Which call warrant good to buy on tomorrow? Hope this time I can retired earlier by all in Hengyuan call warrant. Sell house sell car & buy call warrant.
Based on 2021 Q4 report page 13, HY has 280mil worth of refining margin swap contracts and liability of 187 mil out of the contract, the liability is due to the increase in crack spread and it cancelled off the gain from crack spread increase. With this much amount of hedging, I don't see how they will benefit from the crack spread, any increase in the refinery margin will just offset by the swap contract, unless the crack spread increase significantly. I also read in the 2021 annual report page 113, as per their hedging position in 2021, every 10% increase in refining margin will only increase profit after tax by 5mil, due to the swap contract.
I'm holding some position in HY and thinking to topup more, but after this finding I'm thinking twice before I act. Appreciate if anyone can confirm my writings above.
sparrow, it is best to wait for the next qr to be out and see their earnings, and then only you decide want to buy or not at that price. because that is most rational.
I agree, wait for Q1 report out will be too late, price would usually shoot up before report thanks to insider trading. It’s the risk I have to consider, anyway no investment is risk free, high risk high return. Q1 report should not be bad, just might not be as good as ppl expect. Hope I’m wrong, I have stake in it too
I am undergoing a weird thing recently that some investors own hengyuan but doesn't look bullish on HengYuan. I found unreasonable. This may happen if people force him to buy what he doesn't want? Is this the case?
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harold8990
349 posts
Posted by harold8990 > 2022-05-04 12:30 | Report Abuse
take extra care when a stock gets a lot of attention and suddenly lots of article out especially by IBs