Don't SELL and don't worry about the price....still another 5 yrs to go...the company is going to grow because they are in the sun-rise business and NTA right now is well over RM1.00
It ought to be on the contrary, cytew. Judging by the volume done these past few days, chances are that the major shareholders would have sold off most of what LAs they have, thus reducing the selling pressure, going forward.
i think it is game over . but i still hold some in hand . and i feel that need to hold at least a year or two . will limit down if the price drop below 6cents . good luck all .
for those who believe that the mother can fall far below 56 cents, then just wait first, but for those who believes that 56 cents should be the floor, then at 7 cents, it is a safe buy.
Dun worry, tomorrow morning quick quick Q at 0.075 if want to run. It normally edge up 0.5 cent before moving downwards base on last 8 trading days trending
concode thanks for the warrant website which show Ire-tex LA is cheapest LA yet trading at 5.08% discount to conversion. Moreover there is 1% coupon to look forward.
Yes, topone the conversion price is 0.60, but unlike a warrant the LA has a nominal value or face value of 0.075. As such you can surrender any of the following for one mother share.
Price Exercise Price Total cost Mother price Premium Expiry Iretek-LA 0.070 0.525 0.595 0.595 0% June 2019 Iretek-WA 0.150 0.800 0.950 0.595 60% June 2019
Given the same features of both LA and WA, both have same expiry date. LA features like a Warrant.
However, Iretek-WA is fetching a premium of 60% (out of money warrant with exercise price at RM0.80), but Iretek-LA is getting NO premium at all.
The leverage of Iretek-LA is better than WA, i.e. with little upfront money (0.07) compared to WA at 0.15, then you can ride on the future profitability of Iretek.
The LA has additional features as compared to the WA.
1) the LA carries a coupon of 1% p.a. (just like getting a guaranteed dividend annually)
2) the holders of the LA are in fact unsecured creditors of the company, which in the event of company liquidation ranks pari passu with all other unsecured creditors (i.e. after preferential & secured creditors but before subordinated debt holders, preferential & ordinary shareholders). The LA holders can claim 0.075 / LA (which is at its face value). The WA holders has no claim whatsoever, in such an event.
LA exercise price is only 60 sen while WA exercise price is 80 sen. LA has a nominal face value of 7.5 sen while WA has zero value. Why still got people buy WA ? ... hahaha
Besides that, on the date of maturity, LA will convert to ordinary shares but WA will become nothing if don't pay additional cash to convert. The major shareholders choose sell all their LA at 0.065 and 0.07, I think they want more LA available in the market, more people buy then pay 0.525 to convert, like that IRE-TEX can get more capital.
Agreed, and at current prices, selling 4WA can get 8LA, and the holder need not have to worry about having to fork out anymore money to get the mother shares, if they choose to convert.
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....
warrior
609 posts
Posted by warrior > 2014-07-14 11:58 | Report Abuse
Time to buy !!! $$$$$$$