I wrote here that I sold Lufax (LU) because the company adjusted the conversion price of their convertible debt. What I did not realise was the share split that happened last year was the main reason for this. I was under the impression share splits would automatically adjust options, convertible debt etc. And nowhere in the 6-k was the share split mentioned. And the conversion price was ~$12 as of January 2024. So I jumped to conclusions and kind of lazily assumed this was an attempt to screw minority shareholders.
Additionally Ping An will have very little room to increase their stake after receiving the stock dividend if they do not want to trigger a mandatory takeover. So I think I was a bit premature in my judgement on this stock, and am reopening the idea (luckily at a lower price) here. Sometimes it pays to be sloppy. In my defence I am currently researching several dozen stocks among other things and Lufax could have communicated this more clearly.
Disclaimer: Readers of this blog should do their own due diligence before buying or selling any of the mentioned stocks, since I have been wrong before and cannot guarantee all information in this write-up is 100% factual. I may buy or sell the above mentioned stocks at any time. Past success is no guarantee for future success. Some of the stocks mentioned might have poor liquidity, so make sure to check average daily trading volume before buying or selling anything. I am not your financial advisor.
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