Dialog released a set of very promising results & 1.1c interim dividend. Looking forward to full year results in August 2014.. my guesstimate... minimum RM280mil PBT, EPS~RM0.09c. Upstream activities ie. Bentara Oil Field & Bayan Oil Field should start commercial production FYE 2015. We should see a gradual climb to RM3.90. Buy the warrant while you still can at this giveaway price...
Dialog warrant will get 1:1 bonus too and conversion price fixed at RM1.18. Don't miss this opportunity people... will be completed after world cup 2014 ! tomorrow more good news coming..
Ok... for every 1000 dialog WA, you'd get 1016 Dialog WA and conversion price fixed @ RM1.19. btw... there's only about 195million warrants in issue compared to 2.6billion shares and with a smaller outlay and 3X gains, i wont be surprised if the warrant command a higher price...
Yes Mr.Casanova.. these warrants are converted to ordinary shares when the warrant holders makes the prerequisite payment to the company; here the conversion price was fixed at RM2.40 per share (1 warrant for 1 share).
ramsyll, thanks for the note. I have the following q's, 1) So is it advised to to convert the warrants to mothershare now ? 2) Current WA price is 1.39 and Mothershare is 3.8 something. Since the conversion price is fixed at 2.40, I need to pay another 1.41sen ? 3) Once converted, the value of the mothershare is 3.80. Which means, I have bought the mothershare at cheaper price and I will gain 1.40 per share right ?
Mr.C..it seems that you have a misconception on how the warrant works. Let me see if I can explain it as simple as possible... A warequilibriumhe holder a right to subscribe it's share at a future date at a fixed price. In our case here, Dialog warrant holders have a right to subscribe for Dialog shares at RM2.40 anytime until 2017. The warrants were given FREE to shareholders who had previously subscribed to the Rights issue exercise back in 2012. Warrant price is traded at RM1.40 presently and mother share is traded at RM3.80. At this prices the warrant and mother share is in equilibrium... no gain no loss. Meaning if you had BOUGHT the warrant at RM1.40 and subscribed to mother share by paying the requisite amount of RM 2.40, your cost of mother share is equivalent to market price of RM 3.80. Original warrant holders would have made a profit of RM1.40 if opts to sell the warrant or subscribe to mother share. The important thing to note is that if as a warrant holder and you want to convert/subscribe to mother share, you need to pay RM2.40 to the company. As to whether to convert/subscribe to mother share, it would depend on your intention as to whether you want to reap in the dividends declared. Presently, it yields less than 1%, so for Malaysians, it's not worth it. But in future, when Dialog is cash rich and starts giving out more dives, then it's worth converting...later. Cheers.
Look for Bursa announcement made by Dialog sometime in 2012 on the Rights Issue. The warrant was issued free together with the Rights Issue shares then.
hello all, i am a newbie here, is anyone can tell me each time when a company declare bonus share issue, the warrant will compulsory reward with warrant issue too, really appreciat your help.
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....
beginner_1
291 posts
Posted by beginner_1 > 2012-06-01 17:03 | Report Abuse
wah shoot up to 0.58 sen already.