this is phycology games.... they test those that have no cash and try to earn something here.... or they already earn enough from people that just follow and now is their time to harvest :-)
Whatever it is, I would still hope someone or everyone would goreng sona and its son betul betul tomorrow to breach 0.65 and 0.40 cents respectively notwithstanding how soon the QA would materialise.
@kcyim1970 - I believe not only you hope or wish that but everyone too.... but reality is we have seller on the other end waiting the buyer to buy from them. So it as simple as buyer vs seller fight on everyday. If the army of buyer is stronger with powerful weapon then they will win the war if the other way round then......
Well! At least Sona-wa inched up by half a cent today. It would be good for non-contra players like me despite being a very small player due to very limited capital.
@speakup - both mother and warrant are undervalued after the QA is confirmed and announce. As if today I won't have that answer either. Remember warrant always (90% of time) are at higher value after the conversion price. People buy warrant in general they look for two things. The first one is lower entry cost. Can buy more units with same cost. Second, they buy the future of the company. Provided you know what the company capability and they vision and they future expansion plan.
For example: If you read they strategy plan and business idea and you believe by end of this year the share price of Sona (mother) going to hit RM1 at least. If you bought Sona-WA now at 0.33 and hold until mother go to RM1 and decide to convert all your warrant to mother 0.33 + 0.35 = 0.68 you will make the profit with the gap of 0.32 . Well honestly speaking I believe a lot of investor especially the short term player will already sold it as the warrant price at that time should be around 0.8 which they will make the profit of 0.47 so who want to convert then? Th answer of course a lot but one simple one is they realize the potential of the stock and know they will doing well in future PLUS they have money now to convert therefore they decide to convert it to mother and continue keep it for future and no worry about the expired date any more. But most important they get it at lower entry cost and more units.
Of course some that read this May simply say sell the warrant first then buy back the mother. All is possible and your choice. Which the best approach you like and prefer. Sorry for the lengthy comment. Have a nice weekend!
Thank you powerwk for your kind explanation. I do agree with u on buying the warrant as a cheaper way to purchase a company share. However, in view of the sona which until now QA is not really confirmed. Therefore, selling off the warrant for a quick profit, then use the $ to buy the mother in the future would be more sensible, rite? Please enlighten.
snake_eye, refer to your remisier on how to convert the warrant to mother share.
@Shacks - I always say in stock market there are no right or wrong. Just individual preference. You can sell off warrant for quick profit. But base on what you say you does not believe in Sona business and management at least until they get confirm the QA. If that the case then don't buy first and just wait. If you trust this counter going to do well and believe in their management then does not matter you buy warrant or mother you still make money when the company growth and making profit :-)
No offend and I wish you get my point. Don't invest your money in counter that you scare and cause you can't sleep well. But there are other scenario or situation that you should not buy warrant -> when it close to the expire date (for example less than 6 months from maturity date). Hope this help and please use as reference only. Give it some thought.
@powerwk, thank you for your enlightenment. No offense taken, I'm here to learn and share.
I've monitored Sona since it's IPO and managed to bought some just after the CNY break. I'm waiting for this counter to announce some good news just like other fellow investors in here.
Thanks again for your explanation on how to invest in warrants.
No problem. We are here to share and learn together. But still the same advice a lot of folks here may not share the correct and true information. So every time you need to filter and then make own judgement and decision.
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....
derrickinvestor
9,084 posts
Posted by derrickinvestor > 2014-02-13 12:56 | Report Abuse
@potenza waiting to buy or waiting to dispose? Hahahaha