In order to encourage shareholders to convert warrant to mother (ordinary) share, the share price hv to go above 0.60 or 0.70 before expiry date on 30 July 2021 ... When each n every warrant converted to ordinary shares, Dnex would receive about RM350 millions additional funds from shareholders ... Very appropriate n reasonable funds raising for PING n Silterra ...
When the warrant is nearer to maturity the price will go down, unless the mother shares price go much higher than 0.50 since the exercise price to convert to mother shares is 0.50. Now mother shares is only 0.36. If you do not exercise, that is convert the warrant to mother shares before maturity date, the warrants will be forfeited, become no value at all. Have to be careful.
Posted by hisaishi > Feb 9, 2021 5:25 PM | Report Abuse
When the warrant is nearer to maturity the price will go down, unless the mother shares price go much higher than 0.50 since the exercise price to convert to mother shares is 0.50. Now mother shares is only 0.36. If you do not exercise, that is convert the warrant to mother shares before maturity date, the warrants will be forfeited, become no value at all. Have to be careful.
You are right. But will the mgmt extends the conversion date by one or two years until the mother share has pick up value substantially?? They have to consider the shareholders' interest too. If not extended, this will have a very bad PR image on the mgmt. Most had suffered badly when the previous CEO sold his ESOS shares bulk and quit his job causing the share price to drop drastically. I really hope they do not disappoint the share-holders this time.
they need money now.. if all convert to mothershare, Dnex will get additional almost 350million. so my guess they will push to above 70sen to make it more attractive to convert
at 10 sen now is the best time to buy ! mother is going to fly high next week.....mother sure above .60.... then every sen mother moves, son WD will follow.
Simple calculation- base on current price - mother 0.550 & WD 0.10
if you invest RM10,000 - WD - u get 100K units, Mother - u only get 18K units
if price goes up 1 sen WD u profit RM1000 Mother u profit RM180
Right ! Although WD only have 5 mths to maturity, however, with the strong trend now, is envisaged it would breach 0.60 in near term ......
Buy @0.10, once mother share breaks through 0.60, it would be one sen to one sen parity, WD will be at >5 times gearing, means the return will be 5x more than mother share ..... is worth to consider .....
Base on % if price 0.10 +0.01= 0.11. +10% If mother price 0.54 +0.01=0.55. +1.85% *Basically mean invest small amount in warrant the return of % is huge highest than mother share . *Same theory if price drop 0.01 warrants - 10% n mother only -1.85% Invest wisely n investment take yours own risk !!!
The warrant premium is low 9% (before win project 120++%) consider a good buy normally maturity date of warrants expired date is short (5 months) the premium will very high sometime premium 100 - 2000+% not sure !. Invest wisely investment take yours own risk !!!
My personal view mother win a project the fundamental is there , the room up side moving in 5 months time if mother come to rm 1.5 ( conservative ) son at least 0.30 (profit 200% return ).
Hidup dnex , but becareful , beware of big crocodile , profit taking, why up so much day by day... Happy trading good Luck all dnex investor..bull run for dnex
If Mother is RM0.72 and son is RM0.22, every sen mother gains, son shall gain the same, It is advantage to buy son if the mother is on the way to RM1.00
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....
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Posted by GoodBoy > 2021-02-09 09:27 | Report Abuse
In order to encourage shareholders to convert warrant to mother (ordinary) share, the share price hv to go above 0.60 or 0.70 before expiry date on 30 July 2021 ... When each n every warrant converted to ordinary shares, Dnex would receive about RM350 millions additional funds from shareholders ... Very appropriate n reasonable funds raising for PING n Silterra ...