In finance, a warrant is a security (a form of contractual financial instrument) that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. A warrant is worthless after the expiry date.
The important features of warrants: • Exercising: A warrant is exercised when the holder informs the issuer their intention to purchase the shares underlying the warrant. • Premium: A warrant's "premium" represents how much extra you have to pay for your shares when buying them through the warrant as compared to buying them in the regular way. • Gearing (leverage): A warrant's "gearing" is the way to ascertain how much more exposure you have to the underlying shares using the warrant as compared to the exposure you would have if you buy shares through the market. • Expiration Date: This is the date the warrant expires. If you plan on exercising the warrant you must do so before the expiration date. The more time remaining until expiry, the more time for the underlying security to appreciate, which, in turn, will increase the price of the warrant (unless it depreciates). Therefore, the expiry date is the date on which the right to exercise ceases to exist.
When mother share is moving in an uptrend, buying warrant can have a higher percentage gain. Conversely, when mother share is on a downtrend, warrant will yield a much worse loss.
Expiry date: 11/06/2018 Exercise Price: RM1.14 Last closing price WB: RM0.445 Total cost of acquiring YTLP WB and exercising conversion: RM(1.14 + 0.445) = RM1.585 Last closing price of YTL Power share = RM1.61
Saving through warrant conversion: RM0.025
The conversion process takes over a week.
Please be aware of the timeline of conversion to entitle to 10 sen dividend as announced by YTL:
“Holders of Warrants 2008/2018 are reminded to lodge with the Company's Registrar, YTL Corporation Berhad of 11th Floor, Yeoh Tiong Lay Plaza, 55 Jalan Bukit Bintang, 55100 Kuala Lumpur, their subscription forms and subscription monies for subscription of new shares by 5:00 p.m. on 19 October 2016 to qualify for the above dividend entitlement.”
The price of WB is expected to drop by close to 10 sen some days before 19/10/2016. One must therefore exercise conversion or sell off the WB before that.
skayQuestion,... should one take profit now or wait for the dividend? At this point, capital gain is more than the dividend one is going to get. After dividend, price will drop again and can pick it up again.
studno5isnt the dividend is automatically give out to shareholder upon the date of annoucement? do you have to inform them that you own their share so as to entitled the dividend?
or this msg from FairandReasonable above is about buying additional new share now prior to the actual dividend giving day?
sorry please educate.thanks.
imoogi99FairandReasobable message refers to the ytlpwer-wb, the warrant. You need to convert the warrant to the mother shares before the specific date to get the dividend. Dividend will be automatically given out to shareholder of the mother share.
titusimmogi99 is right. Me bad. I'm holding warrant only. Don't have mother shares. I have sold 50% previously. Parking another 50% to sell from the balance. It is hard to move & s kay is right too. Normally after dividend, mother will drop and this will affect the warrant. So selling it off. I do hope ytlp can go to 1.70. Wishful thinking? ^_^
steveI think profit taking now would be a good idea
titusmatched yesterday. Only left 25% of total i previously hold.
Qogirmm... profit taking , so you all decided to jump ship, don't want the decent yield at this price .....
steveProfit take first. October will be a new month until dividend issuance. End October budget announcement. What's in store for ytl power??
titusQogir, i'm holding the warrant. It does not entitle for any dividend. Anyway, I have cleared all my warrant. A quite decent returned.
Tan Toh FeiFinancial result looks ok, profit margin better, i will hold a bit longer for a while and see where it goes....
takashi86My god, sterling pound drop like hell...60% ytlp earning from uk...good dividend but for sure lower income for future.
steveLooks like price might drop further even before ex-date.. hrmm... maybe better to profit take now
imoogi99Wow....such a huge blockage at 1.64. Fake or real????
imoogi99Still blocking to collect more today? Much higher volume than yesterday.
imoogi99Hmmm.....big volume buy at 1.63 from seller.....what they're up to? Accumulation or distribution?????
steveAfter dividend of 10c, share price drop 10c... luckily profit take earlier.. will it go back down to 1.40s?
Kean Meng Limi thought ex date for div is 31st Oct? so fast run away
yongchYes u r right....tp1.35-1.40!!!surely buy more than before!!!kikiki
Angielim9955yongch, do you know shareholders can get free parking at hotel majestic ?
because as we know now parking fee is crazy expensive in KL area . some members here know parking is free ?
Jasmine FlowerMay I know do I need to hold certain amt of share only can attend the meeting?
Angielim9955Jasmine Flower, any amt can go agm . but I need to know whether they can let us park as free or need to charge parking fees because park there very expensive one ?
thilaTake the train to KL KTM station and walk across to the hotel to attend the AGM.
yongchAngielim9955, seems u not rcvd AGM notice...u must b min 1000units share then yeoh's family give away free meals voucher 50 n free parking lo...this is very stingy familys lo...further more free parking only for 1st-50th car based 1st come lo ...if u r ytl,ytl power n ytl land min 1k shareholder then worth to go otherwise this is just wasting your time,wasting yr morning energy ....my offc next to it surely go but for those far away better think twice lo..tat area morning jam util u "koyak"lo...tat's why they changed place to avoid many ikan bilis cheap skate low class Apeks n Asam kacao like previous year Malu their familys face in JWmarroits..
Angielim9955yongch THNAKS yongch YA i AM VERY LAZY READ LETTER , BECAUSE i GOT 50 COUNTERS IN MY HAND , AND 1000 IS NOTHING ONLY 1450, SO I THINK ALL GOT AT LEAST 1000 UNITS HAHA YA YTL GIVE FREE VOUCHER 50 , MUCH MORE BETTER THAN BJC GIVE WHAT THE HELL BUY ONE FREE ONE VOUCHER , STUID BJC
yongchAngielim9955...hi..if got chance to meet will share more ..c u in AGM..
Angielim9955yongch , hi, I am not going , not free on that day