Sunday, April 2, 2017

AEM Brings Its Shareholders Good Tidings: xbi before xd

AEM’s xd is on 18 May and its xbi is earlier on 7 Apr. This means shareholders can enjoy more dividends from it. My interpretation is that the major shareholders, from AEM's anticipated explosive earnings growth, want to pay out more dividends to themselves as well as to all other shareholders and hence making xbi before xd.

Exactly how much will shareholders get for dividend?
For this 1 (additional) for 2 (old) for bonus issue, 1 AEM share will become 1.5 shares after bonus issue and you will get 1.3x1.5 = 1.95 cts per original one share you have owned before or on 6th April 2017. With closing price of 31 Mar 2017 (Friday) at $2.11, the yield is 0.924%. Not really fantastic compared to capital gains from the share itself, but this is extra pocket money to me, why not embrace it warmly?

How to calculate the theoretical market value after the bonus issues?
For this 1 for 2 bonus issue, if the price of AEM on 6th of April (Thursday) is x, then on 7th April, the price should be changed to two-thirds of x theoretically if there is no gain or loss in investment.
e.g. if the price on 6th April is $2.10, it should be 2.1*2/3 = $1.4 on 7th April.

What is next for AEM's price movement from here?
Given the high growth of AEM, I am anticipating the management will announce new sales order soon and it should help in propelling the share price further.

Based on the closing price of 31st Mar, I have made a profit of more than 120%. I am confident I can make more from this brilliant investment going forward.

Refer to my three earlier articles on AEM:


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