The prevailing low price of the mother share is not providing any optimism that the QA will be approved by the non management share holders. In such an event, the warrant will become worthless. That is possibly why it is trading at negative premium.
KT888, if the QA assumptions on earnings and price are based on a high side of the $50 to 70 range ie towards 70 and prevailing expectations is around 55 to 60 in the medium term, chances are that non Management shareholders will not approve and rather wait for cash out in April next year. Also the prevailing price of mother share will give an indication as to where the wind will blow. Currently the price of 65.5 to 66 is showing a no go. Whether to let go of warrant really depend on your risk profile.
agree with @zonefinder. I view that to curb the non-management shareholder not to vote against the QA, I think share price will be push up min 0.72 pre-EGM. If you vote against, you get equal/less than that. Thus, I believe we still has upside within this period.
It's just a matter of time before the "invisible hand" move the share price above RM0.71. It will be much higher than RM0.71.. I believe somewhere around RM0.75 if not higher to entice all shareholders to vote for the QA. The difference between the trust value per share is the incentive to support the management.
Many still think that share price will be the prelude of the outcome for the QA. But if you are from the management point of view, it is a GO or NO GO. No half way for it. Why? Because for every money return to the shareholders who voted against also means less capital in the trust to acquire asset, provided they still have time.
The reward to the management is too great for them to fail. Just because of these two reasons, share price will go above RM0.71, probably higher then since interest is earned daily. Even at RM0.75, are the current shareholders excited enough to vote for the QA? Depend on your answer, you will know where the share price heading too and what is the floor price for stock.
there is some thing about cliq wa every one needs to know...if the QA is not sealed by 10/4/2016 these warrants will become worthless...zero value...bcoz one of the term and condition of the warrants is you can only convert after the completion of QA. Now you know why it is trading at a discount....please check with tricor...registra for cliq.
agree with @speakup. It is just simple and logical. Nothing to lose at this stage now. Dont forget to have a look on Sona as well. Same... 11.48%p.a. return until maturity.
Until the approval from SC and shareholders... On and off you will see traders trying to push up the share price to see the reaction of the markets. I'm not surprise in few days or in a week or so, there will be effort to push it up to gauge the market.
It is imperative to gauge the market before any "invisible hand" can move the share price... What's more important is not the short term volatility. What's more important is the share price will decide the outcome of the QA. The question here is what's the reasonable price before investors feel rewarded to vote for?
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....
eatsmall
1,556 posts
Posted by eatsmall > 2015-03-31 10:07 | Report Abuse
DOW up but no kick the Cliq