Lesson learned: Don’t gamble with Right issues.

thisarap · 1 Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 12:37 pm

thisarap

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Dear Friend ,This my personal view .Don’t follow through the Right issues because it is really Casino Game . I lost my money (More than 80,000) during this week with CDB:R
Be careful when you dealing with R shares.

2011_NewComer

2011_NewComer

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I lost about 10000 from LDEV rights..after that don't touch rights Smile

I think there are many in the same boat, specially those who bought comb rights around 100. Crying or Very sad

We should learn from our mistakes. And not to repeat the same mistake again.

swan03

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2011_NewComer wrote:I lost about 10000 from LDEV rights..after that don't touch rights

I think there are many in the same boat, specially those who bought comb rights around 100.

We should learn from our mistakes. And not to repeat the same mistake again.

Yes. Same here.

charith82 · 4 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:19 pm

charith82

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That's true. dealing with right issue is always involving huge risk. What i noted about right issue is, if you gonna buy right issue you should buy it on the day when it come to market and you should sell it within same day before it start downward. when a right issue is in downward status don't buy it and it will never go up.

lbnnirmal · 5 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:30 pm

lbnnirmal

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Hay can you explain how could it happens in dealing with rights ??? It may be really helpful for the new comers .....

abp1970 · 6 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:47 pm

abp1970

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Yes, can some one explain the process of right issues..
Is it like warrents?

rijayasooriya · 7 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:52 pm

rijayasooriya

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charith82 wrote:That's true. dealing with right issue is always involving huge risk. What i noted about right issue is, if you gonna buy right issue you should buy it on the day when it come to market and you should sell it within same day before it start downward. when a right issue is in downward status don't buy it and it will never go up.

A good observation.Playing with right is like playing with a time bomb.

rijayasooriya · 8 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:55 pm

rijayasooriya

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abp1970 wrote:Yes, can some one explain the process of right issues..
Is it like warrents?

Search the form.Here is a one link.

http://forum.srilankaequity.com/t6234-meaning-of-right-issue?highlight=right+issue

mingo23 · 9 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 2:02 pm

mingo23

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I have lost for 280K for the CDB.R1 ... I am the biggest loser here I guess....
I soon I will abandon this stock market investing ..This may be not nmy way..
Now PF balance came to 1.6million only...

Roboticfx

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Rights bite the investors. I learned it few months ago by purchasing csd.R0000. Now it has blocked.

Fresher

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Roboticfx wrote:Rights bite the investors. I learned it few months ago by purchasing csd.R0000. Now it has blocked.

they don't bite or swallow investors. it's cos u were too lazy too lazy to know what you were doing before you did it.

There is a reason why rights are traded and it is not to get quick cheap bucks out of them. If you want to try that then forget it if you don't have the skill.

If one plays it right (like the person who sold you rights) then he can have big bucks quickly. but there is someone who will lose a lot on the other side (like you)

lankasecguru

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saw wat hapaned to Soft Logic rights today?

i lost Rs 1 mn today.

my hard earned life time savings.

never buy rights.

Embarassed

Fresher

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lankasecguru wrote:saw wat hapaned to Soft Logic rights today?

i lost Rs 1 mn today.

my hard earned life time savings.

never buy rights.

can you tell me the reason you bought it in the first place?

maddu

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Ow yes. i got today CRL rights and holding it. I'm not willing to buy the rights. So I'm sell it tomorrow with a profit or loss. Most important thing is LESSON LEARNED.

Happy trading...!!

Last edited by maddu on Thu Aug 11, 2011 8:22 pm; edited 1 time in total (Reason for editing : BOLD)

pushpakumara

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thisarap wrote:Dear Friend ,This my personal view .Don’t follow through the Right issues because it is really Casino Game . I lost my money (More than 80,000) during this week with CDB:R
Be careful when you dealing with R shares.

Yes it is very risky. If someone buys he has to buy it at the right price and exit no sooner he gets an opportunity. To do that someone has to be at it all the time to see the price movement. Holding it for a longer time (within the stipulated period) is risky and end up with a loss. (This is my personal experience as I have lost a fair amount in dealings on rights.)

lbnnirmal

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Hay gays wt do u think about the COMB.R0000 at current value ??? Is it worth to buy ???

Chinwi

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I am surprised and very sad to read your comments.

I am a man who earned lot of money using rights.
I may write about rights in this same place may be tomorrow giving some actual examples. Now the time is 12.48 pass midnight.

BTW, Why do you all bought rights from the market if you have no experience at least 3-4 years ?

For the time being remember they are issued not to buy from the market. !
You will get rights FREE OF CHARGE when you hold a particular share when they announce a right issue.
Unfortunately you have paid lot of money to others to buy something they got free. !

Actually you can earn millions from rights . Eg. EAST rights - 2 months ago issued at 10/- Now what is the price ?

I will continue this later. Now the time is 1.00 a.m. in Sri Lanka.

maddu

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Chinwi wrote:I am surprised and very sad to read your comments.

I am a man who earned lot of money using rights.
I may write about rights in this same place may be tomorrow giving some actual examples. Now the time is 12.48 pass midnight.

BTW, Why do you all bought rights from the market if you have no experience at least 3-4 years ?

For the time being remember they are issued not to buy from the market. !
You will get rights FREE OF CHARGE when you hold a particular share when they announce a right issue.
Unfortunately you have paid lot of money to others to buy something they got free. !

Actually you can earn millions from rights . Eg. EAST rights - 2 months ago issued at 10/- Now what is the price ?

I will continue this later. Now the time is 1.00 a.m. in Sri Lanka.

Thanks Chinwi.
Appreciate your comments dude.

Happy trading...!!

CHASE

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I think right is good to earn more money as long as we play
it correct.

I have two rules & this is not only for share market.
This can apply for most of the things of your life.

·
BEFORE YOU ENTER HAVE A GAME PLAN

·
AFTER YOU ENTER HAVE A BACKUP PLAN

kiwi

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Just reading through this topic I am not sure if the right lesson has been learned. Rights are neither good nor bad and as npp quite correctly points out they don't bite or attack anyone. I think that Chinwi when he wakes up will share some valuable insights in how you can trade rights and not lose your shirt. I am very sad to see that readers of this forum have lost substantial amounts of money by purchasing rights at absurd values that bear no connection to the real value. This is made worse by the fact that there was a great post about CDB rights as soon as they started to trade at 40 by Chinwi http://forum.srilankaequity.com/t7814-cdb-rights?highlight=cdb+rights

In essence the question that Chinwi was asking in that post was why were people paying Rs 40 for a right that required the holder to pay a further Rs 70 or a total of Rs 110 for something that you could buy i.e. the ex rights shares for just Rs 70? Its just madness. Its like having two identical mangoes and one is priced at Rs 70 and one is priced at Rs 100 - why would any sane person by the Rs 110 mango hoping to sell that a profit????

The price of the rights at the current 2 or 3 buck mark plus the 70 needed to get the share is what the right is worth as the share is trading at the 70-74 mark.

I hope the lesson that is learned is not that trading rights is bad but to only pay what a right is worth or less. Or use the rights to buy shares that you expect to rise over the coming months/years.

lbnnirmal

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Yea it's true kiwi what do you think about COMB.R0000 don't you think it as a valuable one??? I believe sudden drop of share price due to right issue and after right issue it will go to previous price. Don't you think so??

rangana_mj@yahoo.com

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Hi,

I have rights of CDB purcahsed at the trading...

What will happen to it by next week......

should i need to pay more to get these shares...

can any one comment

kiwi

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Rangana yes you will need to pay more to get the shares, if you bought the rights for the voting shares you will need to pay a further Rs 70 to get the actual shares. What you have purchased is the "right" to buy shares in CDB at a fixed price of Rs 70 a share. If you decide you wont be buying the shares, then your rights will expire and will be worthless after the last day to subscribe and pay the money which is the 15th of August. Here are the dates etc from the CSE.lk website:

Date of Initial Announcement: - 21-Jun-2011
Proportion (Voting): - One (01) Ordinary Voting Share for every Six (06) Ordinary Voting Shares held
Proportion (Non-Voting): - One (01) Ordinary Non - Voting Share for every Seven (07) Ordinary Voting Shares Held
Issue Price: - Rs.70/- (Voting)
Issue Price: - Rs.45/- (Non - Voting)
Qty Offered (Voting): - 6,614,175
Qty Offered (Non - Voting): - 5,669,293
General Meeting & Provisional Allotment: - 25-July-2011
XR:- 26-July-2011
Dispatch of Provisional Letter of Allotment: - 01-Aug-2011
Rights Trading Commences on:-05-Aug-2011
Renunciation:- 12-Aug-2011
Last Date of Acceptance & Payment:- 15-Aug-2011

rijayasooriya

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rangana_mj@yahoo.com wrote:Hi,

I have rights of CDB purcahsed at the trading...

What will happen to it by next week......

should i need to pay more to get these shares...

can any one comment

Brother did ur broker advice to buy those right ? U have purchased right issue without knowing anything about it.

It will not trade next week.

Next monday is the last day for acceptance of payments.

U will loose amount u have already invest if u do not pay on next monday as mentioned by kiwi too.

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Lesson learned: Don’t gamble with Right issues.

1 Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 12:37 pm

thisarap

2 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 12:52 pm

2011_NewComer

3 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 12:55 pm

swan03

4 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:19 pm

charith82

5 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:30 pm

lbnnirmal

6 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:47 pm

abp1970

7 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:52 pm

rijayasooriya

8 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 1:55 pm

rijayasooriya

9 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 2:02 pm

mingo23

10 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 3:04 pm

Roboticfx

11 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 6:55 pm

Fresher

12 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 8:05 pm

lankasecguru

13 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 8:13 pm

Fresher

14 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 8:21 pm

maddu

15 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 8:39 pm

pushpakumara

16 Re: Lesson learned: Don’t gamble with Right issues. Thu Aug 11, 2011 8:42 pm

lbnnirmal

17 Re: Lesson learned: Don’t gamble with Right issues. Fri Aug 12, 2011 12:54 am

Chinwi

18 Re: Lesson learned: Don’t gamble with Right issues. Fri Aug 12, 2011 6:48 am

maddu

19 Re: Lesson learned: Don’t gamble with Right issues. Fri Aug 12, 2011 7:37 am

CHASE

20 Re: Lesson learned: Don’t gamble with Right issues. Fri Aug 12, 2011 8:00 am

kiwi

21 Re: Lesson learned: Don’t gamble with Right issues. Fri Aug 12, 2011 9:20 pm

lbnnirmal

22 Re: Lesson learned: Don’t gamble with Right issues. Sat Aug 13, 2011 10:14 am

rangana_mj@yahoo.com

23 Re: Lesson learned: Don’t gamble with Right issues. Sat Aug 13, 2011 5:00 pm

kiwi

24 Re: Lesson learned: Don’t gamble with Right issues. Sat Aug 13, 2011 8:36 pm

rijayasooriya

25 Re: Lesson learned: Don’t gamble with Right issues.

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