Posted by GGmalaysia > 2015-07-11 14:27 | Report Abuse

my instinct tells me that it will be priced around 20-30 sen. i could be wrong

Posted by Johnnys > 2015-07-11 17:19 | Report Abuse

should be more than 0.50

Posted by winston1 > 2015-07-12 01:12 | Report Abuse

50 to 60

Posted by HITnRUN > 2015-07-12 08:41 | Report Abuse

who determine the price of warrant listing? Bursa or the Homeriz company?

Posted by kcchongnz > 2015-07-12 10:46 | Report Abuse

Posted by HITnRUN > Jul 12, 2015 08:41 AM | Report Abuse

who determine the price of warrant listing? Bursa or the Homeriz company?


Who determines the share prices traded in Bursa?

Posted by joerakmo > 2015-07-12 23:15 | Report Abuse

kcchong:

For Homeritz the calculation should be as such:
NS = ex homeritz share

1.53 x 4000= 4000NS + 2000NS(bonus share) + 1000W

1Warrant + 0.92 = 1NS

Hence:

(1.53 X 4000) + 920 = 7000NS

1NS= 1.00571 which is rounded down to 1.00

The reference price on warrant listing date is based on mother share price on the immediate date prior to listing less strike.This is an issue even IF the warrant was priced as a right.This is unlike Call warrants.Some have written in to Bursa but nothing has been done!

Posted by valuelurker > 2015-07-13 09:58 | Report Abuse

Where did you get the information for the exercise price at RM0.92

Posted by kcchongnz > 2015-07-13 18:23 | Report Abuse

joerakmo kcchong:
For Homeritz the calculation should be as such:
NS = ex homeritz share
1.53 x 4000= 4000NS + 2000NS(bonus share) + 1000W
1Warrant + 0.92 = 1NS
Hence:
(1.53 X 4000) + 920 = 7000NS
1NS= 1.00571 which is rounded down to 1.00

joerakmo,
Your computation of the adjusted price of Homeritz is the same as the article. Your explanation is clearer rather than relying on the generic formula given by my article. Thanks for your input.

Bear in mind the way you compute is based on the conversion of the warrants with an intrinsic value but ignore the time value of the warrants.

The article also estimated option value of Homeritz warrant based on the underlying share price at 97 sen. Now Homeritz closed at RM1.03 today. The pertinent question is what is the estimated price of its warrant?

Posted by joerakmo > 2015-07-13 23:00 | Report Abuse

kcchongnz:

'True intrinsic value" of warrant is dependent on 'true intrinsic value' of Homeritz mother share using whatever valuation methods you use.

Current value of warrant is Homeritz share price less strike.

Premium is all time value.

You have covered most of it but too lengthy to elaborate here.

Actual 'in the money' to me means current price of warrant plus strike is less than current mother share price and NOT just mother share price above strike.

Reference price of warrant on listing is Homeritz share price less strike;rest up to market forces unless you have a very clear objective and forward intrinsic value of the mother share.

Basic premise of cum and ex calculation is that over the 16 hours between close and open the market capitalization does not change.

This is my own practical approach to it.Hope it helps.

Posted by kcchongnz > 2015-07-14 05:38 | Report Abuse

Posted by joerakmo > Jul 13, 2015 11:00 PM | Report Abuse
Actual 'in the money' to me means current price of warrant plus strike is less than current mother share price and NOT just mother share price above strike.
Reference price of warrant on listing is Homeritz share price less strike;rest up to market forces unless you have a very clear objective and forward intrinsic value of the mother share.
Basic premise of cum and ex calculation is that over the 16 hours between close and open the market capitalization does not change.
This is my own practical approach to it.Hope it helps.


You do have your rational approach in the calculations of cum and ex calculations and I think that is what Bursa does. But I have a couple of points.

1) Theoretically, "current price of warrant plus strike less than current mother share price" is the "premium". whether a warrant is "in-the-money" or not is if the underlying share price (S)is more than the warrant conversion price (K), i.e. S>K.

2) Your reference price of the warrant when listed is S-K which I think is right. But Homeritz warrant will be bidden up where above the value of S-K because that is only the "intrinsic value" of the warrant. There is a much higher "time value" of a 5-year expiry warrant.

Posted by minghong > 2015-07-31 09:54 | Report Abuse

any sifu here mind to tell me the reference price for homeriz-wa when listed that day 15/7/15. thanks much.. (reference price not closing price)

Posted by kcchongnz > 2015-08-01 05:10 | Report Abuse

Posted by minghong > Jul 31, 2015 09:54 AM | Report Abuse
any sifu here mind to tell me the reference price for homeriz-wa when listed that day 15/7/15. thanks much.. (reference price not closing price)

"Posted by joerakmo > Jul 13, 2015 11:00 PM | Report Abuse
Reference price of warrant on listing is Homeritz share price less strike"

As the adjusted price was around RM1.01, the intrinsic value is RM1.01-0.92 = 9 sen.

That was why I said the reference price they use, which is the intrinsic value of the warrant is not a right reference, as it does not include any time value. The time value as you can see from the present price of Homeritz at 58 sen, is a few times of its intrinsic value.

Posted by minghong > 2015-08-02 20:36 | Report Abuse

kcc@ i thought the listing (reference )price for homeriz-wa was 1.05 (14/7/15 mother price)- 0.92= 0.13? i forgot the reference price that day. im doing some research so need to find out. im talking the actual reference price of wa on 15/7/15 not any correct calculation or argument of price that should be.

Posted by minghong > 2015-08-02 20:38 | Report Abuse

warrant listing on 15/7/15, so by right should use 14/7/15 closing price of mother to deduct 0.92 to get reference price of WA on fist day lisitng right? thks

Posted by kcchongnz > 2015-08-09 07:56 | Report Abuse

Hi KC,
On your advice , I also bought Homerizt . There is an announcement that they will issue free bonus & warrant but did not state when. So it's indefinite. If the price go up 50% (RM1.22 then), should I sell or wait for the free bonus & warrant?
Lily


K C Chong <ckc14training2@gmail.com>
May 6
Lily,
Good on you for invested in Homeritz. The corporate exercise for Homeritz is quite straightforward and should complete in about three months, I think. I think it is good to go through the whole exercise.
If it goes up 50%, I think its price would have exceeded its value.



The share price of Homeritz ran up to RM1.53 just before the ex-date of the corporate exercise. As at 7th August 2015, Homeritz and its warrant closed at 99 sen and 47.5 sen respectively. Those who still hold the shares would still gain about 5% since just before the ex-date, or 31% when it was RM1.22.

For those who have sold near their peaks at RM1.17 and 65 sen respectively would have gained another 25% from just before the ex-date, of 56% from RM1.22.