ok, so lets do some simple calculation. u have rm10000 in hand. in order to make sure the total spending wont exceed your capital, u bought 32 lots of hapseng warrant at 1.24 which cost you rm3968. then u convert it to mother by adding exercise price 1.65 for each unit which cost you rm5280 (1.65*3200). so, u have 32 lots of mother shares in hand now with total spending rm9248 (3968+5280). current mother price is rm3 and u have 32 lots which total market price is rm9600. not much, u just earned rm352 (9600-9248) which equal to 3.5%.
juz simple calculation already showed that you saved 3.5% if you buy warrant and convert, rather than buy mother directly... Imagine how much we saved if we have 100.000 Rm to buy the warrant...
4u2c berlanja makan perhaps? ha will earn more soon, mother breaks rm3, and someone just bought 3k lots mother around 4.41.11pm, i think is company buy back activity, if yes, then really a big good news for begining of 2014!! everyone huat r!!!
Hi. I have one question here. Hope somebody can share with me their knowledge.
Hap Seng has new high of RM3 per share few days ago. While the warrant have new high of RM1.29. Exercise price is RM1.65.
What i am concern is the company buy-back policy is currently trigger the limit of 10%. So they currently have a lot of treasury shares in their book, what are they going to do? Bonus issue?
Let say, they are going to issue bonus issue of 1:1 to lower down the treasury shares hold (hope i think is correct, if i am wrong, pls correct me), so indirectly the share price will drop after the issue. Let say to RM1.80, is that going to affect the warrant badly? or there will be changes of exercise price? will it possible to lower down the exercise price?
Warrant is entitled to bonus or right issued. Hence no effect on bonus or right issued. Warrant will not entitle to dividend only. For right issue, the exercise price will be adjusted accordingly. Thank you.
I cant afford to sell this share anymore. I bought as such a low price and every tqtr i hv at least 20 pct gain !!! Great share ! but all on paper .....plan to see, but always held back....now i want to reenter some more ....
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....
Investeye
2,347 posts
Posted by Investeye > 2013-12-28 11:17 | Report Abuse
This is quite similar with Tambun-wa (expire date at May 2017). Convert to mother share just rm0.60 !