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3 comment(s). Last comment by kl foong 2012-11-01 20:51
Posted by stock5678 > 2012-11-01 14:19 | Report Abuse
Tenage doesn't has tenage. ya, forget, tenage is in my "never pay a cent to buy" list too
Posted by kl foong > 2012-11-01 20:51 | Report Abuse
Tenaga is for long term. If you have no patience and no holding power. Stay away.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Posted by kcchongnz > 2012-11-01 14:10 | Report Abuse
Say I am bullish about Tenaga and want to make RM12,000 from Tenaga. I would have to take out RM80,000 to buy 11430 shares of Tenaga at the present price of RM7.00. When Tenaga rises to Kenanga's target price of RM8.05, I will make the amount I want [(8.05-7.00)*11430=12,000]. However I am not too brave to come out with RM80,000. What if Kenanga is wrong in its analysis? What if Tenaga, instead of rising RM1.05, it drops by RM2.00? I would lose RM23,000! That is too much for me to risk. Now instead of buying 11430 shares of Tenaga, I come out with RM9000 to buy 100,000 shares of Tenaga call warrant CW at 9 sen. If Tenaga really rises up to RM8.05 before its expiry on 29/3/2013, I make the required RM12,000. If Tenaga rises more than RM8.05, I would make much more. If I am unlucky and Tenaga price doesn't go up, the most I lose is my capital of RM9000 only. Tenaga CW with an exercise price of RM7.00, exercise ratio of 5, has 5 more months to expire. It has a good gearing of 15.6 or an effective leverage of 9 is a good punt. Below is the payoff of CW at various prices of Tenaga.
Tenaga 7.00 7.20 7.48 7.80 8.05 9.00
Gain 0% 3% 7% 11% 15% 29%
CW gain -100% -56% 7% 78% 133% 344%