Talk & Talk
MMAG’s Warrant (0034WB) still worth buying at this stage?
MMAG-WB:
Exercise ratio = 1:1;
Exercise value = RM0.20;
Current share price = RM0.56
The price required to convert to the stock
= ( warrant price ✘ ratio ) + Exercise value
= ( 0.24✘1) + 0.20
= 0.44
The price for the warrant to be converted into shares is RM0.44, but according to the 24/3/21, 11am mother stock price of RM0.56, there is a premium of -RM 0.12, which means that the price of the warrant to be converted into shares is cheaper than buying the shares directly in the market.
How to calculate premium%?
Formula = [(warrant price✘ratio) + Exercise value – Shares price ] / Shares price
Premium % = [(0.24✘1) + 0.2 - 0.56] / 0.56 = -21.43%
In other words, it is 21.43% cheaper to convert into shares with warrant than buying the shares directly in the market.
Conclusion:
MMAG-WB --- undervalue and still worth buying at this stage!
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