dydxequalszero
:
DBS is a very good company but it’s not a goldmine. Today’s price drop is just a normal correction as the price has risen too fast and high in recent weeks. What goes up must come down. That’s why never chase a stock when it has risen too high. It’s also not wise to average down now by buying more because it’s still a premium. Wait till after ex-date of bonus then buy will be the best. On that date, the price will dive. If can pick up around $30 will be a good deal.
dydxequalszero
Nomoredota
OP
:
Hi, actually bonus share issue is not really a bonus. Companies issue bonus shares to lower their share price so their shares becomes more affordable to retail buyers. By issuing a 1 for 10 bonus share, the share pool increases by 10% so the share price will re-adjust by 10% downwards. The total value of the shares will be the same.
dydxequalszero
unfilteredtruths
:
I think it would. Markets have a tendency to fall more than expected because of the fear and panic factor. As a stock is falling, nobody knows how low it’ll go and people have a greater tendency to sell lower instead of risking not being able to sell at all so they will lower their selling prices.
dydxequalszero : DBS is a very good company but it’s not a goldmine. Today’s price drop is just a normal correction as the price has risen too fast and high in recent weeks. What goes up must come down. That’s why never chase a stock when it has risen too high. It’s also not wise to average down now by buying more because it’s still a premium. Wait till after ex-date of bonus then buy will be the best. On that date, the price will dive. If can pick up around $30 will be a good deal.
Nomoredota OP dydxequalszero : https://www.straitstimes.com/business/dbs-q4-profit-up-2-to-239-billion-proposes-1-for-10-bonus-issue
dydxequalszero Nomoredota OP : Hi, actually bonus share issue is not really a bonus. Companies issue bonus shares to lower their share price so their shares becomes more affordable to retail buyers. By issuing a 1 for 10 bonus share, the share pool increases by 10% so the share price will re-adjust by 10% downwards. The total value of the shares will be the same.
unfilteredtruths dydxequalszero : Food for thought: do you think the share price will fall by MORE THAN 10% after bonus shares ex-date?
Similar to past dividends, share price takes a few dollars plunge after ex-date. I would imagine that to be the same for bonus shares.
dydxequalszero unfilteredtruths : I think it would. Markets have a tendency to fall more than expected because of the fear and panic factor. As a stock is falling, nobody knows how low it’ll go and people have a greater tendency to sell lower instead of risking not being able to sell at all so they will lower their selling prices.
unfilteredtruths dydxequalszero : I share the same sentiments. Got my popcorn ready to watch the show![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
YouNWA dydxequalszero : Thanks for the advice