Posted by Morpheus61 > 2020-12-12 19:48 | Report Abuse

The following is a list of CFD's ('Structured Warrants' as they are called ONLY in Malaysia) In the Money: https://imgur.com/cEk679H Out of Money: https://imgur.com/KVsaLxJ It does'nt take a rocket scientist to figure that the Share price of THE ASSET (The Underlying Share) will be close to if not less than the Exercise Price of the Warrant at expiry. Historical data clearly shows that 95-98% of the investors lose money in CFD's. In fact. most issuer's around the world have this statement as a Disclaimer. 2 Pages of a Macquaire Issue Document can be viewwed in the following link. 2nd page contains all the DISCLAIMERS. https://imgur.com/zPEaNub The point here is simple. 1. CFD's have ONE CERTAIN result. The issuer wins.In 95-98% of the cases the holder of these warrants at expiry lose ALL their investment. 2. Warrants, by themselvews, have ZERO VALUE. They require an Underlying Asset. 3. The issuers are permitted by law to hedge n the asset without disclosure. 4. The issuers are permitted to short-sell he asset when short-selling was banned on KLSE. The authorities call them "Permitted Short-sellers" In all of the above, the investor has NO SAY. While doing all of the above, the ISSUER ensures that the price of the Actual Asset (The Share) is unjustifiably within the Exercise value of the Warrant (That really has no value). To top it all, the SC says "An informed investor is a protected investor" FYI, CFD's on Equity are banned in several countries including the USA. They are permitted on Indexes and Currency. Why are they banned elsewhere? The warrants they say are "Cash Settled". European Style more so :). Just like the casino.You call this investment ? From time to time, you have the very same issuers of the warrants issuing Target Prices (THEIR target price) to conveniently suit them. My only intention is to make people think about the wisdom in such speculative instruments. As if speculation on a REAL ASSET itself was not enough. DO WE STILL NEED STRUCTURED WARRANTS ? It's up to you !

Be the first to like this.

10 comment(s). Last comment by Morpheus61 2020-12-12 20:29

Morpheus61

2,144 posts

Posted by Morpheus61 > 2020-12-12 19:51 | Report Abuse

To be fair the Investment Bank's,the Structured Warrants on the Glove companies were a Really Bad Judgement call. Un-expected. Whatever it is, they are the death on investors. Imagine the huge sums of money the IB's are sucking out of the investors.

Posted by EngineeringProfit > 2020-12-12 19:51 | Report Abuse

Conspire and corrupt all the way up........

Close eyes...let happen

An analogy is human trafficking - an impossible task with involvement of multiple heads of the enforcers

RojaknMojak

1,234 posts

Posted by RojaknMojak > 2020-12-12 19:53 | Report Abuse

stop buying all thier nonsense. then they will have no choice but to stop

Morpheus61

2,144 posts

Posted by Morpheus61 > 2020-12-12 19:54 | Report Abuse

Take it up with the authorities. If everyone speaks up, some changes can be expected.

I am sure the valuations of the companies will be substantially different without these paper thrash.

Posted by EngineeringProfit > 2020-12-12 20:01 | Report Abuse

How many ceos got hauled to the court and got jailed?????

Morpheus61

2,144 posts

Posted by Morpheus61 > 2020-12-12 20:04 | Report Abuse

Just stopping Structured Warrants is good enough. Atleast assets will be priced fairly.

gemfinder

6,880 posts

Posted by gemfinder > 2020-12-12 20:08 |

Post removed.Why?

Morpheus61

2,144 posts

Posted by Morpheus61 > 2020-12-12 20:14 | Report Abuse

No foreign markets have Structured Warrants. Some have Contract For Difference. Why can't the IB call it that ? No balls ? But they are banned in many countries, including the USA.

Morpheus61

2,144 posts

Posted by Morpheus61 > 2020-12-12 20:15 | Report Abuse

Go check before you speak

Morpheus61

2,144 posts

Posted by Morpheus61 > 2020-12-12 20:29 | Report Abuse

In 2008, JP Morgan was the first in line for a bailout for their own misdeeds

Post a Comment
Market Buzz