hmm.. I read about some economist commend about infavourable tax structure after budget 2007.

they are lowering it even further.... btw some newer REIT are offering like 8-9% now do check it out

which REIT is offering 8-9%? we invested in Hektar at institutional price of RM1.11 which, if all distributable income is paid out, would barely touch 8%.

now that its trading at 1.03-1.04 we're pretty much stuck with it. REITs have a looong way to go but its good that foreign players like CapitaLand are coming in. without asset enhancement, REAL asset enhancement, there isnt much upside

it is good t see foreign player like capitaland come in, at least it build a more challenging market, but i just want to question..how do you consider a reit is good to invest?based on the property it acquired over certain time or, im just looking for your opinion.

http://www.nareit.com/portfoliomag/default.shtml

Good web site to read about REIT and how to evaluate REIT.

Dreamer

Different people would have different views on this. Some might prefer pure commercial properties, some like retail, etc. We liked Hektar cause the management is sound and experienced and the changes they have made turned out well. They have implemented step-up rent as well as tying rental to sales.

Also, Subang Parade has 2 acres of land and Mahkota Parade 3 acres which allows for future expansion. The properties aren't dependant on any group of tenants as most contributed abt 2% each to revenue (except Parkson).

As for other REITs locally, we had invested in Axis when it first came up but gave the rest a miss. Went overseas instead.

well if you wanna try "virtual trading"
You can try google finance it has a portfolio builder
http://www.google.com/finance?q=&hl=en

Wanna know what the experts are buying?
http://www.gurufocus.com/

Hello everyone,

I do have a question here. Well, I would like to know more about Warrant.

For example, when Company A put 'Call Warrant' onto Bursa Saham,

Exercise Price : RM2.00
Issue Price : RM 0.50
Tenure : 8 months
Exercise Ratio : 2 CW : 1 Share

So the questions are :-

1. The current A share price at the moment will be lower than RM2 ?
A : I assume 'yes'

2. If A share price increase RM0.50, the A-CW will increase RM0.50 too ?
A : I assume 'yes'

3. If A share price decrease RM0.60, the A-CW will become no value .. RM 0 ?
A : I assume 'yes'

4. I must exercise the CW in the range of 8 months it's been offered to public .. I can either buy the A share price by exercise .. or sell the CW as priced at that moment for A-CW at Bursa Saham ?
A : I assume 'yes' but it will be the company A who have to buy your CW and it might need some time for the issuer to process the exercise from CW into share.

5. I need to purchase 2 CW in order to exercise it for 1 share .. how if I only have 1 CW ?

6. Please add any other things i need to know ..

Thanks all for information. It will be an useful learning curves for myself and anyone else interested. Thank you !!

This post has been edited by WinDs: Dec 19 2006, 12:11 AM

Exercise Price : RM2.00
Issue Price : RM 0.50
Tenure : 8 months
Exercise Ratio : 2 CW : 1 Share

So the questions are :-

1. The current A share price at the moment will be lower than RM2 ?
A : I assume 'yes'
Not necessarily,the current price can be at,below or above the strike/exercise price

2. If A share price increase RM0.50, the A-CW will increase RM0.50 too ?
A : I assume 'yes'
Not necessarily,this relationship is known as Delta,Delta can be 1,>1 or<1.That is,the movements may not be in unison.

3. If A share price decrease RM0.60, the A-CW will become no value .. RM 0 ?
A : I assume 'yes'
Theroticaly yes,but in practice,there may still be time value left.So,the CW may be trading at 1 sen.

4. I must exercise the CW in the range of 8 months it's been offered to public .. I can either buy the A share price by exercise .. or sell the CW as priced at that moment for A-CW at Bursa Saham ?
A : I assume 'yes' but it will be the company A who have to buy your CW and it might need some time for the issuer to process the exercise from CW into share.

Since the tenure is 8 months,you either sell it back in the open market within the 8 months,or you exercise it at the strike price before or at expiry.If the CW is cash settled CW,then you will only receive the cash equivalent .

5. I need to purchase 2 CW in order to exercise it for 1 share .. how if I only have 1 CW ?
If you only have 1 CW,then when you exercise,you'll get half share only.If you have 1,000 CW,then on exercising,you will get 500 shares only.

6. Please add any other things i need to know ..

You should take note that most recently issued CWs are cash settled ,ie,when you request for settlement,the issuer will compare the settlement price against the strike price and pay you the difference in cash.You cannot ask for the underlying mother share.

anybody want to talk about bond? where to buy it? whats the minimum face value?

Thanks Lklatmy. That is very helpful for me i must admit.

Anyhow I've just figure out about the delta. However i am yet to understand the term ' settlement price ' and ' strike price '

So in this case, if I want to exercise the warrant, I will only make profits when

1. the A share price is at RM2.50 or more; since I pay RM0.50 for the warrant and the cash settled by current share market A price, RM2.50 - Exercise Price, RM 2.00 = RM0.50 ?

2. I sell the A-CW at a higher price than RM0.50 at the stock market

The most profit margin will be likely coming from selling A-CW at higher price but it's hard to achieve that since the warrant will be expired in a certain period which results in decreasing A-CW price as it getting nearer to the tenure deadline.

Thanks all.

Both your examples above are correct.

As for the last part concerning selling the CW at higher price to make profit and the assertion that it's hard to achieve is not totally correct,There are many CWs listed in Bursa that are way above their IPO price now.Nevertheless,IMHO,many of these CWs are grossly overpriced(out of the money) and may tumble if the market takes a correction.Holding on to these loosing CWs is the natural thing that most retail player will do in that situation and as you said,when the expiry date draws nearer,the price of the CWs will only decrease further.I think many retail players are not well verse with the characteristic of CWs and many will get badly burn 6 months from today when many of the existing CWs will be expiring.I must also add that of course,if the market suddenly turn bullish,the price of the CWs will also go up.

Some elaboration on "strike price" and "settlement price".

Strike price also known as exercise price is the reference price set by the issuer of the CW where the holder of the CW is entitle to purchase the underlying mother share, regardless of the existing market price .Eg,Maxis-CA with a strike price of RM8.11 enttles the holder of the CA to purchase from Khazanah (the Issuer),Maxis shares at RM8.11 although the current market price of Maxis is Rm10.

Settlement price is the reference price used in the process of cash settlement of CW.It is the previous day's closing price in most instances if settlement is requested before expiry of the CW.If the settlement is for CW outstanding at the point of expiry,then the settlement price is the weighted average of the last five trading days.

I have appended below the terms and conditions of Astro CW that is issued by CIMB and will be listed soon.The part concerning determination of settlement price has been highlighted in blue.




Summary of principal terms of the Astro CW

Issuer : CIMB
Guarantor : CIMB Bank Berhad (formerly known as Bumiputra-Commerce Bank Berhad)
Underlying Shares : Ordinary shares of 10 British pence each in Astro
Instrument : Up to 30,000,000 non-collateralised cash-settled call warrants over ordinary shares of Astro, exercisable American style
Exercise Ratio : 2 Astro CW : 1 Astro share
Exercise Price : RM5.55, being 100.33% of the 1-day volume weighted average market price ("VWAMP") of Astro shares on 18 December 2006 of RM5.5319
Settlement : Cash settlement only
The Astro CW give the holder the right to receive from CIMB, upon valid exercise or on Expiry Date (as the case may be), the Cash Settlement Amount, which shall be calculated as set out below, less all incidental expenses.
Cash Settlement Amount = Number of call warrants x (Closing Level - Exercise
Price) x 1/Exercise Ratio
= Number of call warrants x (Closing Level - Exercise
Price) x 1/2
Where the Closing Level will be:
(i) if exercised before the Expiry Date, the Closing Level will be the closing market price of the Astro shares on the market day immediately before the exercise date. Any Exercise Form received by the Call Warrant Registrar after 9.00 a.m. on any market day shall be deemed to have been received on the next following market day, or on Expiry Date, whichever first occurs;
(ii) if the Astro shares are delisted or suspended, the Closing Level will be the closing market price of the Astro shares on the market day immediately before the delisting or suspension; or
(iii) if exercised on the Expiry Date, the Closing Level will be the 5-day VWAMP of the Astro shares before and including the market day before the Expiry Date.
If the Cash Settlement Amount after deducting all incidental expenses is equal to or less than zero, we shall not be obliged to make any payment to the relevant warrantholder, and the Astro CW which have been exercised shall thereafter become void.
Issue price : RM0.325, being an amount equal to 11.75% of the 1-day VWAMP of Astro shares on 18 December 2006, divided by 2 (being the Exercise Ratio).
Exercise Period : Exercisable at any time for a period of 8 months from and including the issue date of the Astro CW.
Expiry Date : Date falling 8 months from and including the issue date of the Astro CW.

Merry Christmas and a happy new year to all forumers

Thank you, lklatmy. That's a brief explanation.

Merry Christmas & Happy New Year to you and others too. Let's see how the new year local bursa saham going to perform following the currency control at Thailand.

I believe it will bring more benefits to KLSE at short terms with all the funds direct into other share markets excluding Thailand. However in long run, the economic crisis back in 1997 might be coming back again. It's okey to exercise capital control I believe. However, we should ask, when is THE RIGHT TIME to exercise that. And in my opinion, it's still too early to do that. We would like to know more how US Dolar & China Yuan going to affect the economic next year, not to forget Japanese YEN too.

Thanks a lot.

Hey Iklatmy you should open one thread on warrants like you did somewhere else, that really helps

Thanks for your suggestion but I don't see many questions on WA,WB,CA,CB,ICULS,PA ect at the moment,so I will just provide a link to my article for those interested but the prerequisite is ability to read Mandarin.

http://chinese.cari.com.my/myforum/viewthr...filter%3Ddigest

BTW,please send my regards and holiday greetings to your colleague Raghbir,Peter Mah and Ong Lily,From Liew KL,their former colleague.

Not necessary when you see the on the foreign fund perspective especially those so called emerging fund that invested in those developing country like Thailand, Malaysia, India etc.
Foreign fund has plenty of choice, if that region is not favourable, they might as well pull the fund together go to elsewhere like India,, Brazil or Scandinavia country which is more exciting, not necessary Malaysia.
Also, Malaysia has a bad track record of sudden capital control also, while rules and regulation keep on changing which most foreign investors are more afraid of. While Singapore is more likely to benefit from the Thailand issue since they are well know to have most liberal and stable regulations among the region.

I don't quite agree as reported by newspapers that those hit by currency crisis like Thailand and Malaysia (S. Korea is a exceptional) has recovered and stronger now and can withstand another crisis. Yes, trade and financial situation is improving from last time, no doubt, much better than last time but not as strong as reported.
Still those country rely heavily on lower currency rate to boost export which eventually push start the GDP growth while domestic consumption is still relatively weak. If not the export growth, their economy might still at stagnant stage.

I think those warrant thingy, if we could have enough capital for its mother share. Then only worth it a try. Else, really... by the time reached all would goes down to drain man!

When I wanna make a fixed deposit, i can choose between normal and Al-mudharabah.

What's the difference between the two? As far as I can tell (I may be wrong), the interest rates are the same.

I'm just starting to invest, so play safe with FD first while learning more about other ventures.

I got the same questions.
I'm noob in investment.Just want to learn and if possible i would like to try ivestment.

1) How Fixed Deposit (FD) works?what are the goods and bads about FD?What is the minimum cash i need to start FD?what are the interest rate?which bank offers the highest interest rate?Which bank is safe and which is not?

2) How Mutual Fund (MF) works?what are the goods and bads about MF?What is the minimum cash i need to start MF?what are the interest rate?which bank offers the highest interest rate?Which bank is safe and which is not?

Are there anything else i missed?

Hope to get reply/information on this from you guys.

This post has been edited by kingmaker_20: Aug 2 2007, 04:21 PM

It is better you browse through the forum or you google the 'Fixed Deposit' and 'Mutual Fund' with 'Wikipedia'.