A couple of months back the mother shares moved from RM1.87 to RM2.35 within 3 days. It then dropped to RM2.15 before the syndicate pushed it to RM3.04, all within 7- 10 days. The syndicate is strong enough to move the counter. During that period of abt 4 weeks, in total, JPM was no where to be seen so the shares were not shorted. From there one can easily tell that to bring it from the current price of below RM2.00 to RM2.30 is chicken feed for the syndicate.
When the syndicate wants to buy back the mother shares at low prices they will leave it to JPM to do the dirty job of bashing the prices down.
So if you are not caught at the wrong end of the stick, you are ok.
The simple stock market advice is " see where you are walking" and you will be alright.
Ya IM.. But this WB is five year...If let's say this is going to $4.. or 100%, WB will be worth...61c? I think now 24% premium is cheap as the mother can easily goes up 25% in the next few months. It is free.. so I just hold for fun... Let's see if there's a brighter future for gloves in the next few months. All Covid gone and back to normal 2021/2022 is premature for me...
The ASP for next 2 qtrs shld still be high as the order was locked in last year so the mother share can still go beyond RM3.00 next 6 months as Comfort can still show profit growth.
At RM3.00 for the mother share the WB shld easily go back to 60 cents. I took the chance and bought some at 38.5 cents just before the close today.
The pandemic not likely to go away completely so soon. The demand will be more as people are more conscious of physical contact.
Some people cannot add or subtract accurately. The closing price today was RM1.94. Dividend is RM0.04 cents. So the theoretical ex-div price is RM1.90. Where does RM1.70 come from? Have to ask the school kids.
Though it maybe undervalued, but many got burnt before and the hesitancy remains until now. Anyway, thanks to those that sold to me at much lower price cum dividend.
Cookie... unless you have a better investment or gave up on gloves... sell. 3 things. 1-gloves are currently settling at the bottom price now.. waiting for news to bomb up. All the sellings almost gone unless the glove companies gone bust because nobody buys gloves anymore. 2-Other counters in Bursa present more risk as ALL have gone past pre-covid price. All I see is Covid is blooming with more infections/variants and businesses will suffer due to the lockdown. Gloves still make the most money this year. 3-the WB is five years and Free. Unless you need the money to feed, just keep it.
It looks like the mother share is being supported at RM1.90 and WB RM0.40 level. I am not surprised if the syndicate is preparing to push up the prices anytime now.
It is very clear that if the mother does not go above RM2.30, no WB holders would want to convert to mother shares and Comfort will miss raising and collecting the RM400 million for their kitty.
Comfort Gloves WILL move the mother share to above RM2.30.
Thanks Danny, does it mean if mother share move to RM2.3 then we can convert the warrant to mother FoC? Otherwise how much do we have to pay to convert? I'm really blur on how this warrant works.
Since it is trading at a premium to the mother, Isn' it wise to sell warrant and buy mother because mother is at a discounted price?
Cookies..WB is trading at a premium due to the 5 years projection. To buy mother share only if you are in the money with WB. It is best to hold till over 2.5. I think this stock should be 4-5 fair value. ...looking from the low P/E prospectives.
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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....
imvu
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Posted by imvu > 2021-07-07 14:15 | Report Abuse
jutawan comfort .