HNB rights issue ?

babytrader · 1 HNB rights issue ? Thu May 05, 2011 10:17 pm

babytrader

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Just wondering what will happen to the HNB share price due to the the HNB rights issue ?

.... HNB price has been on the decline since the share split .. i am wondering if this is a case of , some knowing about the right issue before the announcement ?

milanka · 2 Re: HNB rights issue ? Thu May 05, 2011 10:28 pm

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And along with the rights they are going for a PP @ 235/= per (ie : Min Price) voting share.
http://www.cse.lk/cmt/uploadAnnounceFiles/3651304600045_373.pdf.

StocksWatch · 3 Re: HNB rights issue ? Thu May 05, 2011 11:07 pm

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I am sick of these rights issues really...luckily I don't hold this share...If they really want to go for rights issue, why can't they make it more attractive atleast?

chamith · 4 Re: HNB rights issue ? Fri May 06, 2011 12:26 am

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HNB....

The brother of SEYB....
Still SEYB directors sneeze when the shareholders hear the name SEYB right issue. I dont really get the point. Why would these directors come up with these unattractive right issues, They suppose to at least maintain the shareholder's value..... Well HNB shareholders can watch what will happen to SEYB in few days n decide what to do....

Monster · 5 Re: HNB rights issue ? Fri May 06, 2011 12:51 am

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StocksWatch wrote:I am sick of these rights issues really...luckily I don't hold this share...If they really want to go for rights issue, why can't they make it more attractive atleast?

Yes, StocksWatch. You are correct. Just look at the current share price and the right issue price. It's similar to SEYB. I lost in SEYB than any other shares in my portfolio. If you take SEYB, why we should subscribe the right issues. Voting share is trading less than right issue value and non voting share is almost equal to the right issue. What a great right issue announcement they have made. Just look at LDEV, last nine month EPS is Rs. -2.40(Negative). But share price appreciated more than double after the announcement. But SEYB, with strong fundamental, going down day by day. SEYB right issue will fail unless they have some other alternatives.

Slstock · 6 Re: HNB rights issue ? Fri May 06, 2011 1:05 am

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[quote="Monster"]

StocksWatch wrote:SEYB right issue will fail unless they have some other alternatives.

Monster,

I beleive I already mentioned couple of time in the forum that SEYB migth have a pre arrangement with someone about the rights subcription. They care %^$^% about their minority holders. I still see SEYB a future growth bank but the way they are handling this issue with regard to their small share holders is very discouraging. "Bank with a Heart" Evil or Very Mad

Monster · 7 Re: HNB rights issue ? Fri May 06, 2011 1:15 am

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[quote="slstock"]

Monster wrote:

StocksWatch wrote:SEYB right issue will fail unless they have some other alternatives.

Monster,

I beleive I already mentioned couple of time in the forum that SEYB migth have a pre arrangement with someone about the rights subcription. They care %^$^% about their minority holders. I still see SEYB a future growth bank but the way they are handling this issue with regard to their small share holders is very discouraging. "Bank with a Heart"

slstock,
It's not me. Wink

Even I noticed, jaya posted in another thread.
For you information
http://forum.srilankaequity.com/t3081-seyb-right-shares-to-chinese

Slstock · 8 Re: HNB rights issue ? Fri May 06, 2011 1:25 am

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[quote="Monster"]

slstock wrote:

Monster wrote:

StocksWatch wrote:SEYB right issue will fail unless they have some other alternatives.

Monster,

I beleive I already mentioned couple of time in the forum that SEYB migth have a pre arrangement with someone about the rights subcription. They care %^$^% about their minority holders. I still see SEYB a future growth bank but the way they are handling this issue with regard to their small share holders is very discouraging. "Bank with a Heart"

slstock,
It's not me. Even I noticed, jaya posted in another thread.
For you information
http://forum.srilankaequity.com/t3081-seyb-right-shares-to-chinese

Ahh, yes.Thanks for the link. Maybe Jaya will be proved right?

I hope HNB holder won;t loose fuirther as we did with SEYB. I see the share price already dropped after the split. Especially the HNB.N.

Below is what I said on April 16th

"Regarding SEYB,

I am not sure on this ( please don;t quote me) , but am not sure whether SEYB hassupport some pre arrangement with institutional/HNW support to subscribe for their rights completely at their offered prices if the retailers fail. If by XR date if the SEYB price don;t not go up to make the right issue attractive that means there is no push. In turn it could mean what I said before. The way SEYB have acted with a 1 Rs Dividend then rights issue and then and delayed announcement of right issues dates it appears that way right now. If you look at OSEA and LITE, the right issues would have been failure as OSEA was trading at right price of 15 and LITE at 8. SO essentially the right issue would have been unsuccessfull in our eye. At least in the OSEA case I heard that their mother company bought all( most) remaining OSEA rights on a pre arragement. Am wondering the same for SEYB???

I really HOPE NOT, as a small investor as I already lost considerable money on SEYB due to this right issue. I hope they will protect their smaller time investors like myself and many. I know after talking to some on the forum they loss money on SEYB too right now. After this loss if they want even more money from me ( for rights) hmm...?

Note : To be unbiased, if n ot for this right issue mess to date, I believe SEYB to be a good long term bank with low PBV and decent earning with improving financials. It was attractive before the right issue. The right issue with influx of more capital should make the bank stringer for the future."

http://forum.srilankaequity.com/t2755-brief-analysis-of-the-banking-sector

Monster · 9 Re: HNB rights issue ? Fri May 06, 2011 2:10 am

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I presume HNB will drop due to right issue.

Coming back to SEYB. I agree it's very good share for long term investment. But in short term. I don't think it will make happy it's minority share holders. Neutral

Remember, approx. Rs700 mn is expected to be incurred for VRS. Another approx. Rs390 million is to be invested on CSD right issues.

Disclosure : I do not HNB shares. But I do hold SEYB shares in my portfolio.

chamith · 10 Re: HNB rights issue ? Fri May 06, 2011 2:22 am

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i m not planning to subscribe for seyb right issue as there no point. If the price go up to a certain level then i will consider. Otherwise i dont wanna spend more money on this bank with no heart...

Monster · 11 Re: HNB rights issue ? Fri May 06, 2011 2:27 am

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Monster wrote:I presume HNB will drop due to right issue.

Coming back to SEYB. I agree it's very good share for long term investment. But in short term. I don't think it will make happy it's minority share holders. Remember, approx. Rs700 mn is expected to be incurred for VRS. Another approx. Rs390 million is to be invested on CSD right issues.

Disclosure : I do not HNB shares. But I do hold SEYB shares in my portfolio.

Just an alternation to my previous post. Razz

I presume HNB will NOT drop due to right issue.

tubal · 12 Re: HNB rights issue ? Fri May 06, 2011 9:02 am

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If ever there was a candidate for short selling here it is. We have seen what happens to shares that announces unattractive rights issues. Just look at SEYB (more on this at http://forum.srilankaequity.com/t3328-one-flew-over-the-cuckoos-nest).

The only way that HNB.N can move up now is through an artificial push. Such pushes were rediculously easy with LDEV and WAPO, two companies that have very small market capitalizations but it would be very difficult to push HNB which is in the top 10 in terms of market cap.

with short selling HNB would be a great opportunity to make a killing in a bear market.