Even if PR theoretically worth nothing at current price but the 2 inherited warrant got time value. Instead of selling PR I'll buy more PR at resonable price.
I feel many forumer here is so worry on insas prices drop.. as I said.. if u worry then u shall quit now and collect bak later af the exercise.. one of the forumer here wanna ban me to commend in this insas forumm... kawan, no need to this at people back... it shown to me tht u r very worrying wth yr investment... and you r not ready to take the risk in relating to yr investment.. 200k? Very big.. u can earn it thro insas but also can lose all wth it...
What will be the face value of the RPS and warrants when they are listed? Theoretically the warrants will worth only RM0.10. Why? Because exercise price of RM1.00 plus RM0.10 for the warrants, the premium over mother share is 37.5% which is fair IMHO. Now what will be the value of RPS? Everyone knows it won't worth RM1 during listing date. Let's assume you do a NPV with annual dividend of 4sen, theoretically the RPS should worth RM0.80. So the Sum of Part should be around RM1 or RM1.10 max! So right should not worth more than RM0.10. Don't forget those that buy the rights have to wait until March before they can get the securities. A lot of thing can happen then. So it should be further discount.
To me, as an original investors, if I can realized the gain in RPS and warrants by selling the rights, then I will sell now. But if the rights price is not worth it, then I will subscribe to the rights cause my cost for mother is low anyway. And I have longer term view where I think eventually the SOP of the warrants and RPS, will give me decent return. But for those that by the rights from market is not advisable.
And, you have seen with your own eyes the PR at a high of 0.305 yesterday morning.... that showed you it is possible that the warrant will be trading at at least 0.50 later....
Sell mother sell mother and buy the PR.. sell mother.. sell mother and buy the PR..
Mililia is basing the price of the warrants based on the price of mother today at 81sen. He already assume a 37% premium for the warrant which I agree is reasonable. Of course if Insas mother moves up, the theoretical warrant price should be higher.... depends on what is your assumption on the mother share and premium....
RPS shall trade at ard RM0.90+, however, if Thong let it open at RM0.80, just hold it or buy it (if you wanna safe return), you shall enjoy RM0.20 + Rm0.04 X 5 years if you hold till expiry date, which is around Rm0.40 gain in 5 years time. RPS can be redeemed at RM1.00 upon maturity. Insas could be a cheap proxy to Inari.While Inari is trading at more than PE 15 times, Insas is only at PE 4+....If you really believe in Inari's story, clearly Insas is a better option in view of it's relatively cheap valuation.
The question is if you buy 1,000 PR at RM0.215 (RM215) and subscribe it by RM1,000 then you can get 1,000 RPS and 2,000 Wa...go to figure out the equation to see whether you can make money or not...1,000 RPS+ 2,000 Insas-WB= RM1,215. If you think can then buy...if you think cannot then sell....
My guess is RPS at RM0.90 and Wa at RM0.20+....most importantly is how do you see the future outlook of Insas in the next few years....If Insas go holland then all will go Holland..If Insas go heaven then all will go heaven...
u better keep cash and wait ... everi counters also veri cheap ... my mantra is ... when everi thing are getting cheaper, we better keep our cash and wait for few more months ... my bet is still on october is the best.
u all know wat is warrants or not ? nobodi convert warrants lar ... onli donkeys or management will do tat. If u are not the management than u have to be the donkeys. no believe leno then go Ask your broker, ask your banker, ask Zeti, ask najeeb, ask kapal sink ... they will tell u the same.
NAV, PE and Div may not be appropriate to evaluate Insas anymore...!!! Benjamin G theory is more appropriate for manufacturing business tht time bf 1960an... Shares for Rich is to accumulate funds from minority.. After tht he used yr cash and expect to pay u at lowest interest as possible... They dun rely on shares cap gain or dividen for living... They receive their director fee monthly or annually... kikikikiki
And, you have seen with your own eyes the PR at a high of 0.305 yesterday morning.... that showed you it is possible that the warrant will be trading at at least 0.50 later....
Sell mother sell mother and buy the PR.. sell mother.. sell mother and buy the PR..
you have seen with your own eyes the PR at a high of 0.305 yesterday morning.... that showed you it is possible that the warrant will be trading at at least 0.50 later....
Sell mother sell mother and buy the PR.. sell mother.. sell mother and buy the PR..
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sephiroth
14,138 posts
Posted by sephiroth > 2015-01-28 16:14 | Report Abuse
buy pr, then gotta top up $$$ baru jadi pa mah, then baru 'free' warrant mah