i'm enter at 26.5sen on last friday n sold at 31.5sen yesterday...last minute...i think..should wait until wb listing...the price will be more strong...
don't know..it's dependent on mother..as u said..the wb price maybe at 30sen..so..wa will not rise so much...whatever the mother rise it just up a little in wa..coz wa not follow the mother at all...but after wb listing...anything can happen..if wb listed...people will push more in wb than wa...
Reference price as at 19 Nov: Current Mother price: 0.335 sen Current WA price: 0.22 sen
"WA Profile" Issue Size: 118,756,997 shares Expiry Date: 03/03/2021 (7.5 years to go) Conversation Price: 0.32 sen Intrinsic Value: 0.015 sen (0.335 - 0.32) Premium: 0.205 sen (i.e. 0.22 - 0.015) Remarks: Out of money. E.g. cost to convert to mother share is 0.54 sen (i.e. 0.22 + 0.32) whereas can by mother share from market at 0.335 sen now (pay premium of 0.205 sen).
'WB Profile" Issue Size: 680,555,239 shares Expiry Date: 21/10/2018 (new 5 years) Conversation Price: 0.175 sen
What is WB fair market price on 21 Nov?
Price Assumption 1 (based on WA premium of 0.205 sen): 0.38 sen (i.e. 0.175 + 0.205) Remarks: 0.38 is higher than the current mother price of 0.335 sen, not logic/possible!
Price Assumption 2 (based on Intrinsic Value concept): 0.16 sen (i.e 0.335 - 0.175) Remarks: WB has lower conversation price of 0.175 sen than WA of 0.32 sen. Therefore, WB fair share price should be higher than WA.
Conclusion: (1) Based on the above assumptions, the fair market price for WB should be above WA price (0.22 sen) and below mother price (0.335 sen). (2) or WA is OVER PRICED!
Happy Investing Everyone! Rich Dad: Money don't grow on tree.
Smartinv - thanks for sharing. I am not too good on this. But by looking at Price Assumption 1, don't you think that someone will push the mother price up ? So that WB price will look reasonable.
Info for warrant holders [Source: Prospectus & Bursa Announcement] ==========================================================
WA vs. WB =========
Reference price as at 20 Nov closing: Current Mother price: 0.34 sen Current WA price: 0.25 sen
"WA Profile" Issue Size: 118,756,997 shares Expiry Date: 03/03/2021 (7.5 years to go) Conversation Price: 0.32 sen Intrinsic Value: 0.02 sen (0.34 - 0.32) Premium: 0.23 sen (i.e. 0.25 - 0.02) Remarks: Out of money. Over priced !!! E.g. cost to convert to mother share is 0.57 sen (i.e. 0.25 + 0.32) whereas can buy mother share from market at 0.34 sen now (pay premium of 0.23 sen).
'WB Profile" Issue Size: 680,555,239 shares Expiry Date: 21/10/2018 (new 5 years) Conversation Price: 0.175 sen
What is WB fair market price on 21 Nov? ================================
Price Assumption 1 (based on WA premium of 0.23 sen): 0.405 sen (i.e. 0.175 + 0.23) Remarks: 0.405 sen is higher than the current mother price of 0.34 sen, not logic/not possible!
Price Assumption 2 (based on Intrinsic Value concept): 0.165 sen (i.e 0.34 - 0.175) Remarks: WB has lower conversation price of 0.175 sen than WA conversation of 0.32 sen. Therefore, WB fair share price should be higher than current WA price. i.e. WB > 0.25 sen.
Conclusion: (a) Based on the above assumptions, the fair market price for WB should be above WA price (> 0.25 sen) and below mother price (< 0.34 sen). (b) or current WA is OVER PRICED !!! WA price face Pressure to come down on 21 Nov.
Happy Investing Everyone! Rich Dad: Money don't grow on tree.
WA conversation price is 32 sen. WB conversation price is 17.5 sen. Big conversation price difference of 14.5 sen!
The gap should be around 14.5 sen BUT the actual price difference between WA (23 sen @ 22 Nov) and WB (25 sen) is only 2 sen!!!
Conclusion: (1) WA has very limited upside. (2) WB has a lot of upside potential. (1) or (2) depend on the fluctuation of the Mother price and demand & supply of the warrants.
Happy Investing Everyone! Rich Dad: Money don't grow on tree.
Just keep for a new months and when the prices hit 20 sen, you will feel very smart. This company has yet to move out of PN17 and when it does, sentiments will change.
I did not realized that WA has a longer expiry period ie till March 2021. No wonder there are such interest in this warrant despite its higher exercise price of RM0.32. Also a good run today.
KUALA LUMPUR: Sumatec Resources Bhd plans to raise half the amount it needs to pay for two new assets worth US$250mil (RM794mil) it is proposing to buy in Kazakhstan via a rights issue and the rest through an issuance of shares.
Though it is a PN17 company, Sumatec wants to tap the capital markets for funds and expects the rights to be issued before the year is out.
All that is dependent on how fast it can enter into a sale and purchase agreement with the two asset owners, though Sumatec chief executive officer Chris Dalton told reporters yesterday that he expected a deal to be concluded before year’s end. The due diligence is under way.
Dalton also expects Sumatec to be out of the PN17 status next month.
Last week, Sumatec said it had entered into a framework agreement with Abu Talib Abdul Rahman and Dr Murat Safin to buy the entire equity interest in Borneo Energy Oil and Gas Ltd for US$250mil, which in turn has rights over Bazachi Neft LLP, which is an independent upstream oil and gas company involved in the exploration, production and trading of oil and natural gas. Sumatec is a service provider in the downstream sector of the oil and gas industry.
Buzachi currently has two 25-year subsoil use contracts, valid till November 2026, for the exploration and production of oil and gas in Karaturun Vostochnyi and Karaturun Morskoi fields (Buzachi fields).
He explained that the Buzachi fields, which were in shallow waters (one to two metres deep), were located about 277km northeast of Aktau city in the northern part of Mangistau region, Kazakhstan. There are 26 wells at the fields, five of which are currently in production and producing between 400 and 600 barrels of oil per day. Oil transportation is convenient as the fields are located just 180km away from the main Uzen-Atyrau-Samara oil pipeline.
Dalton said upon completion of the purchase of the two assets, Sumatec intended to ramp up production and in three years’ time he reckoned Sumatec, with all its other oil and gas assets, would be able to produce about 3,500 barrels of oil per day.
Apart from holding a stake in Borneo Energy, Abu Talib also owns 0.6% equity in Sumatec, and is a long-time associate of Tan Sri Halim Saad, who has 23.96% in Sumatec.
Dalton expected a contribution of US$1.62mil to Sumatec’s profit in the fourth quarter of this year from the two assets, and the figure will be substantial next year.
Beyond the US$250mil outlay, Dalton said the company also needed to spend about RM150mil in capital expenditure for additional facilities at the fields which would be raised via issuance of bonds.
Sumatec also has the rights to the oil and gas field in Rakushechnoye, Kazakhstan, which has yielded a 14.5% increase in proven oil reserves to 129 million barrels.
I have increased my shareholding of WA the past few days. If you observes, amongst Mother, WB and WA, WA will always have the best increase in quantum and % vise. Further, even though WA has higher exercise price, it also enjoy a longer maturity period till 2021. So if TSHS's plan till 2018 works, WA will stand to benefit more.
warrant B shld b more aggressive since thier expiry is nearer but this stk is over goreng liao....not yet finish , warrant price is 5 cts away from mum.....scary .....
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Posted by Stone Huat > 2013-11-14 16:04 | Report Abuse
useless warrant