Hopefully the gap with mother closes well. At prices of mother and WB just now, and extending from the example illustration, WB at 32sen will match the return of Mother at 50sen + WC at 24sen combined. WC price is the decisive variable. If WC is not high enough, the rights + WC combo could fall behind WB %gain, say when mother is 60sen or higher.
WC quantity will be 1.7bn based on minimum subscription of rights i.e. 3x that of WB (itself 4.7x that of WA).
factor these with respective exercise prices of 40sen (indicative), 16sen (my est.) and 29sen (my est.) and you might be able to form your own valuation of WC.
DreamConqueror, do you know if WA also received an extension to its maturity date in the last RI? I am in this only 2mos and this forum has such a vvlong archive.
clarification : ... from the example illustration, WB at 32sen will match the return of Mother at 50sen + WC at 24sen combined.
shd read:
from the example illustration, WB bought at 32sen will match the return of Mother bought at 45sen at such time after ex- and listing dates when Mother is at 50sen + WC is at 24sen combined.
DreamConqueror, do you know if WA also received an extension to its maturity date in the last RI? I am in this only 2mos and this forum has such a vvlong archive. _______________________________________________________________________
WA only got extension to 2021 a few weeks ago. Before that, its scheduled expiry was 2017.
A counterview to conversion? ------------------------------------ Between now and until the RI gets confirmed by Bursa, there is a case for warrantholders to not convert. The current gap to mother is 10-10.5 sen, narrowing from an even wider 13sen for extended periods recently. Prior to the counter's plunge, it was only 6sen. So, the run-up to the RI has inflicted a 4-7sen "penalty" on the warrant price.
Now if the RI eventually materialises, then there is a good case for conversion, albeit not in all cases because it does depend on the holder's average cost per warrant, the exit TP and WC price.
However, if the RI fails to go through, and one had converted prematurely, the "penalty" is realised. It would have been better to just hold the warrant to not sacrifice the recent extra gap/differential.
One contrarian's opinion only. Have a nice long weekend.
Dreamcon sudah sakit... mimpi mau jadi kaya ... HANCUR BERKECAI... his warrant be now only 20.5 cents... sikit hari lagi ini wb... jatuh bwh 10 cents just like csl
Apa nak sakit pulak. Gua tak macam lain orang yang mudah terikut lu punya provocations suruh cut loss.
Gua tak da jual, tak da loss. Lagi pulak gua punya starting average price 21 sen. Belum even paper loss pun. Lu tau kira ka. Lu novice newbie apa yang lu tau, woi.
But suna today ... yeah its wb is just 25 cents .... 1018200 units only worth about RM254,550. So he makes only about lower than 40k after GE till now..while still losing 120k-20k = 100k before GE.... ini macam ... macam pro yg tak pro... kahkahkah... main saham hancur...tapi... kita kasi dia chance komen pakai dia punya loyar buruk.... hahaha....old man, with a kid mentality... rock man...haha
Betullah tu... 21 cents... now 25... untung cuma below 40k lepas GE.... kahkah... cakap berapi... mulut penuh air liur... haha... api pun padam... haha... dc... the greatest joker of suma
Its funny why so many asking about Sumatec Warrant.I guess many couldn't bother to read the remarks given here. I already advise those holding WARRANT TO SELL OR SWITCH TO MOTHER SHARE if you still believe in Mr HS. So this round after I comment if you didn't take action then sorrylah ....smile you been sodomised by HS twice! ahahahohoh....no ky required ask sifu bukakaki how its done. and remember if you don't wash your ass can get rich ah! but need to see Naji first ok? Ok one last time W is overprice if you want to play switch to mother. You can alway see my comment by searching for my name here to see more comments on Warrant but remember I am not a certified FA or Accountant!
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....
DreamConqueror
5,150 posts
Posted by DreamConqueror > 2014-09-08 15:59 | Report Abuse
It will play catch up again, next time.