Any stock guru here? Rights issue question

yongtoufu SG

Sorry for noob question but recently one of the stock I have issue rights (Rowsley) and I'm not sure what to do about it.

I use poems to trade but that was suay suay 2yrs or so ago when I bought in and lost like 70% of my portfolio. After that I never follow or play shares at all... just treat it as gone..

I also forgot my CDP password liao cuz so long din touch and the CDP site say need 3 days to reset for me. duh. so I can't check at the moment.

What I need to know is will the rights be auto updated in my CDP and how do I sell it off with Poems? (cuz poems dun reflect the rights)

Or do I need to actually exercise the rights first and then later sell it as a share?

Thanks for any help! Sorry for the noobness :(

knightlll SG

Knight to the rescue !

http://www.singaporestocks.com.sg/

bladez87 SG

rights is issued by company. u can exercise the rights to buy the stock at the rights price or u can just sell the rights to someone who wants it.

yongtoufu SG

Hi bros, thanks for the replies.

That much I understand but am wondering how the technicalities of selling my rights thru poems as it is not reflected there.

Any ideas?

eagle SG

hi, I'm not any guru, but I can share what I know... that

you can sell off the rights immediately

Poems won't reflect it simply because it's a trading platform. The portfolio is only updated if you have bought or sold shares through poems; it's only for your personal management. It's the CDP who holds the information as to what shares you are holding. You can buy the shares through DBS Vickers and sell it through poems as long as it is out of contra period.

If the rights are already trading, you can sell them because that means you have been most likely credited with the rights.

Btw, are you referring to CitySpring rights?

yongtoufu SG

Thanks bro eagle.

I am referring to Rowsley rights issue.

I have bought the shares in the past thru poems and it is reflected in my portfolio. However, the rights aren't (maybe in CDP it's there), that's why I'm wondering how am I able to use poems to sell it. I can see "Rowsley R" in the poems stock list and can buy and sell it like a normal share, but how do I get my entitlement rights reflected in my portfolio for selling? If I just put up a sell order when it is not reflected there, wouldn't that be shorting it?

Do I have to do anything (like subscribe to the rights or fill in some forms) to get the rights or is rights issue automatically credited to me?

Some of my friends say I must first exercise the rights and buy the share at discounted price, then sell it off as shares.

I thought I can just sell of the rights itself without needing to put in more money. Really a noob that's why only know how to lose $$ :(

eagle SG

yes you can just sell off the rights in the market

For poems, you can edit the portfolio manually if you want to use the portfolio to track

Acct Mgmt -> Portfolio -> Edit

From there, you can add, delete or amend quantity of stocks bought. But it doesn't change what's in your CDP.

Fyi, you don't need to have the rights reflected in your portfolio before selling.

yongtoufu SG

Thanks again, bro eagle.

I called Poems up today and the broker there told me that as well. As long as you have that amt in CDP, you can put a sell order up in Poems for it.

Appreciate your help!

eagle SG

no problems

Btw, market just rewarded me with a chiong on Fuxing ytd (25% increase) and today CapCommTrust (total 14% increase liao) :)

Now I waiting for Starhill :)

yongtoufu SG

Wow! Nice returns ;)

Good ppl deserve gd rewards... lots more to come!

eagle SG

Starhill also rise liao :)