Posted by Mohd Iqbal > 2015-10-19 11:06 | Report Abuse

Mental arithmetic arbitrage exercise.

If warrant is worth 0.50 and exercise price is RM1, whilst the mother share is RM1.50. Might as well buy the mother share directly to avoid transaction cost in converting warrant to mother.

If warrant is worth 0.50 and exercise price is RM1, whilst the mother share is RM1.60, buying the warrant is better bcoz you gain 0.10. Will mother share then drop to equilibrium of RM1.50?

If warrant is worth 0.50 and exercise price is RM1, whilst the mother share is RM1.40, buying the mother share is better bcoz you are 0.10 better than warrant. Will warrant then drop to equilibrium of 0.40?

Mind boggling isn't it? Hehe. Happy trading all. Instead of quarreling about price here we might as well subject our mind to this issue.

Posted by BullRunComing > 2015-10-19 11:13 | Report Abuse

Hi Iqbal. Warrant usually is traded at premium. People buy warrant for cos it has bigger movement as compared to mother share. If you think that mother would keep moving up in the upcoming few days, don't care if warrant is traded at premium or discount, buying warrant will give you higher ROI as compared to mother share.

Posted by travoltakeong > 2015-10-19 11:14 | Report Abuse

thanks...I will decide on that date....

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erkongseng 21～10～15 warrant list
19/10/2015 10:39

Posted by Chin Pin Tan > 2015-10-19 11:15 | Report Abuse

Hi bullruncoming,

lets make an assumption here and just for the academic purpose, not for the pushing of share price or any other reason.

As we now the warrant is listed on 21/10/2015 with an exercise price RM1, could the price of warrant based on the mother share closing on 20/10/2015 minues RM1?

The logic of this computation is the fair value of the warrant is the difference between the share price and exercise price, so that the opening price of warrant will base on it latest fair value, but not considering the fair value during the split time.

Posted by BullRunComing > 2015-10-19 11:18 | Report Abuse

Hi Chin pin, I agreed with you. Assuming today closing price is 1.56. Warrant should be listed by 0.56. However, warrants are usually traded at premium. So its normal that price of warrant will be higher than the difference between exercise price and mother price.

Posted by travoltakeong > 2015-10-19 11:28 | Report Abuse

what was the price before the split?

Posted by Chin Pin Tan > 2015-10-19 11:31 | Report Abuse

I opine that the warrant price may drop when it lists due to panic sale, just like 16/10/2015 opening.

perhaps can collect some of it to enjoy the premium

Posted by BullRunComing > 2015-10-19 11:36 | Report Abuse

I can't tell the market will react in how since I am not a fortune teller but what I can tell is by fact that eventually just within few days, warrant price will go high and priced at premium. So if panic sale come, hold your cash and ready to collect at low. Remember what happened on the ex date of share split? Some people panic and sold at 1.37 but market closed at 1.51. Instant loss or gain of 10%? its your choice :)

Posted by Chin Pin Tan > 2015-10-19 11:41 | Report Abuse

yup, hope that the person who sell in 1.37 can sell cheap again for his warrant on 21/10

cheers!

Posted by BullRunComing > 2015-10-19 11:48 | Report Abuse

Haha If that happens please don't snatch from me, I'll get it! :p

Posted by pathfinder > 2015-10-19 12:11 | Report Abuse

Me first... : )

Posted by milodrinker > 2015-10-19 12:14 | Report Abuse

still can go in?

Posted by BullRunComing > 2015-10-19 12:38 | Report Abuse

Milodrinker. I can't tell, what I can tell is the counter is still undervalued with good growth. Will benefit from TPPA and perhaps the upcoming budget cos yesterday najib mentioned TPPA will benefit furniture export in muar. Pohuat is the one :)

Posted by milodrinker > 2015-10-19 12:45 | Report Abuse

thanks bullruncoming...may we all together HUAT in this counter!!!

Posted by BullRunComing > 2015-10-19 12:46 | Report Abuse

You already have it or you're gonna buy? Yeah surely huat :)

Posted by Ken Lim > 2015-10-19 12:47 | Report Abuse

Bullrun what is your TP is it still undervalue ?
So when they give warrant
How about the the burning. Factory in Vietnam
Will it affect the next profit in next annual report

Posted by erkongseng > 2015-10-19 12:47 | Report Abuse

进pohuat 7088 步入成功的第一步！敢于投资,丰收于后,哈哈！

Posted by BullRunComing > 2015-10-19 12:56 | Report Abuse

Ken, my TP may not be your TP, you can define your own TP but it is definitely undervalued. You can refer to its PE ratio as well. Comparing to similar company's PE ratio (homerit, hevea), Pohuat should be above 1.8 or more than 2. The question has been repeating and repeating, go and read back the comment.

Posted by 77huat77 > 2015-10-19 13:00 | Report Abuse

Thanks bullrun I am interested in pohuat thank for you explanation

Posted by BullRunComing > 2015-10-19 13:15 | Report Abuse

You're welcome. I was in hevea and homerit but I sold and move to Pohuat. I am just simply looking for share that has more potential gain, rather than share that already traded at high or resistance. So Pohuat has became my choice.

Posted by 77huat77 > 2015-10-19 13:36 | Report Abuse

Bull run it miss the free warrant promotion so it is worth to buy warrant tomoorrow ?
Hahahah

Posted by BullRunComing > 2015-10-19 13:40 | Report Abuse

I really can't tell how market will react to the warrant on the listing date, but mother share now is attractive, if you're anticipating a rise in warrant, definitely it has to be risen for mother share as well, in that case I'll suggest you to get mother share first. Wait for listing date and only see how.

Posted by 77huat77 > 2015-10-19 13:42 | Report Abuse

Thanks Thanks

Posted by BullRunComing > 2015-10-19 13:47 | Report Abuse

You're welcome. I am anticipating pohuat to go beyond 1.8

Posted by Inve3tor > 2015-10-19 14:21 | Report Abuse

hope today break thru 1.6!

Posted by BullRunComing > 2015-10-19 14:30 | Report Abuse

If today can close above 1.6 then really huat already.

Posted by milodrinker > 2015-10-19 14:32 | Report Abuse

hi bullruncominh, im newbies here

Posted by papaya > 2015-10-19 14:36 | Report Abuse

turbochart coming back.....just to tell everbody here that he sold pohuat....hahaha...never buy but keep on selling...

Posted by 77huat77 > 2015-10-19 14:37 | Report Abuse

Bought high hahaha at 1.57 so will buy warrant also the next day

Posted by BullRunComing > 2015-10-19 14:40 | Report Abuse

Hey milodrinker, welcome to here! everyone is here to learn :)

Posted by BullRunComing > 2015-10-19 14:41 | Report Abuse

Nice 77huat77, just hold and wait for reward, don't panic sell if price fall, its normal, as long as it doesn't fall to cut loss point then its fine

Posted by 77huat77 > 2015-10-19 14:42 | Report Abuse

Yes sir !

Posted by milodrinker > 2015-10-19 14:42 | Report Abuse

thanks bullruncoming, wat is the cut lost point?

Posted by BullRunComing > 2015-10-19 14:52 | Report Abuse

It depends on your buying price, your risk appetite. Above 1.5 is always safe. You can ask me again if it falls below that.

Posted by milodrinker > 2015-10-19 14:56 | Report Abuse

ok thanks

Posted by Chi Liang > 2015-10-19 15:29 | Report Abuse

Hi, just want to ask, i bought at price before split, RM3.00. Now the price after split only rm1.52, and if give warrant rm0.50, is it consider i m lose money? Sorry, i am new here and dont understand about warrant...

Posted by BullRunComing > 2015-10-19 15:34 | Report Abuse

Warrant will worth more than RM 0.5. For current price, even if u bought at RM 3.3 (before split), you're still earning. Let the profit run, after split, within weeks the share will run up.

Posted by mcchuah > 2015-10-19 15:49 | Report Abuse

Bullruncoming. You're spot on! RM1.59 now.

Posted by BullRunComing > 2015-10-19 15:55 | Report Abuse

Yes, follow me and you'll earn, I don't simply talk without fact. Tomorrow stock split settlement date, I can't tell if go up or down, but won't touch cut loss point I'm pretty sure, so just hold, if tomorrow fall, good chance to add position.

Posted by waimin6668 > 2015-10-19 16:00 | Report Abuse

Guys GOod afternoon , If let said my average price is around RM3.00 (before split), and my average price after split should be RM1.40:

[(RM3 / 2 x 4) + (RM1 x 1)] / 5 = RM 1.4

right?

Look forward for your advise. Thank in advance =)

Posted by BullRunComing > 2015-10-19 16:09 | Report Abuse

Suddenly so many new member coming in.
Waimin, you are right, so given current price 1.59, you are definitely earning. You're almost breakeven without adding the profit from the free warrant, after adding it you're definitely having a good profit. Anyway, do continue hold for both warrant and mother, share will rally very soon :)

Posted by BullRunComing > 2015-10-19 16:11 | Report Abuse

1.6! Let the profit run, pohuat is so bullish now!

Posted by Investor899 > 2015-10-19 16:13 | Report Abuse

明年上回RM3+

Posted by leelc99 > 2015-10-19 16:15 | Report Abuse

Omg..... RM1.60! Huat ah!

Posted by leelc99 > 2015-10-19 16:16 | Report Abuse

It is time to book some Japanese restaurant for a feast this weekend hehehehe..

Posted by Inve3tor > 2015-10-19 16:20 | Report Abuse

Wow! Pohuat! i love you! please 1.65!

Posted by BullRunComing > 2015-10-19 16:25 | Report Abuse

Let the profit run, as long as pohuat don't go below 1.5, continue hold!

Posted by Choco_82 > 2015-10-19 16:25 | Report Abuse

TA target price = 1.9+.
Bought and hold.. With profit increase in long term, I think will keep going up..

Posted by BullRunComing > 2015-10-19 16:27 | Report Abuse

I hope most of you listened to me weeks ago, to buy at 3.3 when it was still at 3.5. And continue to hold during the morning of ex-date which price once fall to 1.37. Congratulation to people who listened. You bought at low and gain from quick profit. Let the profit continue run, this is only the beginning!

Posted by waimin6668 > 2015-10-19 16:33 | Report Abuse

BullRunComing , Thank a lot for your kind advice. and nice to meet you all =) happy trading and happy earning =))