QUOTE(SKY 1809 @ Aug 7 2009, 03:52 PM)
Bursa CN at 20.5sen, Bursa should trade at rm 9.70 to break even ?
Right or wrong ?
You need to consider potential dividend given which will deduct out the share price.
Generous dividend is warrant's poison because warrant exercise price won't be adjusted due to generous dividend, nor warrant will get any dividend.
Any warrant underlying target stock which give dividend should trade at lower premium due to above mentioned reason,
QUOTE(Junior83 @ Aug 7 2009, 04:31 PM)
careful with new call warrant, they normally have it when they c the share downside trend is coming
RED army, Attack!!!

Yup, this one I agree.
When market hit low time, or depressed at low price, no investment house issued or little CW being issued, after market run up and hot again, issue like mad. Eventually most retailers always buy high or having high exercise price on the CW.
Investment houses are not stupid, they won't issue CW when KNM was 0.3x, but they are willing to issue when KNM now is 0.85. Somemore alll issued at 30+% premium means stock price currently need to surge more than 30% in order to breakeven your purchased CW cost in a year time.
For short term quick goreng, different story.