Only fools believe in conspiracy. I know an old fart from Singapore always label me as “syndicate” who tries to push down his recommendations which makes no sense to me.
This may be somewhat true, however, do note that often banks do not just issue a warrant like that. They usually already hold the stock, and use the warrant sales as a hedge to limit losses, which also limits the upside." The term sheet clearly spelt out the condition of hedging, IBs will control the selling and buying as market maker, all professionally done controlling CW prices..
interesting that u seem to have left out the stock broking firms inhouse investment teams that trade for their own a/c or for clients, banks investment funds,as well as private funds that are legitimate. These have million to buy n sell, do they trade/invest the same way as you n i ?
@More2It Why would they trade differently? And how differently would they trade? At the end of the day, they want returns.
I do concede that they may try to trade the trend etc, but not as this so called operator.
@BLee Yeap. However, i doubt they will be so foolish as to issue warrants with the assumption that they can control prices. Hengyuan now is worth RM4.4bil. And its not the only warrant in town. Unless the IB is Berkshire Hathaway and for some reason want to donate alot of money to public.
Sentiment. Oil prices go up, SUMATEC is an oil driller. People start to buy, then people see other people buy, they also go and buy. Then everyone see everyone buy, we get greedy, go and chase it high.
Then the people who hold the share originally sell at first, but suddenly, they see it keep going up, they greedy, dont want to sell any more. Or even go buy back more at a higher price!
The only question is if the gains that be kept. Which now comes down to fundamentals.
OrlandoOIL Tat weird merlin guy didn't answered my question on hw sumatac wil solve its debt problems thn next thing d price flew by 50% knn
If no got operators hw sumatac flew like tat ? Can explain? 21/01/2018 08:18
@Jon Choivo, IBs do sell new CW at base RM0.15 to RM0.20 (clean profit), CW very marketable on bull market. Once issuing quota exhausted, IBs will hedge (buy or sell) by expert so that to maximise profit. More IBs issuing same counter with different expiring date will complicate matters. Therefore, CWs are very speculative and manipulated..just my shallow understanding of CW.
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Posted by John《 HIBISCUS 》 TP RM2 > 2018-01-21 02:22 | Report Abuse
Agreed with you especially about bone bone. Bone in dilemma now