If the offer price is below RM1, maybe the offer price of warrant will only be 5sen. I will choose to buy mother share. Some more this warrant got strong sell since dec but its mother share price is very stable.
previous buyer trapped selling in aroundRM 0.305, Rm 0.310, with the mother shares shoot from 4-6 cents, and wc only move of 1.5 cents, it is definitely not normal! it will shoot more!!! let's rock!
Can anyone update on the reasons for the present up price & increase in volume transactions? Hv been holding this warrant for some time. Shall I hold on? Any upcoming good news? Tq
curent price of 0.34 represent a premium of just 16.5% meaning the market is just expecting the price of the mother share to be RM1.34 in 2020 (warrant expire in 2020). this is damn ridiculous considering the nav is 2.12 in 2013 and nav in 2020 will be sky high. Director have been accumalting 1,617,000 shares in 4 days
Considering the long expiry date of the WC and the mother share is actually trading below its NAV, the current price is indeed very attractive provided it is still listed by then. But I am just concern that they have plans to take the company private, afterall, the Ong family has a track record of offering "unattractive" offer price to minority shareholders.
Yes, PJ Dev Wc is attractive. It has huge amount of time value. Yes, I also afraid that it is taken private and minority shareholders not given a good premium, because warrant holders will lose all the time value.
That is why I prefer to buy company warrants with low premium, or best still, at discount. Then the risk is low.
jennylee, my comments are for the warrant. And it is based on the post here:
Posted by sephiroth > Oct 22, 2013 10:21 AM | Report Abuse curent price of 0.34 represent a premium of just 16.5% meaning the market is just expecting the price of the mother share to be RM1.34 in 2020 (warrant expire in 2020). this is damn ridiculous considering the nav is 2.12 in 2013 and nav in 2020 will be sky high. Director have been accumalting 1,617,000 shares in 4 days
Need to look at the quality of PJ Dev's assets which made up its NTA of 2.12. If the quality is good, then definitely it is a value buy. If the quality is not good, such as a lot of PPE, receivables, inventories etc which are not too certain of their realizable values, then we have to evaluate in more detail.
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....
socaisocai
153 posts
Posted by socaisocai > 2012-12-27 15:23 | Report Abuse
vol is coming.. privatize again..?