I still remember very well the volatility of gloves at that time. Calvin really has the wisdom, keeps the records and does his homework very well. Salute
You said "After IB banks have bought enough glove shares to hedge then only glove bull run resumed"
If what you said is from reliable sources, they should have learned the painful lesson, the big bosses should have scolded the managers and from then on they would buy mother shares immediately to hedge against any call warrants that they sell. Logically the history will not repeat so soon on plantation counters.
And myself believe that from the very beginning, the Issuers want "Sure Win" and "Kia-Su", they immediately hedge against any call warrants that they sell.
Sell Call Warrant without hedging or so-called Sell Naked is subject to unlimited losses.
Actually mkt is bearish & mkt is also skeptical of the commodity bulll run of;
1.CPO 2. Steel 3. Crude Oil 4. Crack spread 5. Aluminum, Tin and Copper
Thus mkt is taking a cautious approach to its sustainability mah!
If say CPO continue to perform at above Rm 5000 going fwd and the management has good corp governance & pays good div to reward shareholders, I m sure the Plantation share price will continue to go up mah!
Even if the CPO price come down to Rm 4000, I m sure the impact on plantation share price is minimal as currently it is not overvalue mah!
Currently with all food inflation in the world plus limited land available for future cultivation due to the environment concern, plantation valuation & its land will be valuable loh!
On market financial theory, Calvin is 100% correct. i3 gambler is totally wrong ! IB bank issues cw for the purpose to gamble with ikan billis. In gambling world ,the bankers must make sure they are on the advantage to make money from customers .So simple !!! Like that also don't know ! Pasar old lady selling kuih also know the secret !
Beltland, skoh888 in his post have explained that "profit is derived more from the market making and spread activities". The Youtube video link that I put here also explain IBs would not earn money that way. What to do with the Pasar old lady selling kuih? You look down on them? What an arrogant person you are. Telling what financial theory? You are joker?
Beltland, True, I am jobless for more than 10 years already. My "full time job" now is trading call warrants and future index. So, no need another job.
Warrant issuers have deep pocket and network of equally deep pockets players to move shares prices just before or on the maturity dates. Not sure the Oversight body has the knowledge, resources , standards, spine, character & will to monitor and control these manipulation. Singapore oversight body could be more through and may punish any wrong doing so the prices there are more reflective .
Jayatiasa doesnt have so called options or warrants, why it suffers heavy retreat?
Though some say jayatiasa result is lousy, but Jan-March is their seasonal low, yet generate better cash flow compare to 21Sep quarter amidst lower production, thanks to higher CPO price.
so I still cant figure out any valid reason for the 40% drops. What's your view on Jayatiasa and Suburtiasa?
What is the key diff in ownership & management between Bplant V Jtiasa leh ? Bplant reward its shareholders by distributing reasonable dividend whereas Jtiasa siphoned cash & profit for its own major shareholder profit mah!
In other words even if Jtiasa going to make good profits, they are not going to share any with u loh!
On the other hand, u can rely on Bplant for its good corporate governance mah! And right now Bplant is actually making more monies than Jtiasa loh!
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Investformilkmoney
1,008 posts
Posted by Investformilkmoney > 2022-05-29 18:13 | Report Abuse
Thanks Calvin, in short, stay out of warrants, except those issued by the company itself.