Q&A, General question on stock market
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 Jan 8 2014, 12:24 PM
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#21
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Junior Member
407 posts Joined: Jun 2009 
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QUOTE(gark @ Jan 8 2014, 09:55 AM) Company will issue new shares for DRIP, dilute other shareholders who did not opt for DRIP. Gark, can you please answer my question   Can you please tell me why do some warrants trade below their mother share price? For example: SKP-HA and SKP-CS both have the same expiry date but one HA is trading at a 10% discount compared to its mother share whereas CS is trading at a premium of 9% Why is there such difference?? Thanks!! |
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Jan 8 2014, 02:35 PM
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#22
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Jan 8 2014, 01:01 PM) SKP-HA is a put warrant.. which means it expect the shares to DROP to earn money But let's say i expect shares of SKP to rise in the future, can i still buy put warrants?SKP-CS is a call warrant.. which means it expect the shares to RISE to earn money They are not the same one trade at negative premium and one at positive premium. Best you study carefully on the strike price, ratio and leverage before you buy. Buying call and put warrant without knowing how to count all the info is a sure fire way to lose your pants...  Name | Type | Issue | Expiry | Strike | Ratio | premium | Leverage SKPETRO-CS | Call Warrants | 25/10/2013 | 24/10/2014 | 3.80 | 6:1 | 0.44 (9.46%) | 3.604 SKPETRO-HA | Put Warrants | 25/10/2013 | 24/10/2014 | 3.80 | 6:1 | 0.40 (8.60%) | 10.333 For the HA put warrant, the exercise to conversion ratio is 6:1, so with the current price of 0.075 so it's 0.45. The exercise price is 3.80. so 0.45+3.80=4.25. The maturity date is 24/10/2014, so let's say at 24/10/2014, the share price of SKP goes up to RM5, then what happens?? |
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Jan 8 2014, 03:26 PM
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#23
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Jan 8 2014, 03:14 PM) Put warrant you only earn money if the SKP share is on downtrend...If you expect SKP shares to go up, buy call warrants... But SKP shares are quite expensive.Read the warrant issue documents on the settlement calculations. Your calculations is all wrong... For put warrants the calculation is :- (Exercise price - settlement price )/ratio = settlement amount per share IF you expect SKP to go to RM 5 then... (3.8-5)/6 = -0.20 = 0 If you expect SKP to go down to RM 2 then ...(3.8-2)/6 = 0.30 cash upon expiry date Now the market price is 0.075 x 6 = 0.45.. you will only breakeven IF the SKP price is 3.80-0.45 = 3.35 Really you should not touch warrants....unless you have full understanding on the calculations If play warrants, wouldn't the ROI be better? |
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Jan 10 2014, 04:28 PM
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#24
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Jan 8 2014, 03:28 PM) Yeah .. and lose your pants faster too...due to the leverage.. anytime can 100% loss one especially you cannot calculate yet want to play... Gark, I was too blur. You buy mother shares you think can 100% loss or not? So these 2 are more straight-forward warrants rite? WCT-WC (9679WC) and WCT-WD(9679WD) For WCT-WC, the conversion price is 2.04+0.43=2.47( as of 10/1/2014) 4:27pm. So it doesn't matter whether the share goes up or not rite? Because the mother share price too expensive, I am thinking of buying warrants.. Do tell me if i am wrong. Thanks Gark!  |
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Jan 15 2014, 04:15 PM
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#25
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Jan 13 2014, 05:53 PM) Sometimes broker adsorb the charges to get more customers. Gark, thanks for helping me regarding the WCT one. If no good working relationship , mah change broker lah... many many choice for you to choose. But i have another question here. What can one do during pre-opening hours in Bursa? |
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Jan 16 2014, 11:14 AM
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#26
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Jan 15 2014, 05:58 PM) Enter queue for your shares. That's it. Let's say yesterday i wanted to buy shares of A at a price of RM2 and i put my GTD date until next week.Unfortunately, the shares closed at RM2.20 yesterday. Let's say at pre-market today people wanna sell the shares at RM2, will i be ahead of the queue of those who keyed in at 8:30am today? Thanks! |
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Feb 16 2014, 03:07 PM
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#27
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Jan 24 2014, 07:31 PM) Yes, that is why IPO is 'seen' as lottery... most IPO gains about 10%-30% within the first 2 days. Wah Gark, really ah? IPOs are seen as lotteries? I did not know that leh.However there are some IPO which performs less than 10% or at worst flat. Very rare if the IPO trades below the IPO price for the first few days due to IB supporting the price, but it does happen once a while. Meaning IPO normally price won't go down? I didn't notice leh. |
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Feb 17 2014, 12:36 PM
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#28
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(gark @ Feb 16 2014, 10:20 PM) Only if you sell it off by the first day or so.. at worse you broke even only. If you wait too long your risk of loss becomes bigger. But I've always thought IPOs come with a lot of uncertainty.But after seeing what you wrote, I think u r right leh. As long as you sell it within the first day, you won't lose one because IB will be supporting the share price. As long as you make money, then quickly sell la, don't be greedy. |
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Feb 17 2014, 12:39 PM
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#29
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Junior Member
407 posts Joined: Jun 2009
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QUOTE(TakoC @ Feb 16 2014, 08:32 PM) Those old timer would know. Last time people would go around borrowing IC from people and apply for IPO. That was when a lot of people made their fortune. But from what i see, most IPOs at first day won't drop one. Like Gark said, worst case scenario is break-even.Nowadays big name IPO don't shoot up 10% or 20% anymore (ahem, WPORT). It's those 'new fresh' IPOs that got people interest (like KAREX). Westport's share price did not fall on the first day. The way I think is, if i tell u there is a one-day business whereby you won't lose money but I can't guarantee how much you will make, will you enter the business? Remember, they keyword is u won't lose.  |
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