As said in an earlier post, I applied for my entitlement and also for excess rights to make up the full board lot.
Just checked my CDP internet account and realized my excess application was successful. I was rounded up to a full board lot! Great, for it would have been an irritant to deal with odd shares.
Yup! I hate odd lots too. Especially too bonus shares issues that don't addd up to rounded lots.
ReplyDeleteI remember I had to sell at a substantial discount at the odd lots market each time I wanted to sell.
I think that's why they are people making good arbitrage trades by buying odd lots at a discount and accumulating them into full lots for resale.
Requires patience though. Hey! with SCB no minimum commission, I may want to explore a bit when I have lots of free time next year!
A lot of people on HWZ was also concerned about ending up with odd lots; but I was confident that Mapletree would not screw the minority unitholder. I told anyone who was willing to listen that if you apply for excess, it will be rounded up. My faith was not misplaced. Not only was my PO application rounded up, I also got 1 extra lot.
ReplyDeleteSMOL - I dun think SCB allows you to do trading on their trading platform. At least I haven't heard anyone talking about it. The best way to trade odd lots is still through POEMs Unit Share market which charge $10 per transaction.
Hi SMOL,
ReplyDeleteI was just looking at the poems unit share market, gosh, the spread is so wide!
Also, what Paul says is correct, unless you have temporary counters like KepCorp100, ARA10 or MIT20, you can't buy odd lots from SCB.
Which is why i think the "board lot" concept is outdated and absurd.
Hi Paul,
I have to say I was concerned I wouldn't get rounded up too. But with the recent market selldown, I guess there was a higher chance of us being given full lots, as other investors shy away from this PO :)
Thanks Paul!
ReplyDeleteI use POEMS and that's where I sold my odd lots.
Imagine selling SGD 100 worth of penny shares odd lots and commission is SGD 10! #$$%$&#!
Have not got chance to check-out SCB yet. Thought if the commission is low, I can patiently collect the odd lots and make some arbitrage money. Cannot liao :(
Oh well...
I have a theory that Mapletree kinda figure they have enough to round up the minority unitholders. Because foreign unitholders could not subscribe to the PO, their entitlement would have been used to fulfil the excess application for us to round up to broad lot. Of cos its just a theory. :)
ReplyDeleteSMOL,yes I know what you mean but what you gonna do? POEM's unitshare is still the cheapest. A few brokerage is starting to offer odd lots trading but it still cost the usual min $25 which is infinitely worse! I tends to buy to round up rather than sell to round down.
Market sell down are excellent time to transact on the unit share market!
Excellent company.
ReplyDelete