BSEIndia: All Stock Market News: Fw: [sharetrading] Re: BONUS ISSUE Guidance

Saturday, July 03, 2010

Fw: [sharetrading] Re: BONUS ISSUE Guidance

Hi Mr. Ravi,

I heard that Glaxo Smithkline Pharma is going to issue 1:5 bonus soon.

Do you know or have idea when will they issue this?

Regards,

Chan

----- Forwarded Message ----
From: Amrutha Rani <amrutharani37@yahoo.in>
To: sharetrading@yahoogroups.com
Sent: Sat, July 3, 2010 3:29:21 PM
Subject: Re: [sharetrading] Re: BONUS ISSUE Guidance

Ravi ur article on bonus issue is excellent.

Generally most companies declare between july and sept is it right?

Regards

Rani

--- On Sat, 3/7/10, Ravi Deshpande <saharsh1@gmail. com> wrote:

From: Ravi Deshpande <saharsh1@gmail. com>
Subject: [sharetrading] Re: BONUS ISSUE Guidance
To: "Ankit Shah" <ankitr44@gmail. com>
Cc: "Yahoo Group" <sharetrading@ yahoogroups. com>
Date: Saturday, 3 July, 2010, 4:24 AM

3/07/10

Dear Ankit,

There are 5 (FIVE) steps in Bonus issue.

1) Agenda of BOD for Bonus issue.
2) Resolution pass by BOD
3) Date of EGM/AGM
4) Resolution of EGM/AGM
5) Declaration of Record date.

The above events take about 3 - 9 months normally. Every event I mentioned above creates
market hype. Immediately after the above news appears on Stock Exchange Board, the price swings.
Maximum price swing is before Record Date period.

There are exceptions e.g. LOW volume scrips, poor bonus ratio, below market expectation ratio etc. This give less swings.

Now one can make money in each of above event.
Also some people take advantage of Loss booking for I Tax. i.e. Buy immediately on declaration of record date
and Sell Ex-bonus immediately.

In our group, if we can keep track of above events, it will be most advantages o make money.
The swings of the prices are sure shot profits. I t has nothing to do with index/nifty, Tech Chart etc.

The above is true for RIGHTS Issues also, with lesser price sing.

Ravindra Deshpande

On 6/30/2010 9:30 AM, Ankit Shah wrote:
Dear Mr Ravi,

Please can you Guide For How to take Advantage OF Bonus Issues Declared By Companies.

I have seen your messages most for the Bonus Issue.

Example: Merathon NExtgen Reality has declared Bonus ex date is 06/07/2010

it is good to buy at this price in current market if the stock is available for buy.

to take advantage of bonus.

pls guide.

Regards,
Ankit