Traders who have no capital to convert will sell off for a wee bit of profit. Those with holding power and have the capital to convert will earn maximum amount. :P
Today WB will surely open higher at 40+ cents and move towards the 46 cents level as it's been officially announced that the conversion price is lowered by 65 cents.so buy & make some good money while you can. TP 60+ cents.
hold. hold. hold. Regardless on how they try to press the WB price, it cannot be done because the price is determined by the mothershare prices. they will try and press mothershare price.. If WB exercise price is 1.85, and you bought them WB at 30 cents, this would mean mothershares need to drop to 2.15. I dont see that happening.
SP Setia-WB shot up like crazy and now trading with 4 sen premium with less than 1 month before expiry.WCT -WB on the other hand ,trading with a 15 sen discount with over 4 months to go.
Is it worth to go in now at 39 cents ? Will mother price holds after we convert, since it will take at least 10 working days !!
Last time, TMS mother was at high price, warrant at low price, by the time convert, the mother price dropped like a 10 tonne brick !! In the end mother price and warrant price, not much difference.
WCT 4Q is suppose to be good according to report as they will revalue the paradigm mall (new mall so not yet revalue (land, building etc)) and book the gains. The price gap of 15 cents is strange as if the market is predicting the share to fall by 15 cents anytime soon. Well for value investors the 15 cents gap presents a good arbitrage opportunity, sell WCT and buy WCT-WB.
Usually for warrants, during mother price fall, it will not fall as much, but during mother price rise, it will stake some time to catch up. For warrant players will notice this trend.
WCT-WB price rise is so sudden that a lot of people are cautious on the sustainability, if the price moderate and stabilize, I believe the price gap will close soon.
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....
anulus81
276 posts
Posted by anulus81 > 2012-12-11 09:40 | Report Abuse
yeah...my bad...