Posted by BLee > 2024-07-29 09:09 | Report Abuse

“In my view, buying warrants like C53 are worse than gambling, or going to a Casino or buying lottery tickets.”

Very good write-up. I agreed with 99% of what's written; except..
‘- can't compare gambling with any type of investment instrument. In gambling, the duration is short; either you win all or lose all in one trade with various permutations. With warrants, either the Company free warrants or IB Call Warrant, the Term and Condition all spelt-out with The Duration, The Odds, The Issuer (who you bet with?), who is the Market Maker, and so on and so forth..as I read in their Term Sheet, the Market Maker will Buy the Company Share to ‘Normalize’ their trade so that All will win in a bull market. It is the reverse for a bear market.
‘- The buy and sell bids by Market Maker are available for trading. There is a chance to cut-loss or run-with-gain; unlike gambling..
I am Not advocating Call Warrant as I can't take the risk, and with my one time lost in Company’s Warrant, will sell at any price for any given Free warrant. As always, Happy Trading and TradeAtYourOwnRisk.

Posted by ahbah > 2024-07-29 11:16 | Report Abuse

Always think RHB is a high dividend stock.

Posted by BLee > 2024-07-29 12:00 | Report Abuse

"ahbah > Always think RHB is a high dividend stock."

Please understand the below statement of the article:
'Contrast owning the mother shares RHBBANK. Your odds of winning is so much better, for many people, maybe even better than EPF in a diversified portfolio of similar businesses.
When RHBBANK goes ex-div with 15 sen of 25 sen, you don't really lose anything permanently, but if you owned C53, you risk losing big time, maybe 100% wipe out.'

The IB CW issuer usually chooses Good Fundamental and/or Dividend Companies to attract buyers. The attraction of low CW prices of High Price Counters will ensure 'gamblers trapped'... If the 'punters' know the game well, the leverage will be very rewarding compared with buying mother shares; discounting the Dividend..