Sorry for the misunderstanding. As I understand, no matter what price is the warrants at, we still only need to pay rm2.08 to convert. If warrants go to rm10. We are still only need to pay rm2.08 to convert to mother share.
In Stock market there is only two directions.up or down. One party will say down one party will say up.
If you are bullish u long it and if u are bearish you short it. Simple as that. I always believe the voice of a person will not affect the stock price in long term. You can shout up up up and down down down.
Stock is an investment to some and a trading item to some.
Thx leeweiling for your sharing. Wow, if the warrant really reach rm10, hoseh liow. Just sell the warrant lah lol. But I have a feeling there will be some ratio campur the exercise price before can convert to mother share. Because I m sure TS Liew is not giving ESOS to all shareholders... lol.
Leeweiling: refer to yr earlier explanation just bit confuse how to get the warrant price at $2.08? Will it cheaper or worthy to buy mother share direct after 13th? I feel doubt on the calculations OR. Appreciate to enlighten me.
Zoomboom, if there is, they should be stated in the prospectus. They cannot simply change as they wan it. As the prospectus states that 1 warrant can convert to 1 mother share at the exercise price of rm2.08. They can't add at later point new condition. Well let's hope not since this is Bolehland. And if the warrants go to rm10 I wouldn't be surprised. Let ho seh tgt hahaha
If anyone feels I am wrong pls do share your experience in warrants play to enable more sharing with fellow commenter here
Loonlee,
The rm2.08 is not the warrant price. It is the EXERCISE price. I may confuse all of you. My above calculation is the COST of getting 9 mother shares. It's not the 9 mother shares market price at the point of time. Sorry if it leads to any confusion. And I am not a man who can see future as of whether at the 13th will be cheaper or not. Like I said, it's all up to you whether u want to pay the premium for Seven years of Time Value.
The price of the share price is the effect of the supply and demand of the market. I wouldn't be able to see that would I? No matter how good one fundamental is, without demand, it's just a so called lousy stock by many people.
The warrant is free. Then if u want to convert to mother share, u have to pay RM 2.08. NO MATTER WHAT THE PRICE OF mother share at that time. I think last date in 2018. lot of time to think. Normally people sell the warrant. i guess
Thanks leeweiling. Yeah let's ho seh together! (Not that I have a lot here though) Ariff bro, now that sound exactly like ESOS. Only thing is ESOS subscribe is RM1....
Thanks for the sharing bros n sis. Wishing everyone huat ah besar2!
Someone please correct me if i'm wrong. Exercising warrant will dilute the mother further as it has the same effect of adding shares to the total pool. As soon as the mother try to go above 2.08, it will have to face a strong resistance and tough battle against people who exercise their warrant (since it's cheaper than buying mother directly). Therefore the equilibrium point will be 2.08 for a long time to come unless ecoworld performance skyrocketed that even dilution can't stop it.
Hi all. I just purchased 3000 OR today. What would happen when trading cease tomorrow? Will they mail me the form from Friday onwards to exercise the OR @ RM1.20 each? Tq
ecoinvestor and leeweiling.. need yr expertise advise here. well, i was entitled 5 rights as i hold 10 mother share before ex. and i buy another 10 OR at open market. so means to say i need to fork out RM6000 to buy from the 5 right i entitled and another RM22,500 (RM1.05 for OR and RM1200)? and after this exercise means i will have 15 mother share from rights and 12 warrants?
i am getting confused .. thanks for all advise
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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....
leeweiling
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Posted by leeweiling > 2015-03-09 09:14 | Report Abuse
Zoomboom,
Sorry for the misunderstanding. As I understand, no matter what price is the warrants at, we still only need to pay rm2.08 to convert. If warrants go to rm10. We are still only need to pay rm2.08 to convert to mother share.
I hope I answered it this time. Haha