Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Friday, November 26, 2010

Sunway & Suncity: Which to buy...?

A fren today asked which to buy and at what price..? Here's a guide..
Generally, it's a buy when market price is below Sunway Sdn Bhd's offer price. Yet you want to buy at a huge discount cos' you're going to be holding the risk of market downturn from now until Sunway SB merge the two listed companies Sunway Holdings Bhd & Sunway City Bhd into a new company and relist it in Bursa ( possibly next year.?).

Trading in Sunway and it's warrant may be more liquid but you want to observe which gives the best discount if you intend to buy and hold till relisting of new company.
1). We all know the offer price for Sunway is RM2.60 and Sunway warrant WC is RM1.50
Mkt price today for Sunway is RM2.27 lowest and Sunway WC is RM1.28 lowest so Sunway is traded today's low at (260/227 => 1.145 ie, 14 % below offer price) and warrant is traded at (150/128 =>1.172 ie 17 % discount)
2). Offer price for Suncity is RM5.10 and Suncity warrant WA is RM1.29
Mkt price traded today for Suncity is RM4.49 lowest (510/449 => 1.136 ie 13 %) and for warrant WA is RM1.11 lowest (129/111 => 1.162 ie 16 % )

Here's a guide for a 20% off from offer price (2.60/ 1.50/ 5.10/ 1.29) for easy trading:
Sunway at RM2.16 Sunway-WC at RM1.25
Suncity at RM 4.25 Suncity-WA at RM1.07