3 people like this.

8 comment(s). Last comment by BLee 2017-06-08 00:40

fortunebullz

2,000 posts

Posted by fortunebullz > 2015-04-14 20:15 | Report Abuse

Bought warrant 27 cents amid heavy selling! Sold 33 cents! 22% return!

kcchongnz

6,684 posts

Posted by kcchongnz > 2015-04-15 11:44 | Report Abuse

Posted by donfollowblindly > Mar 2, 2015 10:34 PM | Report Abuse http://cdn1.i3investor.com/cm/icon/trans16.gif

The purpose of this blog is to ask you to chase Insas W (TP 35sen with exercise price RM1) which will be listed tomorrow. Is it worth 57% premium as calculated? Why so high? Why not trade at discount like Pesona W?


35 sen too high for Insas WB? Just sold some at this price this morning to reduce my weighting in Insas and its derivatives. The 35 sen as valued in the article was achieved in less than one and a half months. Still got 4 years 10 and a half months before it matures.

What say you donfollowblindly?

You must understand the value of WB, with 5 years to maturity, has its value in time value, not in intrinsic value. It pays for you to learn about derivatives pricing from me.

kakashit

1,472 posts

Posted by kakashit > 2015-04-16 14:38 | Report Abuse

if risk free rate increases, for example bank negara rate hike, how would affect the valuation of insas-pa?

dragonking

3,496 posts

Posted by dragonking > 2015-04-16 14:45 | Report Abuse

Good luck insas

kcchongnz

6,684 posts

Posted by kcchongnz > 2015-04-16 15:10 | Report Abuse

Posted by kakashit > Apr 16, 2015 02:38 PM | Report Abuse

if risk free rate increases, for example bank negara rate hike, how would affect the valuation of insas-pa?

Looking at the bond valuation formula in the link below

http://klse.i3investor.com/blogs/kcchongnz/71783.jsp

As risk free rate increases, "i" increases and hence the value of PA, P, will be lower. No doubt about that.

But what if interest rate goes down?

Who is so certain that interest rate will go up, and not staying the same, or go down? Statistically, nobody can predict the direction of interest rate correctly and consistently.

Not forgetting that Insas PA can be used as RM1 cash for conversion of warrant.

dingding

843 posts

Posted by dingding > 2015-05-07 00:24 | Report Abuse

Is good time to collect now?

TheContrarian

9,507 posts

Posted by TheContrarian > 2017-06-08 00:03 | Report Abuse

Very good time to collect now.

BLee

900 posts

Posted by BLee > 2017-06-08 00:40 | Report Abuse

@TheContrarian, you really geng, managed to dig out such an old article written in 2015. I have google last month when I am studying all types of warrant, found this article informative..IMHO,we should arm ourselves with info before investing..happy investing.

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