The CW will be issue soon without saying because they must always profit on both mother and son. contact telling me they still working on the exercise price because like us, they do not know how good the earnings will be from next quarter, will be double? triple? same as flood when JCY can earn 160m in one quarter? nobody know yet, all we know is it will be good. So they have to be careful with exercise price, set too low and they will lose alot of money like the JCY-CD and set to high nobody will buy the warrant. But warrant should not stop the mother from going higher because you look back at JCY, even when it rally from .40 to 1.60 during flood , there were many warrant on it. In fact, the issuer must make sure price go higher to create interest otherwise who want to buy their warrant. But different story when you get closer to the expiry date of CW lah for obvious reason. But they also protect them self by only issue 2 for 1 ratio CW only. Many people just blindly buy CW but actually do not know how to calculate and lose alot of money, they make the most money from these people. Example they issue CW at exercise price RM1 with 2 for 1 ratio and listed at .15. Based on current mother price .73, the mother have to go up by another .27 just for you to break even only. You also look at all the warrants issue in the market and when they expire, 99% of the time they expire worthless because the issuer make sure of this outcome. This is why I never interested in warrants. Better to buy the mother low and ride the uptrend then buy CW which is worthless when you buy and also worthless when it expires.
Yes a percentage of it depending the number of CW they issue. They need it for hedging and control price near expiry of cw. This why I recommend everyone stay far away from any cw not just jcy cw. With cw, the bank already beat you the moment you buy the cw.
source tell me profit will be similar to the flood time. He also tell me Seagate last week give all the order from Beyonic to JCY because Seagate do not want to be drag in the Beyonic court case and only JCY have capacity to meet the orders. The price should be flying next week.
JCY: Eyes more growth after turnaorund. JCY International believes that things are looking up for the hard disk drive (HDD) manufacturer given the silver lining that had emerged recently in the industry. As such, JCY International executive director James Wong expects its recent turnaround in the first quarter ended Dec 31, 2013 (1QFY14) to be followed by “decent results” for the rest of the financial year. It is targeting to achieve RM2bn in revenue for FY14 ending Sep 30 from RM1.59bn in FY13. He said growth will be aided by the lift on the ban of foreign game consoles in China and with IBM planning to inject USD1.2bn (RM3.91bn) to upscale its cloud system. (Financial Daily)
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....
tasoke
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Posted by tasoke > 2014-02-23 12:49 | Report Abuse
Bankertan, any inform JCY CW issue by RHB ?