Posted by NickelLee > 2024-07-09 08:30 | Report Abuse

Maximizing Performance with Public Bank Call Warrants

For investors seeking enhanced performance from their Public Bank Bhd shares, call warrants offer a compelling alternative. In a bullish market, conservative counters like Public Bank may exhibit muted performance. By leveraging call warrants, investors can amplify their potential returns.


Why Choose Public Bank?
Public Bank is a well-managed institution with a market capitalization of RM78.4 billion, making it the third-largest on Bursa Malaysia. It is a staple for benchmark tracking and large institutional funds. Valuation-wise, it trades at 12x PER (TTM) and 1.4x P/BV with a dividend yield of 4.7%. Despite these strengths, Public Bank's share price has underperformed its peers and the broader market. For those bullish on the Malaysian stock market but wanting to minimize risk, Public Bank represents a safe, value-oriented investment.

The Power of Leveraged Warrants
Having selected Public Bank, we now consider the benefits of its call warrants. Call warrants allow for a leveraged exposure to the underlying stock. The warrant parity price calculation illustrates this leverage:

Assuming Public Bank's share price aligns with KLCI movements and reaches RM4.67, the Warrant Parity Price would be:

https://klse.i3investor.com/web/blog/detail/FastCarWarrantSeries/2024-07-08-story-h-157765873-Public_Bank_Call_Warrants


A 15.6% increase in the mother share price can translate to a 900% rise in the warrant price, showcasing the potential for significant gains. However, this leverage also introduces greater risk, akin to driving a fast car—it can lead to rapid gains or substantial losses due to warrant expiry or declining share prices.



Recommended Warrants

Based on our proprietary warrant picking matrix, we recommend:

PBBANK-C1B (12951B), Expiry: 30-08-2024
PBBANK-C1D (12951D), Expiry: 24-01-2025


In conclusion, for those looking to enhance their investment returns in Public Bank, call warrants provide a high-risk, high-reward opportunity, ideal for investors with a robust risk appetite and a bullish outlook on the Malaysian stock market.

Posted by KylieTan > 2024-07-09 09:28 | Report Abuse

Nice sharing, NickelLee 👍Remember warrants are for short-term play and they have theta effect

Posted by jluck > 2024-07-09 14:54 | Report Abuse

Call warrant very high risk. I think no demand that's why...

Posted by 1288Go > 2024-07-09 15:33 | Report Abuse

Yes,Jluvk call warrants very dangerous unless it's a super bull run. Careful call warrants. Only IB has reasons to ask you to gamble call warrants.
Pbb can hold long time. Call warrants expire and get zero at end of day !!

Posted by EDwarrior > 2024-07-09 15:39 | Report Abuse

Buy pbb share and hold.

Posted by EDwarrior > 2024-07-09 15:39 | Report Abuse

Target price RM 5

Posted by BlackDiamond > 2024-07-09 16:37 | Report Abuse

PBB will touch 4.50 just before the announcement of its dividend in Sept! Still cheap! Buy and keep!

Posted by zzprozaz > 2024-07-10 08:12 |

Post removed.Why?

Posted by speakup > 2024-07-10 08:24 | Report Abuse

40 minit more to CASINO DE BURSA open! ARE YOU READY TO GAMBLE!
Bet small win small
Bet Big win Big
INI KALILAHHHHHH!

Posted by EDwarrior > 2024-07-10 16:56 | Report Abuse

Below 4.2 can buy. Keep buying

Posted by stkoay > 2024-07-11 11:58 | Report Abuse

"Foreign investors are taking baby steps and putting money in," he said, although the foreign ownership level remains at only 19%, not yet peaking at the 35% to 40% levels.

Rajiv said JPMorgan’s upgrade reflects a combination of economic growth, effective policy implementation and improving governance, making Malaysia a more promising investment destination.

Posted by EDwarrior > 2024-07-11 18:38 | Report Abuse

Public bank vietnam has completed the acquisition.

Posted by Ninja _07 > 2024-07-12 17:03 | Report Abuse

Other bank counters moving but PBB going down. This EPF also disposed off more than RM200 MIL...!!!

Posted by KylieTan > 2024-07-15 18:17 | Report Abuse

Buy more if it's below 4.1, EDwarrior 😊

Posted by Hachi Hachi > 2024-07-16 15:44 | Report Abuse

'caterpillar' movements!
Bosan.

Posted by cucubud > 2024-07-17 10:03 | Report Abuse

This morning starts climbing the stairs.

Posted by kl_guy > 2024-07-17 11:58 | Report Abuse

look like someone is shorting PBB at rm4.18 .

Posted by NotGenZ > 2024-07-17 12:11 | Report Abuse

this darling stock has become an old hag!

Posted by Hachi Hachi > 2024-07-18 09:16 | Report Abuse

'caterpillar ' is crawling up the stair.

Posted by M55555 > 2024-07-18 09:58 | Report Abuse

So early already start crawling . I am think she will be sleeping till next month

Posted by kl_guy > 2024-07-18 12:56 | Report Abuse

look like IDSS is selling on rm4.22 . if today close above rm4.22 . shorties loss again

Posted by eagleye > 2024-07-18 13:14 | Report Abuse

What slow coach, low of 4.
Fast coach now 4.23.
5 % uP in a few days.

Posted by alenac > 2024-07-18 15:16 | Report Abuse

Have faith, that banks counter will move when economic growth is proven robust with support from consistent foreign funds inflow.

Posted by stkoay > 2024-07-18 17:04 | Report Abuse

Congratulation for outperforming other banks today.

Posted by BlackDiamond > 2024-07-18 17:04 | Report Abuse

Agree with alenac, at the moment it’s a global slow and this financially strong counter will move up eventually. Also don’t forget its dividend coming in September.

Posted by BlackDiamond > 2024-07-18 17:06 | Report Abuse

4.25 Closing! It will be 4.50 by September!

Posted by Hachi Hachi > 2024-07-18 17:22 | Report Abuse

foreign fund coming..

Posted by BlackDiamond > 2024-07-18 19:19 | Report Abuse

Congratulations to those loyal ones who purchased at 4 and even 3.9! Your faith and confidence in PBB has paid you. Now just watch it going up and also enjoy its dividend coming up soon. 😄😄😄

Posted by BlackDiamond > 2024-07-18 19:25 | Report Abuse

I can still say that PBB is the second best after MBB in Malaysia. It’s conservative and that is why it is as strong as a rock in terms of its wealth. In short you can never go wrong if you’re with PBB. At least you can sleep well as your investments are safe!👍👍👍

Posted by DividendGuy67 > 2024-07-18 20:02 | Report Abuse

I followed my plan as I blogged on 24 May as well as posted comments much earlier.
My plan then, and is still now is the lower PBBANK goes, the more I added, and the lower it goes the more I added again. Now, every single buy that I did in PBBANK is in green. And it will pay me growing dividends in years to come. What a wonderful stock!

https://klse.i3investor.com/web/blog/detail/DividendGuy67/2024-05-24-story-h-160805766-PBBANK_I_added_at_4_18

Posted by DividendGuy67 > 2024-07-18 20:05 | Report Abuse

For the record, in this recent fall to briefly below RM4, it didn't go to 3.9. The lowest was RM3.98. It's a pity my queue to add more at 3.98 was not filled, probably because too many queues ahead of me at 3.98.

Posted by DividendGuy67 > 2024-07-18 20:07 | Report Abuse

Now, if price breaks above 4.29, then, the recent fall below RM4 was a bear trap, i.e. above 4.29, this is a bullish setup suggesting higher prices. Bears will now press PBBANK very, very hard to make sure it doesn't go up above 4.29 because if it does, they've lost the battle.

Posted by DividendGuy67 > 2024-07-18 20:09 | Report Abuse

But price gains is irrelevant to me. My primary goal is to own as much as I can at as cheap a price in order to build a future passive income stream to prepare for my future retirement where the income stream will keep growing each year, and if possible, as a legacy to pass on to my children one day. The only time I will consider selling is when it is in its "euphoric zone", i.e. really really new highs near the peak of the bull market mania (which is a long way away).

Posted by BlackDiamond > 2024-07-19 13:11 | Report Abuse

Mark my words that is in September PBB will about 4.50 and than after the cut off date for dividend it may than adjust itself. So there is still a lot upside movement remaining. There will no risk involved if you purchase at this price. Good Luck Smart Guys!👍👍👍

Posted by Willtolive > 2024-07-19 15:24 | Report Abuse

target 5

Posted by BlackDiamond > 2024-07-20 09:30 | Report Abuse

Yes, by year end 5 is possible if our economy keeps stabilising! But, if there is bull run, which has been predicted to be coming soon than it will fly. That will be the time to sell!

Posted by BlackDiamond > 2024-07-20 09:36 | Report Abuse

Don’t forget that PBB is currently one of the biggest banks in SEA, with over 91 Billion in assets and 18 Billion in market capitalisation in US dollars.

Posted by BlackDiamond > 2024-07-20 09:36 | Report Abuse

It’s incredibly RICH!

Posted by KylieTan > 2024-07-20 15:50 | Report Abuse

Congrats to those who hentam it when it was at RM4 there 😊

Posted by DividendGuy67 > 2024-07-21 04:04 | Report Abuse

@BlackDiamond, will mark your words 4.50 in September 😀.
However, chart wise, we may not be completely out of the woods yet. There's 2 opening gaps on 9 Jul and 18 Jul and maybe 50/50 chance price might want to retest 4.06 say sometime this year? If I am looking to add more PBBANK, I will just key in a GTC order to buy at 4.07 and just check once a month to see if it needs to be refreshed. With luck, that 50% chance of getting filled turns out to be filled. Good luck!

Posted by DividendGuy67 > 2024-07-21 04:13 | Report Abuse

Noting September is usually a dividend month. I'll be happy with the 9 sen, like last year.
Sorry, but personally, my base case is not to expect 4.50 this year (unless KLCI breaks out strongly), due to the downtrend line resistance currently lower than 4.50. My base case is still to expect PBBANK to stay in consolidation model this year. As I'm not here for its price gain, this is not so important to me.

Posted by DividendGuy67 > 2024-07-21 05:12 | Report Abuse

The weekly and daily candle charts here - it explains better.

https://klse.i3investor.com/web/blog/detail/DividendGuy67/2024-07-21-story-h-156158217-PBBANK_Updated_Chart

Posted by Willtolive > 2024-07-21 10:05 | Report Abuse

DividendGuy67, I don't know what you are rambling. PBB is a laggard, it's worth a lot more than 7.

Posted by DividendGuy67 > 2024-07-21 11:58 | Report Abuse

Willtolive, it's been a laggard, odds are still a laggard by September ex-div date, which is good for those wanting to accumulate, because this is a wonderful business. I expect PBBANK to provide me with rising passive income dividends in the future.

Posted by BlackDiamond > 2024-07-22 10:13 | Report Abuse

Mr Dividend you may not be wrong in your thoughts, l have to say. Please note that the management finally decides on dividend pay out and they very well that we have been pretty hurt with its daily share movement. So, in response lm sure they will WILL a handsome returns to bring a smile to the pathetic investors.😩😩😩😭😭😭

Posted by cucubud > 2024-07-22 10:57 | Report Abuse

@DividendGuy67, read you blog on PBB and saw the weekly chart and daily chart. Which is a more preferred chart to use? Adj or non Adj chart?

Posted by stkoay > 2024-07-22 19:42 | Report Abuse

The top three net buys by foreign investors were Malayan Banking Bhd, CIMB Group Holdings Bhd and Tenaga Nasional Bhd (TNB), while YTL Power International Bhd, RHB Bank Bhd and Hong Leong Bank Bhd were among the top three net sells by foreign investors.

Local institutional investors focused their net selling in the financial services and construction sectors, with Maybank, CIMB and TNB among their top sells.

https://www.nst.com.my/business/corporate/2024/07/1080092/bursa-hits-three-year-high-foreign-investors-return

Posted by KylieTan > 2024-07-25 08:45 | Report Abuse

Look forward Public bank to declare dividend next month 🙂

Posted by kl_guy > 2024-07-25 10:10 | Report Abuse

time to look at old man counter. with US market crashing better buy strong company. u sleep soundly at night.

Posted by stkoay > 2024-07-25 12:41 | Report Abuse

All banks are now solid.
Even DJ dropped 500, there are no panicked selling.....