IJM CORPORATION BHD (IJM) INVESTMENT HOLDING, CAN GET POCKET MONEY WITH NO RISK ?!

JUICY is holding 10,000 shares of IJM for investment purpose for quite sometimes, year in year out, JUICY is getting the dividend payout and ride the paper gain and paper loss exicitement on the cyclical.

JUICY is cracking her head to source pocket money for year end holiday trip. JUICY grumbled to her friend on shortage of fund for holiday trip. Her friend said, " Sell your IJM and buy ICP, you will get your extra fund". JUICY whispered to herself, " Selling shares to get money, who don't know A for Apple ! ". Her friend then explained to her how to earn this arbitrage profit.

With the privatisation plan of Industrial Concrete Products Berhad (ICP) by IJM, IJM offers ICP shareholders the following :

1 share of ICP, given 0.6 new share of IJM and cash of RM 0.26

Assume brokerage is 0.6%, the market price of :
IJM RM 4.36
ICP RM 2.32

By selling IJM, she would have RM 43,281.32. Then she could buy 18,000 shares of ICP, amouting to RM 42,065.09. Here is the first pocket money, RM 1,216.23 (43,281.32 - 42,065.09).

After the exercise, she would have new IJM share, 10,800 (18,000 ICP X 0.6) new IJM shares and a cheque amounting to RM 4,680 (18,000 ICP X RM 0.26), here comes the second pocket money.

In a total, she is having RM 5,896.23 (RM 1,216.23 and RM 4,680) for the two cheques. And she is still having 10,800 shares of IJM in her CDS Account, an excess of 800 shares than previous holding.

Hooray, said JUICY. She is now planning for her trip.............Bali Trip...yeah.....