yah i short it

Theoratically,if Scomi drop to 40 sen,the ICSLS is still worth 10sen,but the warrant is only worth half sen.The assumption is that the 4 % interest from the ICSLS and the time value of the warrant is ignored.

Still have time value mah...

sry, may i know the method to count the price of the warrant? 15 LCSLS will be given 2 free warrants right? so i thought it would be like :-

Scomi mother share price yest = 0.495

ICSL = 40 cents (4X10 to convert to mother share)

Warrant = 0.495 - 0.40 = 0.095...so i thought the warrant should be worth 0.095 isnt it?

Pandai pandai


Yes

You value a warrant base on the exercise price,time value,volatility and prevailing interest rate and possible divvys,not base on the price you paid to get the warrant.

Your calculation is right provided the 40sen you referred to is the exercise price,not the value of the ICSLS.That's why the reference price today is 0.095.

This post has been edited by lklatmy: Dec 16 2009, 10:06 AM

More interesting to read :-

Oil rebounds for first time in 9 days

NEW YORK: Oil prices rose Tuesday for the first time in nine days with OPEC predicting energy demand will rebound faster than it had previously thought.

Benchmark crude for January delivery added $1.18 to settle at $70.69 a barrel on the New York Mercantile Exchange.

In London, Brent crude for January delivery rose 23 cents to $72.12 a barrel on the ICE Futures exchange.

Prices headed upward just after the Organization of Petroleum Exporting Countries said it expected the world would consume 70,000 barrels more crude next year than previous estimates.

The 12-nation group, which supplies about 35 percent of the world's crude, said developing nations would drive demand higher.

The International Energy Agency in Paris also predicted late last week that demand was rebounding.

That didn't seem to matter and prices for crude and gasoline continued to fall through Monday, slipping below two-month lows on doubts about how much energy can be consumed during an extended economic downturn.

There are still enormous amounts of natural gas, heating oil, gasoline, and other fuels in storage.

But after an extended decline that saw a barrel of oil fall by almost $9 this month, money began to flow back into energy markets.

"Oil was looking for an excuse to rally, and they got it with the OPEC report," analyst Phil Flynn said.

"But the market is ignoring the fact that we have an oversupply of everything."

For most of the year, the U.S. only sipped at its energy reserves, cramming surplus crude and petroleum products into storage.

With such a large stockpile at home, and more waiting overseas on idled oil tankers, Flynn said it's hard to justify rising crude prices.

But that has been the story all year.

Oil prices doubled between March to October as investors pumped money into crude futures as a hedge against inflation.

Prices have declined from a 2009 high of $82 a barrel, but largely because the dollar has bounced back.

The price of crude and the dollar often move in opposite directions, with investors playing one off the other.

On Tuesday, both the dollar and the price of crude rose.

In other Nymex trading in January contracts, heating oil lost less than a penny to settle at $1.9033 a gallon while gasoline added 2.3 cents to $1.8497 a gallon.

Natural gas rose 15.8 cents to $5.49 per 1,000 cubic feet. - AP

If like that should be (intrinsic value):
ICULS = 49.5/4 = 12.375 cents
Warrant = 9.5 cents

But must plus a time value for 3 years (tv) & interest rate of 4% p.a., so should be higher than that, maybe around 15 cents & 12 cents respectively... wild guess only...

Genting SP finally moved out from 1.08 - 1.09 range trade already....

Affin also pull down by LCL

Affin small bank, lost 10s of million for LCL loan might be a bit too big for them to handle, and the loan don't know is clean one or not...

New version please.