When mother is on the move, warrant is obviously better choice for small players like me because of lower entry cost for such great potential growth company.
behind every trade is a human being and different person has different reasons to do different things.
some just want the dividend in their pocket so go for the mother, some funds cannot buy warrant so go for mother, some just afraid when price correct warrant will correct more in % so there could be so many different reasons. we may think warrant has higher upside but others' reasoning are not wrong either, that's what makes the market interesting
i took a bit risky move for the past few days to take advantage of negative premium, to change all the mother to two son, hopefully i made a right decision
Mother share price RM1.33 = RM3.325 before split (special div is angpow, so forget it :) Current market capitalisation = 2.85bil
For other stocks, I will not hesitate to sell to lock in my profits once my TP is reached.
I like Ekovest from the beginning for its visible great future and the disposal of 40% Kesturi helped the Company strengthening its cash position to meet its cash flow requirement for SPE & EkoCheras mall without needing to ask money from shareholders (Ekovest did right issue for the acquisition of Duke 1 few years back)
Along the way, the management started to get projects from ROL, Pan Borneo highway & recently Duke 2A. Also, the management has participated tenders of 10b currently, though not sure what will be the winning rates, may be 20%, 10% or 5%?
To me now the risk will be the ability of the management to carry out the jobs in hand. But seem the risk is quite minimal for they are hands on management with more than 30 years experience and results delivered in the last 2 quarters.
That's the reason I choose to continue hold all my shares in Ekovest until such day if I find even better opportunities & suited me
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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....
IamGoogle
836 posts
Posted by IamGoogle > 2017-02-13 22:32 | Report Abuse
Today (13/2/2017) after special div & share split:
Mother = 2.85-0.25=2.60 x2 /5 = 1.04
Warrant = 1.54 x2 /5 = 0.62
Warrant exercise price = 1.35-0.15 = 1.20 x2 /5 = 0.48
Premium = (0.62+0.48)/1.04 = 5.8%
3 months ago (14/11/2016):
Ekovest = RM2.46
Ekovest Warrant = RM1.36
Premium = (1.36+1.35) / 2.46 = 10.2%
6 months ago (17/8/2016):
Ekovest = RM1.63
Ekovest Warrant = RM0.685
Premium = (0.685+1.35) / 1.63 = 24.9%