MMAG-WB: Exercise ratio = 1:1; Exercise value = RM0.20; Current share price = RM0.56
The price required to convert to the stock = ( warrant price ✘ ratio ) + Exercise value = ( 0.24✘1) + 0.20 = 0.44
The price for the warrant to be converted into shares is RM0.44, but according to the 24/3/21, 11am mother stock price of RM0.56, there is a premium of -RM 0.12, which means that the price of the warrant to be converted into shares is cheaper than buying the shares directly in the market.
How to calculate premium%? Formula = [(warrant price✘ratio) + Exercise value – Shares price ] / Shares price Premium % = [(0.24✘1) + 0.2 - 0.56] / 0.56 = -21.43%
In other words, it is 21.43% cheaper to convert into shares with warrant than buying the shares directly in the market.
Conclusion: MMAG-WB --- undervalue and still worth buying at this stage!
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....
Ian Lim
109 posts
Posted by Ian Lim > 2021-03-10 12:54 | Report Abuse
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