so far in the history of bursa, only 1 tech company mkt cap has breached 10billion at one point in year 2000. that is MPI. peak of rm66. now is trading at 4.00 anything beyond 5.00 is already bubble stage for such a cyclical company. the better alternative is Myeg. it would be rm10 or rm20 by end of next year.
In a nutshell, if you believe Dsonic is a superb company that still much undervalue, now CA is still cheap but of course you should try to buy after all smart investors and contra players throw down next Monday to get best price lor. Treat it as 6 months FD lor
Looking at so many negative comments by smart investors, got good chance next Monday morning we can buy near 30 cents lor. If that really happen, I will rest 6 months and wait to collect my return 200% lor
formula fair value for Mother to CA Mother - Exercise Price ÷ Ratio = CA 4.15 - 3.72 ÷ 6 = 0.072
formula fair value for CA to Mother CA x Ratio + Exercis Price = Mother 0.54 x 6 + 3.72 = 6.96
based on the current price, mother is 50%+ cheaper than son, and if i want to Speculate i will only go in at below 0.20. if not go mother better. 100unit Dsonic is only RM400+, benefit is you could get dividen or bonus. CA? non.
Thank Ant and looking at umwog CA, ratio of 5:1, RM2.70, if not mistake and current mother share RM4.30, their CA only RM0.30. My question is how they determine the fair value for CA.?
I made since bought 20 cents and sold 60 cents. That's why now I waiting to collect for FD 6 months. Look at how people trade in Nasdaq , all about potential and not base current price. If you strongly believe in Dsonic, buy CA better. Because even before expire date and mother share doubled to 8.30, you surely can sell CA 1.20 to 1.50. So, how many % return? And RM5000 can buy 10k plus unit. Say you sold 1.20 and bought at RM0.40 next Monday, already how many %? This is derived base on such a strong confidence of smart investors on mother shares mah
Call warrant & Put warrant is not easy to calculate, especially put-warrant. Once must b good in financial product & had knowledge in Option, warrant, swap, future or forward. Many of my friends & relatives won't touch warrant as they don't knw how its function. I need to calculate risk to reward ratio for each of the call warrant before I enter the one most suit me. =)
I know the advantages and disadvantages of CA but if Ant calculation is right, which I think he got it right. The RM0.54 is overprice compare with mother share. Incase of Umwog CA is at par with mother share. RM0.30. I just try to understand it, and not to discourage etc.
It's difficult to estimate a fair price for warrants. For this, 6x0.54 = 3.24. It's up to investors to see if it's worth spending 3.24 for warrants that requires another 3.72 on a mother share that's worth 4.15.
In all said and done, 72 sen seems the TP. Its only 3 days old lah .. You think it will drop to 30 sen for you to pick up? Ha3. There is still so call upside of 17.sen upside to 72 sen from 54 sen. Everyone wants it to drop to 30 sen do csn have snother bull run on Monday! Ha3 If you look at their bonus time .. It's in end April. Assuming the staff says end month teach rm5, then value is about rm2.50. Anyway.. It's a gamble. My guess Monday will end reach 62-65 sen again. The game just started!
Don't lah potong steam bro. I am expecting it to go down by 10 to 20 cents so that I can buy and keep FD mah. TP 72 cents? I think short term susah lah. By end of my FD 6 months maybe 1.20 possible by the way, Gpacket W conversion is RM1.00 if not mistaken, but why its still trading >10 cents ?
Sorry sorry. I dont mean to make every one lose. I just base on the latest comments from smart investors that Monday will turun. So I hope turun first then shoot up later same day. I want evryone to win also although I want to pick up for FD. Sorry sorry ya
You said sumatec is the biggest mistake you ever done in your life. I thought u hv learned your bitter lesson. But your gungho about the CA shows u hv not learn bitter lesson enough. It is so true speculator has short term memory
25th open 0.155 high 0.180 low 0.155 close 0.170 vol 11.997m 26th open 0.175 high 0.270 low 0.170 close 0.270 vol 95.116m 27th open 0.295 high 0.480 low 0.290 close 0.480 vol 117.060m 28th open 0.520 high 0.625 low 0.520 close 0.540 vol 76.625m
26th is the day most people start to enter (day T)
T+3 31/3 or 1/4 (Day T=27th)
Based on son convert to mother rate it is already overvalue (currently)
Profit taking next week, don't chase high just my 2cents
Ant, let me put it into a very simple cerita here. If you are the issuer of this cash settlement CA for such a robust price up Dsonic at only 3.72, what will you do? Look at those Apple CA , when they issue the CA, always the settlement price way way above current market price punya. What does this mean? super high risk of pay to the pants drop right ? So what will you do to hedge ?
What element is easiet for the issuer to control? Can the issuer control the mother pricing where by so many people so confidence and are still chasing the motherhigher and higher everyday since 2 July 2013?
Let say by jan 2015, average Dsonic price at RM8.00, with 100 million CA, the issuer have to pay (0.713-0.15) X100 million = RM 56.3 million .Mana ada orang berani issue CA loh?
With 3 days total volume changed hand exceeding 300 million and assuming the "one" managed transacted 180 million with average 25 cents profit till last Friday, is about 45 million profit in hand already . Of course that amount just good enough for sedia payong sebelum hujan if Dsonic ended RM8 by Jan 2015. How about profit target to make leh ?
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....
Eric_BornToBull
83 posts
Posted by Eric_BornToBull > 2014-03-29 17:08 | Report Abuse
ok, lets not say rm10 la, rm6 still possible ? kikikikki