Posted by lamken > 2012-03-23 09:02 | Report Abuse

Fat Cat Tim Buddy : hedge means they holding JCY share (min 30m) to pay for the warrant. When it comes close to expiry, they have to sell it to cash out to pay for the warrant. they can only do it close to expiry, because if they start disposing too early, theres a chance the mother can go up before expiry and they will be in deep shet and have to use cash to cover the difference. People play the warrant as a gambling tool. Buy low and sell high, go in and go out. good for traders. People who buy warrant have to be very alert because its not an investment, its punting.

Posted by Fat Cat Tim Buddy > 2012-03-23 09:05 | Report Abuse

how osk going make money from issue the call warrant?

1. they make money when they sell the warrant to public
2. they make money from commission
3. they hedge jcy mother share ( at least 30 millions mother share )
*jcy mother share up, they sell the share, they make money.

Posted by stockist83 > 2012-03-23 09:07 | Report Abuse

bros, one reason why structured warrants exist is because it has time value of money, which there is a formula to get the price. Layman term, people will buy call warrants when they believed by holding it, the call warrants will be in-the-money going forward. There are market players that will utilise such tools to achieve the maximum returns for themselves by arbitraging between mother shares and warrants. We need not be overly concern with the warrants as long as JCY continues to perform and become an acquisition target of their competitor servicing Seagate! Cheers and Happy Investing!

Posted by Fat Cat Tim Buddy > 2012-03-23 09:12 | Report Abuse

just warn friends about osk warrant, those osk people are sneaky snake.

ask any people that bought DRB osk warrant, i bet they still piss their pants when thinking about it.

Posted by lamken > 2012-03-23 09:20 | Report Abuse

afar_filhaq : they are garanteed to make .45 no matter what the mother price is on expiry. This is assuming people buy their warrants and the mother share price go above 1.30 by March 2013 (which it will for sure). No they are not saying they are sure the mother will not go high in 1 year time. The exercise price 1.30 got nothing to do with the mother share price, it got to do with what price they hedged (collected mother share over the last few weeks). Doesnt matter how high the mother price go by march 2013, they make the same profit (.45 per 2 warrant).

stockist83 : correct. there is no need to be worried about OSK CE at all.

Posted by Fat Cat Tim Buddy > 2012-03-23 09:27 | Report Abuse

lamken, any idea that how much money they going to pay for issuing the CE?

are they going to pay bursa some kind of fee for issue the CE?

Posted by bomblikeme > 2012-03-23 09:30 | Report Abuse

A point to note, if you want to buy CE, although is pretty much traders' game, be ready to know that you must be able to buy/hold the warrants if the price is dropping. If you try to contra it and wouldn't be able to hold it, then be careful. Is just like trading JCY, if you are investing it, you are just waiting for the fruit to grow and ripe and eat it. Just a fair warning..cheers!

Posted by lamken > 2012-03-23 09:42 | Report Abuse

also note that by releasing the warrant, OSK have signaled to the other big players/funds that they are no longer pressing price and the other big boys will have more confidence to buy JCY now. expect a upward movement in the mother price from here on.

Posted by jtpc2006 > 2012-03-23 10:35 | Report Abuse

lamken, the way you explain to us novices on the calculation of call warrants, the formula, who earns, who gets what, at which level, this is great. I tried many times to understand and maybe the one trying to explain did not go about it the way you did, sort of visual management. Now I think this is pretty clear and can apply the same principles to other counters too. This benefits everyone who reads the post here.
I will try to copy and paste your explanation for future reference.
thanks indeed.

Posted by ranacinggey > 2012-03-23 10:43 | Report Abuse

Thanks LAMKEN

Posted by ymj1016 > 2012-03-23 10:53 | Report Abuse

Jtpc2006: yup, indeed!

Lamken: thanks for updating us the info. I think this warrant will in fact benefitting the mother shares more, by attracting more and more momentum to push the price up...the trend already slowly reversing back to the bulls.

Posted by chungkay > 2012-03-23 11:27 | Report Abuse

looking at the performance of warrants which is now up 6 sen, mother share rightfully should up 12 sen....that means osk guys are still suppressing mother share price to collect more. If you buy warrant at 21 sen, you will need RM1.72 to breakeven...It will be interesting to see when JCY board will execute their buy back mandate and whack those guys...

Posted by lamken > 2012-03-23 13:21 | Report Abuse

They are buying their own warrant to create excitement and volume.

Posted by ahyeo > 2012-03-23 17:44 | Report Abuse

I'm curious. The timing of the warrant and JCY Buyback AGM is done so precise timing. Is this a plan between JCY major shareholder and OSK ?

Posted by Fat Cat Tim Buddy > 2012-03-23 20:24 | Report Abuse

i suspect there must be some major shareholder ' lend ' their share to osk, lets say lend 100 millions share to them, and get certain % of interest, if not where did osk get so many shares to dump?

Posted by Kim Yap Lau > 2012-03-23 21:58 | Report Abuse

a good price to enter now?

Posted by afar_filhaq > 2012-03-23 23:54 | Report Abuse

it seems most people target around rm1.35 next week

Posted by Mohd Shuk > 2012-03-25 02:49 | Report Abuse

Saya mahu beli banyak. 1.10 (100Lots), 1.20 (100lots), naik 1.30 lagi (100lots tambah lagi), if naik lagi tambah lagi. If sudah mula jatuh, jual semua. Hidup kena ada strategi. Mesti berani!!!

Posted by lamken > 2012-03-25 08:23 | Report Abuse

All,

Several asian funds have called an urgent meeting today in HK with key figures from JCY (I have verified this to be 100% correct). My guess for the urgency is that these funds are intending to go in next week, if not even from tommorrow.

Those thinking about whether to buy or whether the current price is good- think very carefully and research/seek advice quicky, the longer you wait, the higher the price is going to go up. The conditions are absolutely in your favour and the probality of a major price rise is almost a certainty. The price already tested 1.50 on Q1 results alone and should go back up to 1.50 or
there abouts before the Q2 results is out for the counter to relise the gains from the Q2 results and continue its natural uptrend.

Posted by ahyeo > 2012-03-25 08:44 | Report Abuse

Lamken, any update on Seagate acquiring JCY ?

Posted by stockist83 > 2012-03-25 08:48 | Report Abuse

Thanks Lamken for your prompt information. My fund manager friends from UK (only know those in UK as they were my comrades when I station there) have already started buying in small volumes last week. Lets spread more good news about JCY to more fund managers in Asia and even US, as JCY is juicy target for an M&A especially to companies without growth prospect in the US and Europe! Cheers and Happy Investing!

Posted by lamken > 2012-03-25 09:01 | Report Abuse

ahyeo: Nothing has changed since I last touched on this. It is still very much on the cards, however I cannot comment on this at this point in time until we get closer to the date. This will probaly represent the biggest news story for JCY in its coporate history. There are 2 other major milestones (not talking about the Q2 results) in the short term which will have a direct positive impact on the price, however, again I also cannot comment on these until we near the dates.

Posted by lamken > 2012-03-25 09:06 | Report Abuse

stockist83 : everyone will come to the party eventually. its a question of time. Everyone wants a piece of the pie.

Posted by stockist83 > 2012-03-25 09:22 | Report Abuse

Agree. We hope we can benefit our friends from this forum in a positive manner. Cheers and Happy Investing!

Posted by ahyeo > 2012-03-25 10:18 | Report Abuse

Thanks Lamken. Keep the news flowing

Posted by Mohd Shuk > 2012-03-25 10:56 | Report Abuse

Ini Stock untuk Long Term.... Mesti Naik...Kena Berani cuba.

Posted by lamken > 2012-03-25 19:15 | Report Abuse

For those nervous about the coming GE:

http://www.econ.upm.edu.my/ijem/vol4no2/bab07.pdf

"The results also presents no evidence of stock overreaction behaviour existed in the Bursa Malaysia in the period when general elections have taken place" (page 329).


"The study also finds that Bursa Malaysia overreacts to surprises in political news. Unexpected events namely the removal of the DPM and resignation of PM have caused
investors to overreact. Well announced events like announcement of general election appear not to significantly caused investors overreaction behaviour in the stock market" (page 331.)

Posted by Jjtrader > 2012-03-26 14:27 | Report Abuse

JCY lost momentum drop back to RM 1.17

Posted by tasoke > 2012-03-26 15:11 | Report Abuse

don care la up or down hold till 2 quarter result.

Posted by stockist83 > 2012-03-26 15:21 | Report Abuse

Company buy back operation soon!

Posted by tasoke > 2012-03-26 15:25 | Report Abuse

hopefully all investor to this counter, consider d hold power b4 goin, less contra playing,

Posted by stockist83 > 2012-03-26 15:27 | Report Abuse

Above should be a question meant for Lamken to provide an insight. Cheers and Happy Investing!

Posted by lamken > 2012-03-26 16:09 | Report Abuse

Someone trying to collect low. dont need to panic.

Posted by Jjtrader > 2012-03-26 18:55 | Report Abuse

No panic, just very very sad to look at the HUGE HUGE paper loss (> 60 k) sigh !

Posted by thor > 2012-03-26 18:58 | Report Abuse

That's no meagre amount.How did you let yourself come to this stage

Posted by Fat Cat Tim Buddy > 2012-03-26 19:00 | Report Abuse

today T4 force selling is it?

Posted by Jjtrader > 2012-03-26 19:02 | Report Abuse

still holding it with solid cash just paper loss hope it will rebound soon.

Posted by bbhor2009 > 2012-03-26 19:12 | Report Abuse

Hi Jjtrader, please set a cut loss point for yourself in order to protect your capital if the price keep on going down (just in case).

Posted by Jjtrader > 2012-03-26 19:41 | Report Abuse

still trust lamken, so dun want to cut loss just hold it until the end of the story. No urgent use of the money.

Posted by kcwong8 > 2012-03-26 19:44 | Report Abuse

Today clsg at 1.15. The entry price is 1.12 and above. If the news is cun (accurate), now still a good buy. The vol transaction for the past few days:
*21/3: 11.6mil
*22/3: 9.3mil
*23/3: 9.8mil
*26/3: 3.9mil
Fyi, tomorrow is T-4 for 21/3.

Posted by bbhor2009 > 2012-03-26 20:35 | Report Abuse

Yes. I also hope it market will up as everybody also gain $$.

Posted by Fat Cat Tim Buddy > 2012-03-26 20:44 | Report Abuse

kcwong8 thx for the info =), today is T3, tomorrow is T4, tomorrow there will be more force selling before noon?

Posted by usry > 2012-03-27 08:55 | Report Abuse

last nite DJIA up more than 100 points.. hope it will give some booster to Klse and positive move to this counter also..

Posted by Fat Cat Tim Buddy > 2012-03-27 09:04 | Report Abuse

PNB and EPF keep selling, how to up ah..

Posted by stockist83 > 2012-03-27 10:14 | Report Abuse

http://www.theedgemalaysia.com/business-news/210976-osk-research-jcys-share-price-may-rise-further.html

Posted by stockist83 > 2012-03-27 10:15 | Report Abuse

OSK issued a report, don't what they are trying to do after issuing warrants to their clients at 15 sen? Cheers and Happy Investing!

Posted by Fat Cat Tim Buddy > 2012-03-27 16:46 | Report Abuse

today T4, really drop.. many force selling.

Posted by usry > 2012-03-27 17:21 | Report Abuse

The volume not so heavy..don't worry too much..

Posted by pureland > 2012-03-28 16:47 | Report Abuse

Another piece of article on its potential

http://www.malaysiafinance.blogspot.com/2012/03/finally-stock-worth-considering.html

Posted by mcd123 > 2012-03-28 16:53 | Report Abuse

Thanks pureland,for introducing the blog. Read the article & its good, BUT, enjoy the IMAGES more than the article.