LBS director very clever, all convert warrant into mother shares. QE is not a big deal. last year end UNITED STATES also kept worry about FISCAL CLIFF, but end up solve the problem just early in Jan 2013.
Now the problem is those short seller uses QE issue to short sell and make profit. EPF also throw KLCI 30s stocks at high and will buying back soon. thus we see big drop in our market . all are synthetic , not even a crisis, just purely speculation.
There you go. I totally agree with Meng Fatt. There is no crisis here in Malaysia. Just foreign funds exiting or some people using QE as an excuse to shake the financial markets a bit. As long as people don't panic sell good counters (undervalued, good momentum, low foreign (aka American) funds), this counter should be alright.
Mind you, good momentum stocks can remain at overbought levels for a very long time. All technical indicators are still positive. If this counter can have a successful break-out above RM1.96, it will shoot up further. Otherwise it may consolidate between 1.78 - 1.96 for a few weeks unless there is a panic attack.
IMHO, the company can buy back shares to signal confidence / support for the share price at that level and reduce free float of shares in the market etc. Although they bought back 3000 lots, this is only less than 9% of total traded volume today which means there were plenty of other interested buyers that bought today.
WA should be a very good stock to play in the coming weeks once buying sentiments return. Both Maybank and CIMB are maintaining year end KLCI target of 1840-1850.
Anyway, another humble opinion. Read at your own risk.
Forgot to mention that we may see KLCI going down further but luckily for you, this counter is not part of the index so unless someone panic and hit the sell button .... One good indication today is that there were 65% sell downs today but price closed lower 1 sen only. The force is quite strong with this one.
the reason all directors exercising so many LBS shares from warrant and keep issuing ESOS is for them to gain big control of the company. and highly possible will be privatized , maybe in a few years time. warrant can buy any price below 90 cent, but have to hold
Actually I don't think the annual dividend of 2.5 sen will be deducted from the warrant price because it would have been priced in already - with reference to last year's price around 27-29 Aug with 28 Aug 2012 Ex-Date.
Warrants do not pay dividends. Dividends are only paid to owners of the business (mother shares). Warrants only give you the right to buy into the mother share to own the business so you are not the owner = no dividends.
I think contact your broker is the best tip. However depending the price you bought the warrants, it may not be wise to convert now. The directors who converted probably got theirs for free or low price for e.g. 0.30. When you convert you lose the time value of the warrant. With the volatility of the counter and time value (expiration days 17xx days), this warrant shd be priced at RM1.05 at current LBS price of RM1.80. I'd say wait for opportunity to sell for profit later.
Azli. Nope. Warrant price is not priced in that manner. There are multiple methods to price a warrant but generally it will take into account the strike price (&conversion ratio), annualized volatility of mother share, expiry date. These will determine the premium of the warrant which is the price. With that you will have the gearing and premium ratio of the warrant (check the general info section of the warrant in your trading platform). One method is the Black Scholes method.
Anyway these are only methods to value a warrant as reference. The market will value the warrant based on actual trades and the market is always 'right'.
Yes. Generally buy low sell high. Sounds simple but investors often face the issue of timing : when to go in and when to get out and this is what makes this whole thing interesting. Good luck.
Both. This is just the beginning. More good news should come in the form of new projects, what is happening to the last piece of land in Zhu Hai which is the most valuable piece, performance of partner companies in CN / HK, new land grab in Malaysia, dev in Iskandar etc. People who sell down are just allowing portfolio managers to collect at a bargain price. Who wouldn't want to add an asset in portfolio which will give 5% dividend yield in next few weeks together with cap appreciation in the near term. Huge volume transactions seen across the 1.80 mark which shd form a strong base for rebound and support line for consolidation. Just my personal opinion.
Zhuhai last piece of land worth more than RM 740 MIL, this amount is nearly equal to LBS 's market cap. sell one piece of land can take over the whole company. one more thing, Zhu hai holding is paying LBS in foreign currency, which means, LBS can earn forex income from selling the land when convert back to ringgit
Details of Corporate Proposal Whether the corporate proposal involves the issuance of new type and new class of securities? No Types of corporate proposal ESOS Details of corporate proposal Employee Share Option Scheme No. of shares issued under this corporate proposal 13,550,500 Issue price per share ($$) MYR 1.000 Par Value ($$) MYR 1.000
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fabregas88
321 posts
Posted by fabregas88 > 2013-08-23 22:24 | Report Abuse
but QE seems going to implement slowly on year end if not mistaken