The last trading day of CCT was on 16 Oct 2020, Fri, which
closed at $1.65 while CMT closed at $1.91. Here either CMT would either go up
from $1.91 or go down. CMT went down to $1.73 on 30 Oct 2020, Fri.
From the chart of CCT and CMT, the smart money/syndicates/institutions/bigboys
have begun their exit on or about 3 June 2020, Wed which is no coincidence. It’s
hard to make money on or about after 3 June 2020, Wed unless the person is a very
good short term trader. The trend is going down since 3 June 2020, Wed. There
is no sign of the trend reversing as on 30 Oct 2020, Fri but instead still
going down.
CCT holders get their cash on 28 Oct, 2020, Wed from the
delisting and merging with CMT.
Assuming if a person has 10 lots/10,000 shares of CCT and
choose to merge with CMT, the person will get 7200 shares of CMT and $2,590. If
that person were to sell 10 lots/10,000 shares of CCT on 16 Oct 2020, Fri,
which closed at $1.65, he/she would get
$16,500 excluding commission. Had he/she not sold his CCT, the CCT holder would suffer a loss of about $1454
($1.73x7200 shares + $2,590) excluding from having 10 lots of CCT after the
delisting and merging with CMT based on $1.73 on 16 Oct 2020, Fri. The loss is about 9% ($1454/$16,500). On the
contrary, if CMT were to go up, there would be profits for CCT & CMT
holders but it’s highly unlikely given the down trend. CCT holders either become
the vanguard or cannon fodder. In this
instance, CCT holders have become cannon fodders.
Under the trust scheme, CMT will acquire all the units in
CCT held by CCT unit holders in exchange for a combination of new units in CMT
and cash. The consideration for each CCT unit under the trust scheme comprises
0.72 new CMT units and $0.259 in cash. https://www.straitstimes.com/business/property/cmt-cct-unit-holders-vote-in-favour-of-merger-to-form-new-reit
https://www.businesstimes.com.sg/companies-markets/even-before-proposed-merger-cct-and-cmt-have-already-been-diversifying-managers
Summing up, whenever you see any mergers or delisting, this maybe
a warning of DANGER!
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