Why MSports bonus warrants issue is different from Xinquan:
(a) Xinquan warrants exercise price is RM1.00 which is higher than the mother share price. MSports warrant exercise price is RM0.18 which is lower than the current share price hence it is 'in the money' & more valuable!
(b) Xinquan price was near 2 years high when they announced bonus warrants issue whereas current MSports price is much lower than its 2 years high.
(c) There is no private placement for MSports. Private placement will further dilute the earnings.
However, in the long term, it still depend on whether the earning growth are sustainable, no negative surprise of accounting issue & whether they will resume cash dividends in the future.
If down tomorrow onward can buy more because free warrant can worth 10sen. Xinquan and CSL also up already today meaning buying support will come when price drop enough. Many stocks also don't give dividend. Is kiamsiap wrong?
On behalf of the Board of Directors of Multi Sports, Mercury Securities Sdn Bhd is pleased to announce that the listing application in respect of the Proposed Bonus Issue of Warrants has been submitted on 18 August 2014 to Bursa Malaysia Securities Berhad. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1712605
passerby I only attracted to those with good FA like Msports. If give free warrant is a bonus. If FA not good(eg loss making co) even with free warrant I will not buy. I have more than 20 counters portfolios.
this mati on the spot counter veri sueh wan ... so stop calling or mention my pretty name in this sueh counter ... sincerely wish u all the best ... BYE-BYE.
If use CAP WA as example Msports warrant likely to trade at about 20% premium. Hence Msports WA likely to around 9sen. If want to think about conversion that is 3 years away. Do stock market traders think what happen 3 years from now?
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....
jpleow
247 posts
Posted by jpleow > 2014-08-17 16:26 | Report Abuse
Why MSports bonus warrants issue is different from Xinquan:
(a) Xinquan warrants exercise price is RM1.00 which is higher than the mother share price. MSports warrant exercise price is RM0.18 which is lower than the current share price hence it is 'in the money' & more valuable!
(b) Xinquan price was near 2 years high when they announced bonus warrants issue whereas current MSports price is much lower than its 2 years high.
(c) There is no private placement for MSports. Private placement will further dilute the earnings.
However, in the long term, it still depend on whether the earning growth are sustainable, no negative surprise of accounting issue & whether they will resume cash dividends in the future.