MRCB-C21 
Exercise Price : RM 1.22
Conversion Ratio : 1.31 : 1
Premium : (27.44%)
Maturity Date : 30/04/2018 (154 Days)
 

TARGET : 5-10sens

MRCB has been facing severe selling pressure for the past 1 month. 
Investors should take a look at this warrant as a great leverage tool if it goes up.
Catalysts for MRCB include the call for Election, Contract Wins from HSR KL-SG project and a rebound play from its current oversold conditions. Orderbooks for MRCB remains attractive.
This warrant also has a long maturity date of 154 days. 

Other attractive MRCB warrants include MRCB-C25 and MRCB-WB. 
As for MRCB-C25, please refer to Macquarie's Live matrix here.
 

GAMUDA-C39

Exercise Price : RM 5.35
Conversion Ratio : 3:1
Premium : (16.24%)
Maturity Date : 31/05/2018 (185 Days)


TARGET : 6-8 Sens

Fantastic Premium and Good conversion Ratio for this warrant.
Long Maturity date as well. Gamuda looks rather oversold at this time. Aggresive traders should pair this to the movement of this warrant to the mother share price every 3 bids. (Theoritically). 

DIGI-C21

Exercise Price : RM 5.00
Conversion Ratio : 1.5
Premium : (14.57%)
Maturity Date : 31/07/2018 (246 Days)


TARGET : Pending Price Action on Monday

We are still looking at this one. If Digi continues its selldown on Monday, Looking at 2-3 sens to Average down for it to rebound.




The purpose of this article 

The market is so bad already. Investors should not waste a single sen from buying into warrants which are not priced competitively by investment banks. There are certain issuers which will block the price of the structured warrants. For example, eventhough the mother share price is going up, the issuer will place the block of warrants at the sell bid and retail investors end up losing money as the warant does not move a single bid ! They still would profit from the sale of the warrants as the warrants would expire out of the money.  However, Greatwarrants strongly disagree with this. Why bother buying into uncompetitively priced matrixes of warrants?


The purpose of featuring Selective Warrants is so that retailers do not waste money buying into other untraded warrants. It is more for traders who "already has the intention to trade a warrants for the stocks mentioned".

I feel that retailers should trade only 1 or 2 out of the 10 warrants issued by investment banks. Hence, only a selective few warrants will be featured here. Hopefully, someday in future, more investment banks will price their structured warrants more competitively (In terms of %gains). This is because if nobody trades their warrants, Banks would definitely do something about it to attract more retail investors. Take America for an example, Most of their options have a conversion ratio of 1:1 despite the high price on stocks such as Boeing and Apple. Hence, in the States, Options can go up 10-20x as their options are priced very competitively, making the market more attractive for investors. Warrants in Malaysia should be traded more competitively. 

So far, MACQUARIE, CIMB, and RHB has been doing a great job. Take PETDAG-CS, SPSETIA- C2 and TENAGA-C39 for example. It goes up and down, fair and square in accordance to the price of the mother share. If it goes down it is okay, No problem. Traders should be aware of the risks when trading warrants as warrants can expire worthless. 

But when the stock goes up, JUST MAKE SURE YOUR WARRANT GOES UP FOR FAIR PLAY !!!

Tq,
Sincerely,
Greatwarrants.


Disclaimer: