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This post has been edited by jacob888: Oct 16 2013, 11:06 PM

well..I would say the current price reflect 6 month or longer ahead..
in other word, investor are looking at 6 month ahead from now..they are incorporate intangible assets of Genting Singapore..they feel that Genting Singapore will worth more than the current price so they don't mind paying more in expectation for higher return

As of Genting-CP(call-warrant), RM0.305 today with exercise ratio and price of 8:1 and RM5.50 respectively. This will be equal to RM 7.94 of Genting share. Can we conclude that investors are buying a massive RM0.66 extra? We can't think of that way, this price shows investor expectation on Genting and Genting Singapore stock. They think that it will do well later on and don't mind buying expensive now..

its not convertible to shares rite? it will be settled in cash on expiry date rite?

it can convert to share..either during the tenure of the call-warrant or end of the tenure mean upon expiration..

call-warrant just give u the option to buy the underlying stock only, if u choose not to convert then u can leave it there or sell it before it expired..

saldopullt if that's the case, why don't you buy genting intl in Singapore exchange directly but you're paying 135% extra !!!
Some example like AP permit for import car selling extra 100% more expensive than other country, you're calling this "expectation for higher return"

Where's your logic and common sense, wake up !!!

well...can u please explain to me how I gonna pay 135% extra if I buy Genting Intl in Singapore exchange?
If I were to buy Genting Intl, I would need to pay SGD1.17 per share..where is the 135% come from?

bro, ur example is not really appropriate here. AP permit is sold by government, the government can decide the selling price they want.
stock prices is determined by demand and supply, and if it is being manipulated, it is also perform by institutional investors or majority shareholders.
I never heard of majority shareholders would want to manipulate a call-warrant.
IF u were to talk about AP permit, since it is sold at 100% more expensive than other country, why people still trying to get it?? people are fighting for it?why?
because of the potential return u might get if u have a AP permit..

This post has been edited by saldopullt: Sep 7 2009, 07:47 PM