worst case just exercise the warrant @rm2.30 next year but I reckon most retailers are punters and they don't have sufficient cash to do that, so ended up will just got burnt
mrcb right issue 1:1, the mrcb-wa conversion price revised from 2.30 to 1.68. The moment when they announced 1:1 right issue, you should sell this doom warrant. it sounds good that the exercise price drop from 2.30 to 1.68, but the problem is now the number of share also doubled, but their profit does not double, in terms of PE ratio, it's much expensive than before. After the ex-date, the price will likely be around rm1 +- 10cents. It's hard for them to reach rm1.68 by 2018-Sept (the expire date of this warrant). Don't forget there's a new fresh warrant coming, which is mrcb-wb, people mostly will goreng that one instead of this old washed out warrant.
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sayyouloveme
291 posts
Posted by sayyouloveme > 2017-05-11 14:47 | Report Abuse
uptrend. next level.