jeannieworst part its sinking down day by day, hopefully they give us the confidence again...I used to like this counter...its scaring me atm...
SaturnRisesUpon EGM next week 28 Nov, by which the proposal of PDS, warrant and bonus should be approve by shareholders, it should be viewed as money in pocket for both investors and EnO & staff while awaiting the last piece of approval ie the DEIA final guideline. This guideline will be used in the tender and the award of the tender shall be weighted on it. This approval is part of the stringent accountability taken up by the penang Goverment to protect the shoreline and Eco enviroment that may arise due to the reclaim activity of coming stp2. The penang govt has earlier approved the project however subjected to this coming guideline of Deia being followed stringently. So view this as good planning by EnO, if all the money is secured prior to the funding required for stp2. The tendering should be soon and award should b by Jan or Feb 2015. I understand they want to fix the exercise price of warrant at rm2.90. This makes perfect sense becoz the recent buyback of 9.94% block fr Sime was at rm2.90 also. This mean everything will be weighted on the TEBC or VWAP price to calculate the premium since conversion is fixed. The premium must ensure the price looks attractive. To be attractive, the premium % must be as small as positive if in +ve region while premium in negative will raise the attractiveness of the warrant.
SaturnRisesIn most cases, the TEBP/VWAP which is the base of most calculation prior to the exercise is normally lower than the actual ex bonus price itself. Example if the TEBP(theoretical ex bonus price) is 2.854, this price is the indication of ex bonus however the real situation will depend on the run up to the day before the bonus ex date. If the run up is 3.5 on eve of bonus ex, the bonus ex day will be 3.18 base on 1 for 10. Note this is just an example as no one knows what the run up price will be. If the TEBP is approx what that have been slated, base of 1 for 5 warrant it should be around 47.5cents. Do your own math and find the range base on the example I have given. Once you got that range, only then put in you bets as all of us bought at different price and have diff exposure.
Fatso8Thank you. My calculation is almost there also but my price after bonus ex at rm3.02 (technical calculation) but I put in a lower warrant price much below the 48cents boundary due to the 1:5. I put in 20+ cents region which is almost half of 48cents. I have only 1 question though,can the VWAP price be taken up to Sept 4 as coverage by Thestar business if the EGM approval is on 28Nov?
SaturnRisesAs I mention, I do not know what is the run up price before ex bonus however most cases the ex bonus is higher than the TEBP. Your 3.02 is higher than TEBP. The example of 3.5 is only illustration and we never know what will happen on run up. Suffice to say it will be higher than TEBP for now. As for the other one on VWAP avg, it is possible the example given by the business coverage of 2.854 up to Sept 4 can be used because it's stated in most practices that VWAP price can be capture before ex date but I doubt you can use logically results longer than one quarter before the approval as fundamentally results are reported quarterly.
SaturnRisesI suggest Eric Chan to reiterate the fixed 2.90 exercise price for warrant again and get the whole news flowing and not leave too long.
tan5995Good news also not use, still down ! Ha ha ha !
SaturnRisesWe will need to see if it's TEAP or TEBP as PDS is not clearly stated yet!
SaturnReturnsWe have seen recently how some so call SIFU making and leaving ordious mark of their legacy. These ppl have no morals, lack ability except self selling. They are stuck at that level and require additional tuition fee to subsidize their trading game. Has it come to that level? How else do you explain integrity when a person threatens to leave a forum only to come back time and time again. Do these ppl not feel embarrassed? The answer as many have describe him as greedy, is not an extreme statement. Even coming back time and time again, he has managed to give an excuse.... Even failure in his stock pick, he has found an excuse And the reasons go on n on Why? Simple, these ppl leave in a denial world where lost is computed as holding cost while gain is seen as opportunity to market. I hv seen in my experience this type of ppl who don't serve the society for what is right but their own insatiable appetite for their onn consumption. Still think I m far fetch? Watch him defend himself tooth n nail as he so called reputation however he is not able to directly defend himself and depend on hench man to sell him. On top of that, his only backup statement is all are the same person w new Id. I'm here because my id is as old as dinarsour here and I wish to refute that. This is what that is happening to malaysia when the BN Govt treat all complain as the same person ie the opposition n they continue with the ruckus. OTB is no different, this is called divide n conquer as old fart are normally accustom to.