Basing on the Technical Price Charts the counter presently is very bearish.The price and momentum of the stock will always moved up and down.As investors,if one follows the price chars will give some useful guidance or pointer when to sell,buy or collect more.Or totally avoid the counter altogether:-(((
1.The sctochastic price show downturn in price; 2.MACD line is hovering below the Signal line- weakness for any price uptick for this counter; 3.The RSI show downtrend in this counter is still intact.
All these charts were not supportive of any sudden price reversal which is presently downwards.
Just for sharing.I stand to be corrected.Cheers:-)))
FORCE what price you bought..I remember on 16 Jan you mentioned y haven't bought when MBSB price below 1.10...don't missed the boat..buy & keep for long term . Happy trading
MORE ISSUANCE OF CALL WARRANTS. ===============================
IS THIS NEGATIVE NEWS ? . SOME SAID THAT THE IMPLICATION IS NEGATIVE FOR THE MOTHER SHARE PRICE. BCOS IT IS IN THE SELF INTEREST OF CALL WARRANT ISSUERS TO WISH FOR THE MOTHER SHARE PRICE TO GO DOWN SO THAT THEY CAN MAKE MONEY FROM OR AT LEAST DONT LOSE MONEY BASED ON THEIR EXERCISE FORMULA. IT SEEMS THERE WILL BE DOWNWARD PRESSURES ON THE MOTHER SHARE PRICE AS THE EXPIRY DATE OF THE CW APPROACHES.
SOME VALID OBSERVATIONS THERE. HAD ALSO SEEN SOME OTHER MOTHER SHARES SUFFERING SUCH SITUATIONS .
darren: On another flip of the coin, CW actually diluted the buying interest of the mother share. Without CW, market players has no choice but to straight away participate in mother share to earn a profit for its movement but with CW short term buyers will take the opportunity to make side bet on mother share movement with CW.
For hedging example, Investment bank issue MBSB warrant at RM1.1 underlying price. Investor go to buy their warrant.
Scenario 1: MBSB raise, investor and investment bank together earn. (Investor hold call warrant, investment bank hold underlying)
Scenario 2: MBSB drop, investor loss more and investment bank loss less. Due to warrant got expired date, so call warrant price will reduce and investor suffer loss. The investment bank earn from the losses from investor. So it call hedging.
Investment banks issue call warrants to earn income. In order to succeed, those warrants must expire out of the money. If not, they have to vomit out what they have eaten. I agree with darren "THE INVESTMENT BANK EARNS FROM THE LOSSES OF THE CW HOLDERS" U can observe, when those warrants are near expiry, the mother shares would see huge amt on the sell side to make the warrants out of the money.
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....
Kkevin2625
256 posts
Posted by Kkevin2625 > 2017-02-27 20:26 | Report Abuse
confirm success liao? later boom again T.T