This warrant is a derivative product expiring 28.10.13 with a fixed exercise price of RM1.08(before adjusted price of current rights issue),you want all the cows to follow the cow herd. RM1.08 adjustment=[(1 + M) / (1 + (R / S) x M)] x E
if u target mother can go at RM0.50...why u sell now..better wait n see..or collect more below 2 cent...i don't think price can drop again below 1 cent..next week 21/5/2013 payment must be completed...now KLCI still bulish...
MAS-CQ expiry 18/12/13 conversion 1:1 exercise price 0.80(before current adjusted rights issue). Just compare the difference between MAS-CM & MAS-CQ. Don't get caught by this gimmick. The market price of MAS at that time between RM1.20 -RM1.60 /RM1 shares.
MAS-CM is sooh cheap that even a kindergarten kid would like to participate as the price money is already known at 0.50 cts. Take eg AFFIn-CM now 0.17,exercise RM3.50,mother share RM4.00 DRBHCOm-CU now 0.07,exercise RM2.80,now market RM2.75
Just be cautious, with exercise ratio less than one. theoretically CM price movement magnitude will be magnified compare to the mother share it self.
Over short horizon, it is still ok. over long horizon, there is tendency punters will go after CM & leaving mother share without any participation because every spike in MAS, CM price will spike in higher magnitude compare to underlying.
It is going to invite manipulation soon enough. If one got sufficient bullets, he only need to load CM, after that fry Mas since CM price move faster than mother share.
Still unbelievable this kind of condition ever exist, so ideal for manipulation. First time encounter ,what you all say?
Absolutely correct,,nonoman,,there'll be a euphoria and punters will be carried away.The time horizon for conversion is so close and when volume tapers off,the bleeding begin.
i believe the quarterly announcement by the mas will be good by the end of this month...since they get so many BN project previously, plus alot of people fly back during the
Adam Loh: it's good that you give an early warning system to investors. MAS-CM expiring on 28/10/13 issued by Ambank is not similar to normal warrants. Investors have to convert as per agreed price/call option ratio 2:1 and the adjusted price is 0.40 cents per conversion. Meaning to say pay RM800 just to get one MAS mother.
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....
benhctan
305 posts
Posted by benhctan > 2013-05-14 09:15 | Report Abuse
This warrant is a derivative product expiring 28.10.13 with a fixed exercise price of RM1.08(before adjusted price of current rights issue),you want all the cows to follow the cow herd.
RM1.08 adjustment=[(1 + M) / (1 + (R / S) x M)] x E