Why people hold warrant.. 1)Because of gearing. Eg mother 2.4, warrant 1.1 on 26th, once mother up 12c, and warrant follow thru.. Up 12c Mother gain 12/240 =5%, warrant holder gain 12/ 110= 10. 9%. So 10.9/5 =2.18 gearing ratio.
2) cheaper price, u can buy more unit of warrant with swtiching from mother shares.. Hold 2180 unit of warrant (RM1. 1) or 1000 unit of mother shares (RM2. 4).
The gearing also function in the reverse, when mother down 5%, warrant down 10.9%. Double on gain or loss..
*Gearing is the ratio of the stock price to the warrant price and represents the leverage that the warrant offers. The warrant's value is directly proportional to its gearing.* 15/01/2021 3:49 PM
Im speechless... Kpower is a nuklear now. Even the exdate has passed, the mother still shooting up. Im proud to be kpower shareholder. Gogogo Rm3 is not a joke. You can do it. Super power!!!
@Atomichabits would you mind explaining how to get 1.5 in the calculation below? Thanks
If everyone optimistic according to Karim boss ambitious to grow Kpower to 5Bil company.. Kpower warrant should hv 50% premium, so it may trade at ( using 2.4 price =2.4x1. 5 - 2.5 = RM1. 1.) RM1. 1 on 26th Jan.
Fsingmum, 1. 50 (50% premium, mean 100% of mother shares price + 50% lagi, so total 150% or x 1. 5) 1.3 (30% premium, mean add another 30% on mother shares price). 15/01/2021 5:23 PM
Managed to pick some at the morning today during the pullback. Surprised to see it went up so much in the evening. All the sifus, regardless the price goes up or retrace, if I have extra cash, can top up whenever I feel comfortable? Or best to pick when it pull back?
Healthy correction is needed. If follow daily chart, friday morning, profit taking happen & huge collection on evening. Let see this Monday, hopefully kpower up slow & steady w healthy correction.
how to expect healthy correction unless contra or margin call? Move sideway probably. Kpower is all good news so far.
Biggie Correction might be "cashing out" for CNY which is around the corner.
For now, i can only see it inching up little by little, sideway a little and before you know it.. RM3 and still steaming sailing up.
Loving Kpower every sec and supporting Karismatic Karim for delivering wonders to Kpower so far.
i am sure there will be multiple one by one "slowly" annoucement on their latest project. and that will be the Main reason that the it will propel the Share price to move higher.
One more thing to take note, i notice one member did mention about Share Bonus soon and i think it is possible because Kpower just done Subdivision only and NOT Bonus Issue. So get ready ya.
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....
AtomicHabits
542 posts
Posted by AtomicHabits > 2021-01-15 15:52 | Report Abuse
Why people hold warrant..
1)Because of gearing.
Eg mother 2.4, warrant 1.1 on 26th, once mother up 12c, and warrant follow thru.. Up 12c
Mother gain 12/240 =5%, warrant holder gain 12/ 110= 10. 9%. So 10.9/5 =2.18 gearing ratio.
2) cheaper price, u can buy more unit of warrant with swtiching from mother shares..
Hold 2180 unit of warrant (RM1. 1) or 1000 unit of mother shares (RM2. 4).
The gearing also function in the reverse, when mother down 5%, warrant down 10.9%. Double on gain or loss..
*Gearing is the ratio of the stock price to the warrant price and represents the leverage that the warrant offers. The warrant's value is directly proportional to its gearing.*
15/01/2021 3:49 PM