Blog: kcchongnz's comment on “The best run companies do not pay a single dividend”

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2 comment(s). Last comment by kcchongnz 2015-06-22 11:14

Why_leh

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Posted by Why_leh > 2015-06-22 11:09 | Report Abuse

Why out of money warrants MRCB-W(14.5sen, 100% premium) & BIMB-W(34.5sen, 25% premium) should worth more than dividend paying Xinghe(7sen)?

kcchongnz

6,684 posts

Posted by kcchongnz > 2015-06-22 11:14 | Report Abuse

Posted by Why_leh > Jun 22, 2015 11:09 AM | Report Abuse

Why out of money warrants MRCB-W(14.5sen, 100% premium) & BIMB-W(34.5sen, 25% premium) should worth more than dividend paying Xinghe(7sen)?


The value of warrant is not just made up of its intrinsic value. it has a time value. The time value can be very large depending on the volatility of the underlying stock, the time to maturity, gearing etc. You need to have some knowledge of how the value of a warrant is derived.

But nobody says it is worth more than your Xinghe. There are many factors, and uncertainties.

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