Angie, its not a matter of conversion. You must see a few points to go into warrant. 1. It is cheaper than the mother share. 2. Look at the intrinsic value. 3. Any premium after conversion? 4. Expiry date. 5. Is the gearing worthwhile.
In MBSB case, the expiry date is 31/5/2016, therefore three more years to go. Conversion is +$1.00, so there is no premium in this case. Gearing is 1.72, so it is worthwhile to trade the warrant.
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....
necro
4,726 posts
Posted by necro > 2013-02-14 16:27 | Report Abuse
Why they buy mbsb..
Huhu