3 people like this.

4 comment(s). Last comment by kcchongnz 2014-01-06 18:13

inwest88

5,628 posts

Posted by inwest88 > 2013-11-24 12:16 | Report Abuse

# kc - a very well written and simple to understand article. A good read for those who want to dabble in warrants.

nskim0909

71 posts

Posted by nskim0909 > 2013-11-25 17:44 | Report Abuse

thanks kc for this simply yet understandable article...

kcchongnz

6,684 posts

Posted by kcchongnz > 2013-12-03 12:30 | Report Abuse

Can you see the power of leverage on call warrants of Tenaga?

Tenaga's share price went up from RM9.58 yesterday to 11.16 now, or 16.5%.

Let us just take one of its call warrants, C2 which went up from 58 sen to 83.5 sen now, or 44%, 2.7 times more.

kcchongnz

6,684 posts

Posted by kcchongnz > 2014-01-06 18:13 | Report Abuse

Can you appreciate the power of leverage in warrant investing now?

When the above post was written exactly 2 weeks ago, PJ Dev share price was RM1.28 and Wc was 35.5 sen. Now PJ Dev is 1.38, for a rise of 10 sen or 7.8%. PJDev Wc is 43.0 sen now and the increase in price is 7.5 sen. The percentage increase is however about 3 times more at 21.1%.

That is the power of leverage.

Hence if one is very bullish about a stock, investing in its warrants can be a better alternative.

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