Nil-paid rights and excess rights: Some numbers by LP.

LP, blog master of Bully the Bear, and owner of the infamous cbox therein, has this to share:

I think that people don't understand that the price of the nil-paid rights (right shares that are entitled to you based on your holdings upon XR of the mother share) is priced as this:

Price of mother share - 0.155

If it's lower than the above formula, it opens a chance to arbitrage the difference by buying the nil paid rights or shorting the mother share. Either way, equilibrium will be achieved to bring the price of the nil-paid rights back to the stated formula.

So, if the mother share is trading at 0.225, the nil-paid rights will be priced at 0.07. You pay 0.07 PLUS brokerage to get the nil-paid rights, then you pay at the atm 0.155, so the price will be 0.225 excluding brokerage.

Or on the other hand, if you can buy the nil-paid rights at 5 to 6 cts, you are buying the mother share at 0.205 to 0.215. Good deal to me even if you have to pay brokerage!

If you don't want to do this during the nil paid rights trading period, you can always opt NOT to pay any brokerage and paying 0.155 to apply for excess rights. But you might not get it.

Tea with AK71: Income from blogging.

I have blogged about this before but it is timely that I revisit this topic as JW (aka momoeagle), the blog master of Wealthbuch, took it really hard when Adsense decided to stop working with him recently.  I believe that he would look past this unpleasant episode in his life as a blogger and soldier on in good time. :)

I started blogging out of curiosity and boredom last Christmas Eve and I have been hooked since.  I suppose I really enjoy writing and I enjoy sharing my ideas with people. On 10 March 10, I blogged that "I didn't know I could make money from blogging. However, I did discover quite quickly that there are many ways of making money through a blog."  Adsense, it seems, is the predominant way for most bloggers to derive some income from their blogs.

LP, the blog master of Bully the Bear was one of the first people I made contact with in blogosphere.  He told me how he was unceremoniously banned by Adsense.  Later on, I was told the same thing by my friend and blog master of Time to Huat.  So, you don't see any Adsense ads in their blogs.  So, fearing that I would suffer the same fate, I decided to remove Adsense from my blog.

I enjoy blogging and if I do make money out of it, I consider it a bonus. However, since I do not make much from blogging, it would have a lower priority when compared to other activities which I derive most of my income from.  We live in a world which runs on money.  So, we have to be realistic sometimes, if not most of the time.  The day I could derive an income of mid $X,XXX from blogging every month like some famous blogging personalities in Singapore, blogging might be the only thing I'd do. In fact, I was told that Xiaxue could make $XX,XXX per month from blogging!

The fact is I am a financial blogger and we have a very small niche.  Financial bloggers in Singapore have even a smaller niche. 20,000 pageviews or more a month like Xiaxue's blog?  Not in my lifetime, realistically.  Well, I suppose if I colored my hair like Xiaxue and wrote catchy songs about floods in Orchard Road like Mr. Brown, I could improve my blog's readership numbers. Hmmm, I wonder... Nah.

I can only hope that my readers would visit my sponsors (Nuffnang's ads), give my ZUJI banners a chance when planning to go on an overseas trip and feel generous enough to make a donation (Donate to AK71 pocketmoney fund on the left sidebar) towards my blogging efforts.  So far, I have received small sums of money from all three avenues.  Thank you for the bonus. ;-)

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