped so much.
