Hi there,

I suppose you got the sample above from The Edge website/newspaper at http://www.theedgemarkets.com/my/AA/dashbo...5&exchange=KLSE. Basically fundamental and valuation are both different things.

In the case of fundamental analysis, it analyses the company’s financial statements (eg: Income Statement, Balance Sheet & Cash Flow Statement).

If you click on the website above and click “Edit” for Fundamental, you can see the weightage for each ratio like ROE (%), Net Interest Margin (%), Overhead Cost Ratio (%), Total Capital Ratio (%) and Gross Impaired Loans Ratio (%)”  to gauge the fundamental strength of the company. Of course, each company/sector has their different of analyzing. For instance, if you search for Tenaga, you will see “ROE, Net Margin”, Current Ratio (x), Cash Ratio (x), Gearing (%), Interest Cover (x)”.

On the other hand, Valuation takes into account of the share price of the company. Generally, it will tell you whether the company is a good buy based on current trading price. Take The Edge’s example again and you click Edit for Valuation, it shows “Price-Earnings Growth (x), Price-Earnings/ROE (x), Price/Net Asset Value (x) and Dividend Yield(x)”. All the valuations takes into account of the share price. Even a company which has a fantastic set of financial statement, the current share price might have already reflected the value of the company. Hence, the potential upside might be limited if one were to buy into the aforementioned company's shares.

Take an example of Company A and Company B which operates in the same sector. Assume both company’s fundamentals are intact (strong financial statement, healthy balance sheet and cash flows) whereby both is made RM10.0 mln per annum with share issued of 200.0 mln shares. Company A is trading at RM1.00 whereas Company B is trading at RM0.50.
Based company A’s P/E valuation, its current P/E is at 20.0x
Price/Earnings Per share = RM1.00/5 x 100
                                            =20.0x

Based company B’s P/E valuation, its current P/E is at 10.0x
Price/Earnings Per share = RM0.50/5 x 100
                                            =10.0x

In the above case, investors would usually choose Company B. However, it is always very subjective when it comes to valuation. Some might even choose company A because he/she thinks that Company A’s earnings might perform better than Company B's future earnings by 300% in coming year. If you’re not sure what P/E is, you can Google it.

As Warren Buffett says; “Price is what you pay. Value is what you get”.

Not too sure if my explanation is simple enough for you or was it too long. But just to let you know, I’m not associated with The Edge.

You need to wait; T+3 day for the money credit out- bank dont do losse money business.

1) Call warrants issued by market maker cannot be exercised. Hence, just use the current market price times to number of shares for cash settlement amount. Assuming current call warrant price is RM0.25, you will receive; RM0.25 x 5000 = RM1,250.

2) Refer to answer no. 1

3) Yes, you're right

4) No. Refer to answer no. 1. It all depends on the current share price of the call warrant.

5) Maybe you're confused. Call warrants is a type of structured warrants. The other type of structured warrant is put warrant. They all cannot be exercised and can be found in http://www.bursamalaysia.com/market/listed...#/?category=all

The type of warrants that can be exercised is company warrants.  Prefix for company warrants are -W. For instance, INARI-WA.

6) It depends. However, if the value/premium is negative when [Mother share price - (call warrant price + exercise price)], there is potential gains. Also, the value or premium of the call warrant tends to dwindle to zero when maturity approaches.

7) Prefix for call warrants are -C. For example, INARI-CB.

Some links for basic reading are https://www.osk188.com/page.jsp?name=faq_un...anding_warrants and http://www.rhbgroup.com/products-and-servi...tment/warrants/.

Alternatively, you can attend those seminars offered by your stockbroker about warrants trading or just ring up your dealer/remisier and ask them all your questions.

The conversion ratio is used to calculate the gearing, premium or discount and cash settlement. All the formulas can be found in http://1-million-dollar-blog.com/how-to-ca...-call-warrants/