Can keep the WA for now, its cheap and has long maturity date to go. Also, islamic and takaful banking are blooming now, so no harm to keep these banks. Look at Takaful Ins, riding very high now!
There is a price to convert the warrant to mother share. On top of my head, it's around $4.70. If you add the price of the warrant, it'll be $5.40. The mother share is only trading at around $4.10, so there is a premium of $1.30. The warrant might not go up as much as you hope.
Should the mother share goes up to $6.00, approx 50%, the warrant could go up by 100%
derrick : It applies to all warrants since years ago. Check all your warrants - there is a conversion price. For Call Warrants, I noticed that most requires more than 1 CW + Exercise price. If you check on top of the page, there's an exercise price of $4.72 for this one.
It's hard to say if you bought the right/wrong warrant. It expires in Dec 2023 (on top of this page), so you'll have another 9.5 years to see if the mother share shoots up. If BIMB doubles by then, you warrants could quintuple (5x) or more, so you got the right warrant. If BIMB does not go beyond $5.45 then yeah you got a bad warrant.
This Wa is out of the money currently. But i feel that its premium is 33% and a gearing of 6.06x. But its shelf life is another 9.5 years to go, i think to hold it long term will be in the money very soon, given the robust growth of Islamic banking.
If you bought this warrant, forget about it and look in about years time. The daily fluctuations and dips can be very frustrating. Sell at loss only if you absolutely need the money or have insider information on a counter that's gonna go up for sure.
Pencensalary : dont worry, be happy.... though u had bought at such a high price, there are people who had bought at its peak of 90sen. Just wrap up this stock and put inside yr fridge, reopen it in December for surprises! If u keep thinking of it, one day u will get heart attack.
iwarrants .. at 0.655 ..premium now at 33.71 ( 4.02 mother ) still ok ... ada 9 year ++ to go ... and bimb need cash punya pasai the divident not much 1 ... can say ok ... see how la
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....
chang21
436 posts
Posted by chang21 > 2014-02-17 15:43 | Report Abuse
RM1.20 by year end ....... just watch and see.