Posted by calvintaneng > 2014-08-25 10:28 | Report Abuse

YES! WARRANT IS INSTRUMENT OF BULL MARKET! IN BULL MARKET WARRANT AMPLIFIES GAIN BUT IN BEAR MARKET WARRANT EXACERBATES LOSSES!

IN MRCB CASE THE UPSIDE IS MORE THAN DOWNSIDE

Posted by Angel_Investor > 2014-08-25 12:26 | Report Abuse

Wellsay Kcchongnz!

Posted by lcwin > 2014-08-26 21:21 | Report Abuse

Hope newbies read this with a bowl of salt. Warrant are great for its leverage but it will sent you to poor house many time faster if you make the wrong buy. I am not disputing Kchongnz article here. I just want to add this buy warrant only on very good stocks. Speculative and crony infested stock with questionable intergity is best avoided. When the market turns south you will see all your hard earn money burned doubly fast. Overvalued warrant is another case to avoided. Just look at the active warrant stock being traded at stupid price now.I will not name any as it will not be fair to the investor concern so buyer beware.
Be very selective when you play warrants and the reward will be spectacular. Before you want to tell me "what do you know advising others". I specialise on Warrants play and I never touch anything if it is not very sound and undervalued with spectacular result. Anyway I will once in a while leaves tip for investors willing to listen to help them make wiser decision.

Posted by adriansim > 2014-08-26 22:49 | Report Abuse

Any advice for newbie like me? WA with premium < 10% can consider as undervalue?

Posted by lcwin > 2014-08-27 10:33 | Report Abuse

Hi Adian Simple, First and second step make sure stock is good then ONLY you look at the warrant,then as long as premium is not over 20 to 25% with at least 2 year life. Warrant below 1 years life preferable with little or no premium. Leverage if less then 30% I wouldn't bother buying. This is just a general guideline for warrant investment.
Market now in liquidity bullrun so you see pigs flying.Becareful as I don't see much opportunity to make big gains. If you follow my rule of thumb in stock investing, buy only if the stock have at least 50% upside and 15% downside risk. Sorry no reccomendation for stock as I am unloading slowly. HaHaHa.....

Posted by adriansim > 2014-08-27 22:08 | Report Abuse

Thx,Icwin. I am now learning to understand more about WA. Pmetal WA premiuim is -2%. Then,can consider cheap? Is it correct to buy a WA when mother share price up but WA drop?

Posted by lcwin > 2014-08-28 14:47 | Report Abuse

buy only if you think mother share is good. As long as premium and life is within acceptable limits it is not important. Read again what I said earlier. I think I shouldn't comment about Pmetal as I missed it due to high absolute price compare with what I was playing. If you still think it still can make 50% or more from now then it should good.

Posted by adriansim > 2014-09-05 21:52 | Report Abuse

How to know at least 50% upside and 15% downside risk?

Posted by lcwin > 2014-09-08 20:09 | Report Abuse

Yes this is where you do your homework. Research the company report see broker report then get a rough estimate of target price likely possible. Downside look at how well they manage the company historically and assets if any will be a plus.Companies with Lots of cash usually will think of ways to waste it so beware. Anyway generally hot stock and stocks played by instituition are best avoided. Crony and milk cow stock used for fixed deposit usually held by politician trustees. So you end up with only about 20% stock worth looking at. Trust me 2% is more than enough to make good money. Been there made my cash many times over. But I can't give any tip at the moment as I am unloading my stocks as I find market overvalued. If possible trade through a broker and get some advice as it cost you slightly more but if he is good you got yourself a finacial consultant for peanuts!

Posted by dragonking > 2014-09-08 20:54 | Report Abuse

buy warrant only if you think mother is going up, with lots of margin of safety (MOS).

Posted by adriansim > 2014-09-10 22:13 | Report Abuse

Will dividend affect WA price?