As a general rule, if you are a self confessed newbie it's usually not advised to deal with warrants until you have researched them thoroughly. Becuase warrants are designed to be hedging tools and are meant to obtain gains from share price movements without actually buying the shares themselves and at a fraction of the cost of the mother share.
Both Macqauaries and Nagawarrants have pretty good information so check them out.
@cannon-im not sure about PA exactly but usually it's a naming and numbering convention.
First it's used to give it a separate identity from the mother share and second it usually denotes a number in a series.. for example this is warrant PA if they issued another later it will probably be PB, then PC and so on.
Anyone feel free to correct me if I am wrong.
@jamesgk and @cannon.. yes this can be converted into the mother share but as a general rule it's not advised to do so.
There are generally only 2 reasons to do a conversion.
1) the obvious reason is that its deep in the money. 2) the company starts to declare dividends and you want to increase your stake to obtain those dividends.
Warrants give you the right (but no obligation) to purchase a share at a specific exercise price (EP)
To convert a warrant, you must look at its EP for ageson its 0.13.
In other words, you would need to pay ageson 0.13 for ever warrant you wish to convert to a share.
Sounds like a great deal right since the market price is 0.15. But you must realise that you have paid a premium to buy the warrant. Since you call yourselves newbies it's unlikely you got the warrants at 0.01 when they were first granted. If you were to buy them off the market at yesterdays closing price they would cost you about 0.035.
So your cost is now going to be 0.165 for the warrant and EP. Furthermore, there is also a conversion fee which you would need to pay over and above the 0.13. (I am not sure but I believe its 10% so it's another 0.01 in cost)
It will be cheaper to buy from open market at 0.15 and pay brokerage fees.
Now say you have the warrants at 0.035 and ageson mother is stable at 0.50. Then it does sound reasonable to convert the warrant at 0.175 and sell it immediately for the 0.325 profit.
But as warrants follow mother they should be selling at about 0.375 with buyers asking for it at 0.37. So If you were to sell your warrant direct to the buyer you would gain about 0.335 (will be lower after deducting brokerage fees)
Another headache with warrant conversion in malaysia is it takes 1 to 2 weeks to be done.. so what happens if the price falls in that time?
That being said the process is relatively simple. Just contact your broker and ask him to provide you the necessary documents to fill out. You will need to fill out the forms and courier them to provided address.
It's easier with rakuten accounts as those are nominee accounts so you just tell rakuten that you want to exercise warrant and they will take care of everything. Someone once said the benefit with rakuten is you could save on courier fees for the documents :)
Just seeing, the figure is really alarming but some countries r saying they found a vaccine so pls start giving it 2 countries, where the deaths r increasing
PUTRAJAYA: No local Covid-19 cases were reported by the health ministry today, making it the first time local transmissions have reached zero since the second wave of the virus in Malaysia.
But there was one imported case, bringing the total number of cases to 8,640. This involved a 21-year-old Malaysian returning from Turkey.
In a press conference, health director-general Dr Noor Hisham Abdullah said 21 patients have recovered, bringing the total number of patients discharged so far to 8,375, or 96.9% of total cases.
Noor Hisham said the one case recorded today, the lowest since the second wave of infections on Feb 27, reflected the public’s strict practice of self-regulation and social responsibility.
However, he reiterated that the pandemic was still affecting other countries, saying another wave of infections could happen here if people became lax in adhering to the ministry’s instructions.
“The health ministry wants to stress once again that the cooperation of all parties is needed so that we can break the Covid-19 chain of infection in Malaysia,” he said.
He expressed confidence that Malaysia could continue notching zero local cases for the next 28 days, provided the public adhered to the government’s SOPs.
He said Putrajaya intended to open all sectors as the country further progressed through the recovery movement control order (RMCO), adding that the health ministry will be monitoring schools as they reopen on July 15.
Noor Hisham said the health ministry had identified the individuals under home quarantine who had failed to go for their second screening on the 13th day of their isolation.
“We will locate them and ask why they didn’t come. We have their data and we know where they are,” he said.
China — A new strain of the H1N1 swine flu virus is spreading silently in workers on pig farms in China and should be “urgently” controlled to avoid another pandemic, a team of scientists says in a new study. H1N1 is highly transmissible and spread around the world in 2009, killing about 285,000 people and morphing into seasonal flu.
H1N1? Please stay in china or where ever you are! This time if still chinapig import pandemic to malaysia, we will hoot your china forum until no daylight!
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....
DatoSeriJohnnyWalker
145 posts
Posted by DatoSeriJohnnyWalker > 2020-07-01 10:01 | Report Abuse
Yeah guys, buy it while still undervalue, later above 30 cents dun be a sourgrape.