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Artroniq Bhd's Warrants - An Undervalued Asset That Demands Investor Attention

DouglasLiu
Publish date: Thu, 27 Jul 2023, 03:28 PM



The listing (IPO) of Artroniq Bhd's warrants can only be described as an unequivocal success, with early investors relishing the substantial profits generated by this Internet of Things (IoT) innovator.

But the question on many investors' minds now is whether this is an opportune time to capitalize on more Artroniq warrants.

Understanding the mechanics of "warrants" is a crucial starting point.

In essence, warrants serve as powerful instruments that allow investors to amplify their potential gains by capitalizing on a company's positive momentum, thanks to their inherent leverage or gearing ratio.

Artroniq Bhd, in particular, is in the midst of a transformative journey towards becoming an IoT powerhouse.

This shift is complemented by exciting ventures on the horizon, including the upcoming launch of an electric vehicle (EV) project known as the Reevo bike, and a deep dive into blockchain services facilitated by a contract with Panda Commercial Bank.

The successful realization of these ambitious projects is set to provide a significant boost to Artroniq Bhd's share price, and by extension, their warrants.

“Artroniq Bhd's warrants are currently trading at RM0.180, with a conversion price of RM0.600. This represents a relatively small premium of RM0.025 or 3.31% against its share price of RM0.755.”

It's also important to note that these warrants have a maturity period of three years.

Typically, in such scenarios, warrants tend to attract a premium of 20% to 30%, particularly when associated with a company with considerable growth potential like Artroniq Bhd.

So, should you be purchasing Artroniq's warrants now?

The answer, in no uncertain terms, is a resounding yes. With a steep discount in the time value of money (reflected in the aforementioned premium of 20% to 30%), these warrants offer an attractive investment opportunity.

Market forces have yet to adjust the share price to accommodate this premium, meaning this is a golden opportunity for shrewd investors.

The time to act is now, as Artroniq Bhd's undervalued warrants present an attractive entry point for those seeking to leverage the company's promising future.

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