What will be the price of TWOD after the XC date?

ccsentha · 1 What will be the price of TWOD after the XC date? Sat Nov 17, 2012 5:12 pm

ccsentha

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What will be the price of TWOD after the XC date?

current price is 15.5, so after the XC date the price should be ((15.5*2) + 8.75) / 3 = 13.35
is this correct?

so who ever buys TWOD before the XC date would end up with profit, isn't it? (Theoretically)

cost of buying 2 shares before the XC date = 31

sale after XC date(after the bonus is credited) = 13.25*3 = 39.75, so there would be a profit of 8.75......

the question is will the price be 13.25 after the XC date or will it drop further down?
(Open for experienced experts to comment......)

hunter · 2 Re: What will be the price of TWOD after the XC date? Sat Nov 17, 2012 9:49 pm

hunter

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In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Fresher · 3 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 7:14 am

Fresher

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hunter wrote:In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Almost right, but you should consider the capitalisation price 8.75/- as well. S/H don't pay but it should be considered. Correct me if I am wrong.

hunter · 4 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 7:28 am

hunter

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npp wrote:

hunter wrote:In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Almost right, but you should consider the capitalisation price 8.75/- as well. S/H don't pay but it should be considered. Correct me if I am wrong.

You're better equipped to make the conclusion Very Happy

Well, this is how I reason it out...

Scenario -1: What if S.H.s paid 8.75? Then we need to consider 8.75.
Right?

Scenario-2: What if S.H.s didn't pay a cent? Can it be the same as Scenario-1?
Cannot be; right?

Scenario-3: What if they paid 8.75 as dividend and issued 2:1 rights at 8.75? Is it the same as Scenario-2?

Whatever.., there will be different judgments among us and it will lead to heavy price fluctuations for sure around XC.

Last edited by hunter on Sun Nov 18, 2012 7:38 am; edited 1 time in total

Fresher · 5 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 7:36 am

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I get your point, and think it is right since it is paid out of reserves.

Slstock · 6 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 8:03 am

Slstock

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As far as assert are concerned they remain the same as this 8.75 is accounted for by moving existing assert only.

So technically unlike a right issue new money won;t come in. Number of shares will increase but asserts the same.

I did mention in another post when this was trading at Rs 19-20 (which had a long discussion ) that if market takes this negative TWOD can be valued at Rs 15 . seems we are there now.

So after capitalization if market remain further negative in lethargic december , this could head to Rs 10 or even below based on current value . On the other hand TWOD financials and (some one said) court case is pending. ( not sure of the date for court case is near and how long this is going to drag) . If they give some positive news this bonus can give you some positive return.

Summary : Practically we expect bonus to be a positive thing. But it can go negative depending on market situation. We have seen this before.

hunter wrote:

npp wrote:

hunter wrote:In my view, since there is no money transaction in involved, price should be 15.5*2/3= around 10/-.
Theoretically, there shouldn't be any gain or loss. However, as I expect, price will heavily fluctuate before coming to a stable level enabling opportunists to grab some profit.

That is my opinion.

Almost right, but you should consider the capitalisation price 8.75/- as well. S/H don't pay but it should be considered. Correct me if I am wrong.

You're better equipped to make the conclusion

Well, this is how I reason it out...

Scenario -1: What if S.H.s paid 8.75? Then we need to consider 8.75.
Right?

Scenario-2: What if S.H.s didn't pay a cent? Can it be the same as Scenario-1?
Cannot be; right?

Scenario-3: What if they paid 8.75 as dividend and issued 2:1 rights at 8.75? Is it the same as Scenario-2?

Whatever.., there will be different judgments among us and it will lead to heavy price fluctuations for sure around XC.

hariesha

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I would like adding something to slstock idea.

We shouldn't rely on theoretical prices in a volatile counter like TWOD. With the split number of shares is increasing. Public holding of TWOD is more than 70%. After XC date quantity to be sold will increase by 50%.

So all will depend with the mindset of the prospective buyers. Will the mindset adjust to accept 50% more?

traderathome

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yes there will be selling pressure to bring to the current prices down...unless the buying interest overtakes for some reason which market only can explain Very Happy

got a small qty....in my PF

TAH

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What will be the price of TWOD after the XC date?

1 What will be the price of TWOD after the XC date? Sat Nov 17, 2012 5:12 pm

ccsentha

2 Re: What will be the price of TWOD after the XC date? Sat Nov 17, 2012 9:49 pm

hunter

3 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 7:14 am

Fresher

4 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 7:28 am

hunter

5 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 7:36 am

Fresher

6 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 8:03 am

Slstock

7 Re: What will be the price of TWOD after the XC date? Sun Nov 18, 2012 10:43 pm

hariesha

8 Re: What will be the price of TWOD after the XC date? Mon Nov 19, 2012 12:55 am

traderathome

9 Re: What will be the price of TWOD after the XC date?

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