Low premium is better, mother share price RM 1.45, warrant only RM 0.60, exercise price RM 0.90, expiry 4/7/2016.
RM 1.45 - RM 0.90 = RM 0.55, so the premium formula is equal to = current price of warrant minus difference between mother share and exercise price, RM 0.60 - RM 0.55 = RM 0.05 only...
Even call warrants like DRBHICOM-C1,C2,C3,C4,C5, basic premium is RM 0.15, some more the conversion rate is not 1:1, MITRA-WC IS 1:1, 1 warrant can exercise 1 new mother share!
Outstanding contracts in hand is RM 1.8 billion, obviously warrants to receive all benefits. Just my 2 cents, my posts are for educational purpose only.
Hotrod. Agree that TP at 1.97 is achievable but feels that profit taking will kick in before CNY and price corrected probably to around 1.36 before the next wave after CNY.
Excellent day for MITRA share holder. Rm 1.5 crossed and next will be testing rm 1.8 before February end financial result out. MITRA will exceed rm 2 and heading to rm 3 if they able to replicate nov/dec/jan success to capture another big contract in February or mar. This stock will give premium reward for those investor that trusted the share and willing to hold for mid term. ( 6 mths range ) Expecting nothing less than 100% premium. ( invested two mths+ with > 50% gain n half way to go...)
This company is highly likely to report RM80 net profit for FY 2015 predicated on its Wangsa 9 condo project and its RM1.8 bil contracts order book. So, TP of RM2 is not unrealistic.
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....
Harryt30
181 posts
Posted by Harryt30 > 2015-02-08 17:04 | Report Abuse
RM1.50 maybe coming soon, if got volume...