Posted by stingray_ea > 2020-02-19 14:44 | Report Abuse

No hope

Posted by mk2507 > 2020-06-12 07:57 | Report Abuse

patience now from 40 cents to rm 3.20...who is laughing to the bank now...

Posted by insidertiptip > 2020-09-04 19:41 | Report Abuse

quickly dump dump dump dump dump ...

Posted by witan > 2020-09-11 00:58 | Report Abuse

FYI...Worth a read

Unlike a company warrant, a structured warrant is issued by an IB in return for a premium. So the first investor buys the structured warrant directly from Macquarie, and then the warrant is subsequently traded freely on Bursa just like any other share. At the expiry date, if the mother share price is above the warrant exercise price, Macquarie will settle the difference in cash. If the mother share price is equal to or below the warrant exercise price, the warrant will expire worthless.

Now in this case, Macquarie issued this warrant C67 on 3 February 2020 (before the covid19 bull run) with an expiry of 16 Oct 2020 (next month).

With an exercise price of 1.67 and an exercise ratio of 1.333, Macquarie will have to compensate in cash to all warrant holders if the mother share price close above RM1.67. For example, if the mother share price close at RM5, Macquarie will have to compensate RM2.50 per warrant [(5-1.67) / 1.33]. If the mother share price close at RM8, the compensation is RM4.76 per warrant [(8-1.67) / 1.33]. As you can see, even though the difference in the mother share price is just 60% (8/5), they will need to compensate 90% (4.76/2.50) more. This is the leverage effect of a structured warrant.

Now the next thing that people need to know - just 2 weeks ago, Macquarie issued a report with a TP of RM30. Today they issued a new report with higher profit forecast for 2020, 2021 and 2022 on the basis that ASP is increasing faster than expected.

At the same time, he halved the TP on the basis that "ASP cannot sustain forever". What changed the analyst's forecast within this short 2 weeks? Did he suddenly talk to industry leaders worldwide to realise that ASP will not last forever? He did not know how to do his job previously and suddenly now he knows? Did he suddenly have a crystal ball?

Or did some head of department from the derivative division realised they shouldnt have issued C67 because they didn't expect the bull run sparked by Covid-19, spoke to the IB CEO, who then spoke to the head of department of the research division, who then had a "word" with the independent research analyst?

I'm not accusing anyone of anything, I'm just stating the facts and "possible scenarios". You make the judgement. This is something we need to ponder upon before taking in the headline RM5.40 downgrade report.

Posted by DickyMe > 2020-09-12 12:31 | Report Abuse

Why single out MAC's warrant. Even CIMB has it's own warrant expiring on 30th October 2020 at RM1.50 exercise price. RHB's warrant expiring on 27th Oct 2020 at RM1.95.

Posted by sting65 > 2020-09-21 22:27 | Report Abuse

@witan

Thanks for explaining on the above call warrant but just to check with you, how did you come up with an exercise ratio of 1.33. Thanks.

Posted by Morpheus61 > 2020-09-21 22:31 | Report Abuse

Oh I see now. Dickhead is actually a Macquarie stooge hahahaha

Posted by Morpheus61 > 2020-09-21 22:34 | Report Abuse

Sting the details are on the announcement @ Bursa website

Posted by sting65 > 2020-09-22 13:56 | Report Abuse

@Morpheus61 Thank you

Posted by cucubud > 2020-09-27 13:25 | Report Abuse

With an exercise price of 1.67 and an exercise ratio of 1.333, Macquarie will have to compensate in cash to all warrant holders if the mother share price close above RM1.67. For example, if the mother share price close at RM5, Macquarie will have to compensate RM2.50 per warrant [(5-1.67) / 1.33].

Can explain how the call warrant price (4.81) fit into the equation?

Posted by Morpheus61 > 2020-09-27 13:43 | Report Abuse

Cash Settlement =No of Call Warrants(1 X (Closing Price – Exercise Price)) /Exercise Ratio

Posted by Morpheus61 > 2020-09-27 13:44 | Report Abuse

Cash Settlement = No of Call Warrants X 1/Exercise Ratio X (Closing Price – Exercise Price)

Posted by cucubud > 2020-09-27 13:50 | Report Abuse

That means it is call warrant price - exercise price then divide by exercise ratio?

Posted by cucubud > 2020-09-27 13:51 | Report Abuse

Not mother share price - exercise price, right?

Posted by Morpheus61 > 2020-09-27 13:52 | Report Abuse

Closing price is mother share price

Posted by cucubud > 2020-09-27 14:12 | Report Abuse

Does it mean that if the mother share price is 8.07, the whole thing is break even if I bought the call warrant at 4.81? (8.07-1.67)/1.33= 4.81

Posted by Liquidity > 2020-09-28 22:37 | Report Abuse

Yes you are right cucubud.

Posted by cucubud > 2020-09-30 08:25 | Report Abuse

Thank you so much, Liquidity and Morpheus61.