CA prices will depend on the mother price. The higher the mother price, the higher will be the price of CA.
So if the mother price is expected to go up then the CA will follow.
If you feel good about the mother share then it is good to buy the CA. The risk is that the CA expires end of Nov 2020. But you have the right to convert the CA into mother shares.
Over the last 29 yrs of my trading in convertible warrants like CA i did not convert the warrants into mother shares..i.just trade on them and sell them before the expiry date.
At the rate the mgt is developing the business, i m not at all surprised by the time the 1st qtr of Dec21 results are out, the mother share would have hit RM8.50. And with that CA wld will double to 38 cents from today's close of 18.5 cents.
We are lucky that Greatec is run by a bunch of good and capable people.
it doesn't make much different between CA & CB gearing level. At the time being, CA premium level should stabilize , unless more IBs come out with better parameters
Pls ignore the conversion part of my write-up. The explanation i got was not clear and thinking it is similar to the normal warrant WA, WB etc. Anyway i shall just trade on it.
don't buy CW which have spike the last 2~3 days because the profit taking activity will follow after that.
don't add CW when it is trading sideway or down trend. If down trend, sell & buy low again (intraday short sell). If not, you have to undergo the pressure of watching your profit narrowing, from narrow profit to become breakeven, from breakeven to become loss. kinda depressing this process. Intraday short sell allow you to recoup some capital provided you can do it sucessfully.
if the mother share takes until 30/11/2021 to reach RM8, basically the CA is worth RM 0.18~0.19 only. The premium will decreases over time & become discount near the expiry.
some ppl, after considering the "future" money that they suppose to earn 6~9 months down the road already materialized will degeared from CWs.
@小糖 in which this case, CA price @ 0.22 was already materialized.. i got the CA at 0.110 but the price now seems going down.. contemplated if i want to TP or not
Greatec was a top performer during the Rat year and i strongly believe it will put up another remarkable performance in the Ox year. Have another exciting year!!
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....
IMwhatIM
567 posts
Posted by IMwhatIM > 2021-02-08 12:01 | Report Abuse
CA prices will depend on the mother price. The higher the mother price, the higher will be the price of CA.
So if the mother price is expected to go up then the CA will follow.
If you feel good about the mother share then it is good to buy the CA. The risk is that the CA expires end of Nov 2020. But you have the right to convert the CA into mother shares.
Over the last 29 yrs of my trading in convertible warrants like CA i did not convert the warrants into mother shares..i.just trade on them and sell them before the expiry date.