sifu-sifu pls tell me wat is warrant ... i ask my fren but he not really sure also ... just said high risk high gain only got alot of detail i need to know also:p

TQ advance ... wat warrant u sifu this is safe n best buy?

Not surprise that they don know as most of them just follow what others said.... if ppl say warrant high risk then yes warrant is high risk.....

In actual fact yes warrant has a higher risk no doubt about it

1. Warrant has an expiry date
2. Warrant is a vehicles for a company to raise fund for their business expansion.

Give you a simple example. Company ABC

ABC mother share is trading at RM 8.00

It want to raise fund... so they issues out xxxx... number of warrant

For example the warrant is being issued at RM 0.50 sen per warrant. After you buy the warrant you can choose to convert the warrant to mother share with conversion price which is stated by the company ABC may be RM 7.00 per share. Therefore by converting the warrant to mother share the company get more cash from the conversion....Mostly is done by the director themselves for normal ppl they buy warrant for short term trading as they can gain more from trading warrant compare to mother share... But the risk is there as warrant got expiry date maybe 2 years or maybe 5 years up to the company......

How about warrant raised by other companies like fund houses?

And some warranty cannot be converted to mother share right?

Those are call-warrant.

>> call warrant/option are the only thing we had in malaysia...that's only if we expected the market to be the bullish...so..if bearish? we Koyak already...in u.s we have CALL and PUT warrant/option..we used PUT for the bearish market...

>> so.. don't invest in malaysia stock market...it's has no liquidity..no opportunity..

can i know how to convert warrant to mother?

Take the warrant, pay the price agreed, then get ordinary share.

---

Added on January 18, 2009, 2:22 pmWarrant is right to exercise an option to buy ordinary share under a pre-determined price in a pre-determined period of time. Eg 1 unit of warrant holder of YTLPOWER-WB can buy 1 YTLPOWER ordinary share with RM1.21 (where market price for ordinary share is around RM1.90).

This post has been edited by htt: Jan 18 2009, 02:22 PM

where to get the price 'agreed' and how to pay? tell my broker is it?

The "agreed" price is set when the warrant being issued time.

How to earn from warrant before expiry date? Let say, if I bought 10000 shares or warrant ABC at the price of 0.005.

After few weeks, let say if the price goes up to 0.008, can I sell it? The difference of buying and selling prices are my profit or loss? Works like normal share?

Thank you.

Yup for trading purpose work like normal share. Just that most trader like warrants as it provide more leverage on your investment.

gues what yesterday night i was researching on warrant what is warrant for more then 2 hour .

still can`t really understand much .....


but now this topic bring up . proud of lowyat.net !!!!!!!!!!!

lowyat .net member rock !!!!!!!!!!!!!!!




okokay back to topic .

there few thing i wanna know . cause i just start to invole my self in share ........ and buy on a a warrant .

reason buy warrant .

Fast response - so i can test the internet gateway .
Learn warrant - hehheheehe cause the most thing i dont know the most is warrant .
Tamak abitle - hehehehe tamak lu ....


ok now let see the problem .

i buy Sapcres-wa on the price 0.65

reason i buy this warrant the most volume .
second i estimate and it seem already in quite a low price and might earn alittle . estimated in chart .




Now Come To Question.

1.if the warrant is expire what i get ? the last price money ? or must change to mother share ?

2.if i change to mother share now ? i still need to pay the ordinary price now rite ?

so what happen to my warrant share ? how much i can change to warrant share ? i heard at least 1000 share mean 10 lot ??

3. hehehe tamak question will this warrant share stay hit up to 0.70 again thn i sale it to breakeven but hope can higher la , cause now is 0.50

1. Nothing, to convert or not is up to you, but no point to convert if the conversion price higher than ordinary share price.
2. No, pay the conversion price. Second part I can't get you.
3. No comment

1. When expire if u didn't convert, then u get peanut. Even when it's near to expiry date, if the exercise price + warrant price is much higher than the underlying mother share price, the warrant price most probably near to peanuts already.

2. U pay for the warrant price (which u already bought) + exercise price in exchange for the mother share. It may takes a few weeks for the conversion process.

3. Yup i believe it can....U wait la Orang tamak selalu rugi.

hheheheh i sold d dont tamak d hehehehehe so now lucky not lossing much ..

Another question on CW.
1. Does they always peg to the mother share price? (At least parellel where mother share goes down, CW goes down and vise versa?)
2. Does CW ever goes broke (PN17) if the mother share is still around?
3. When near expiry period, I heard CW always drops to make sure you lose out when want to convert to mother share (how true is it?)
Thanks in advance.

---

Added on January 24, 2009, 11:20 pmAnother thing,
4. Does CW get any dividends?

This post has been edited by AzerothJr: Jan 24 2009, 11:20 PM

1. Most of the time... but it doesn't mean that whenever the mother share rises, CW must follow
2. I think CW will only expired
3. I think u mean the mother share price dropped? another thing is CW is always cash settled, so most of the time u cant convert it to mother share.....
4. Nup, u wont get any dividend frm CW

You think warrant as an independent counter influenced by its mother share with some restrictions.

How to check the warrant expiry date ? Eg: Ramunia-Wa

i newbie...
is it can buy warrant instead of buy the mother share 1st?
is it warrant can buy only if i buy their mother share? mean warrant attach v mother share?

nope nope .....

you can straighly buy warrant without buying it mother share ...

oic...then which should i start 1st? not the company i mean here
is procedure...n i would like to buy thru online share trading via pbb... how? sifu help me

In RHBInvest platform, when you click on warrants details link...
you can see all the warrants information such as premium, expiring date, gearing, exercise price and etc..
Usually other online trading platform should provide such informations.
Otherwise, you can search in KLSE website itself. Look for warrants section.

any1 here help me?

not sure what is your question. what you mean by which to start first? maybe you should elaborate your question further.
You can use pbb for trading as long as it provide facilities for you to trade.
Once your account funded, you can start trading d.

oic...is it i straight away open a online share trading acc then funding into it then can start purchase warrant?

Yup, it is. But becareful when trading, choose correct counters /warrants to trade from.
For beginner, it is adviseable to buy stocks first then warrants.
Warrants is high risks instrument to trade for...

but bro, i know trading share is risk even stock....
but warrant much cheaper than ordinary share..like PBB warrant.... only 0.02
warrant have maturity date right? after the day, the warrant is it useless?

This post has been edited by subrok007: Feb 5 2009, 08:15 PM

That's expire date to be exact. After that can use as toilet paper, if you have the script with you.
If you are new, my advice is not to touch warrant first
Just my 2 cents.

ok thanks for the advise

Can anyone give me a detailed example on how warrant works? lets say, PBB stock price is 9.05, if i trade warrant, what is the price i can get for PBB and how long is the holding period? How can i determine the profit or loss? Is this same with option trading?

First of all, warrant has no close relationship with its mother share. PBBANK-CH is at 0.025 as of today.

Just treat the warrant counter as a normal and trade as usual with some restriction. To profit, you must sell higher than the price you bought before the expiry date. Just the breakeven calcuator to determine what is your best selling price determined by your buying price and number of shares you hold.

Warrant counter may be influenced by its mother share price. However, it may also react based on the speculation and news about the mothershare.

For example, RAMUNIA-WA is actively traded this week compared to its mother share, RAMNUNIA expect for today (especially in the 2nd half).

This post has been edited by David83: Feb 6 2009, 09:37 PM

The two are totally exclusive, mean you can buy either one of them without restriction.

You can also buy both of them if you have cash.

My little girl also gives me a very simple proposal, buy up all the numbers ( 10,000 numbers ) in the ekor, you sure strike one


Just buying Both 2 ekors could also completely out. Buy 10,000 counters could be bad if Dow collapses ( touch wood ).

The bottom line, not so easy lah.

Rule No. One, do not start with warrants if you are new, unless you want to be the graduate of the HARD KNOCK UNIVERSITY , by paying the right price.

This post has been edited by SKY 1809: Feb 7 2009, 04:51 PM

Just trade it like a normal stock. Profit or loss can be determined by your Selling Price - Buying Price, same like stock. For warrant price & expiry date, u can refer to bursa website or any newspaper.

But for beginner, its advisable not to touch warrant especially call-warrant (warrant issued by financial institution, Cx) because of the short expiry date. If u insist, try company issued warrant (Wx) which has longer expiry date. Remember for warrant, the expiry date is very important, it influence the warrant price too.

Bros,

Let us share a bit about 2 cents Remisiers/traders wan sik kachang bout warrants.

Warrants / Call Warrants is fall into deveriatives category. Means it bears highest risk in investment term. Same category with Futures/Options.

Why? Bcoz the concept of 'leveraging'.

Warrant is a paper/loan issued by the Own Mother/Listed Company Company itself.
It want to raise money to fund something ie a project ...
Why they use warrant instead of loan?
They issue warrant without commitment on paying interest rate compare of borrowing corporate loan/bridge loan.

And when it expires, they dont pay u money, u just convert it to mother share.
Swap to REAL SHARE.

In easy sentence, they sell u a paper which they borrow your money to use for 10years for company expansion without paying interest to you.

Warrant lifetime is long normally 5 years to 10 years expiry.

Call Warrant is issued by 3rd party - Commercial Bank or Investment Bank.
The tenure is much shorter, normally 6 months to 12 months. (expire in 1 year or less)

Its a medium for Banks to make quick money.
(How i explain next time, too long )

i.e Bank A call warrant A for YTLPower

The name will be YTLPower-CA

e.g. 100million shares
1.00 per 1000 shares
american style
exercise ratio 1: 1
exercise price 0.80
duration to expiry 10 years = 2019


U buy 100k shares at 1.0 = cost is RM100k
american style - can convert anytime to cash settlement before expiry

assume , mother share ytlp is 1.8 = so is in the money

why ?

u need 1k CW to get 1 mother share upon expiry.
ur RM1 + exercise price 0.8 = RM1.80 (mother share)

bcoz of the LEVERAGING concept and i believe YTLP can go higher, ill trade the CA instead of mother share.

make another e.g

if YTLP go from RM1.8 to RM2 = RM0.20 profit (11.1% again - we ignore the brokerage, give me a handicap point ok)

what is the theoritically increase price for the CA ?

1.00+ 11.1% ? =1.11 ? Wrong

is 1 + 0.2 = 1.2 (20% profit)

How about is the mother price go down from 1.8 to 0.6
it will be -0.2 , but call warrant max is 0 = what u invest is what u loss, thats why ur paper is toilet paper ...

call means go up , put means go down .

*the numbers above is exclusive of gearing / delta value / implied volatility .... which u need to factored in to goreng a CA or Warrant.

simplyfied it for readers friendly ...

happy trading

---

Added on February 12, 2009, 3:59 pmBros,

Forget to say , for newbie ... dun try Call Warrant .
Try stocks 1st ...

Bcoz of the leveraging, u must know what u r buying/duin ....
thats why for Call warrant, we dun invest instead we trade...

Thanks

This post has been edited by mikenji: Feb 12 2009, 10:38 PM

Lets differentiate from local company warrant (company warrant) than foreign warrant eg: Petrochina (issued by investment bank like CIMB/OSK) and others. I advise all traders and investors NOT to touch these foreign warrant because the brokers are always trying to push down the price despite the share raising. Not only market is against you but the broker is against you.

Example, Petrochina raise 5% in NYSE but warrant in KLSE moving up 0.5% or 1%. When it goes sideline, the broker PUSH the price down with 1 lot done transaction. When it goes down in NYSE, the broker PUSH DOWN AGAIN with 1 lot done transaction.

90% brokers call 10% your call.

for foreign CW , need to factored in the implied volatility (very significant for foreign CW) and the currency instability (exchange rate).

Got some questions about warrants here.

1) How much does it cost to convert the warrants? (Not the exercise price but the fee for the paperwork+service etc.)

2) How long does it take to convert the warrants? Lets say tmr 13/05/09 I submit everything complete, when will I see the mother share in my CDS? (I heard it was something like 2 weeks, not sure)

Im still new in this stuff, sifus please help and advice. Thanks

1. around RM20.

2.Two to three weeks,check with the Registrar.

Thanks.

RM20 is per transaction? So lets say i convert 20 lots in 1 transaction, its RM20? I hope its not RM20 per lot.

Fee is per transaction.

If your account is Nominee account,you will also have to pay the broker for the paper work.the amount varies from one broker to another.Just instruct the broker to do it on your behalf.

If your account is direct,just DIY,very simple,fill up the conversion form which can be obtained from the Registrar or Company's website,attach the requisite remittance by way of bank draft and send it to the Registrar.

Thx thx. im using nominee, so i guess got extra charges again.

since warrant is near to useless or is totally useless when expire due to WA price + exercise = more than mother share price, which make it not worth it to change it to mother share..

then who will want to convert the warrant to mother share wor?

Not all warrants will expire worthless.Many reason for people to exercise and convert to mother share.

One example is those sophisticated players who arbitrage by selling the mother share and buy the warrant for conversion when the warrant is in the money.

It's nice to invest in warrants and the returns are great but of course the RISK are big. I feel with a good understanding in warrants and thorough analyzing, the risk can be reduced greatly and the potential profit is HUGE.

Therefore, I would like you guys to suggest all the warrants bought and the reason for buying so that we can analyze the potential to analyze and make $$$ together.

For starter, my portfolio consists of RESORTS-CI and RESORTS-CJ.

Anyone to recommend other warrants?

Well I just bought some PBB-CJ at 0.34. Its expiry is in 09/2010 and I plan to keep it till then. I didn't really analyze much on PBB, just saw its PE at 8.XX which is kinda low I think. If PBB can hover above RM9 by mid-2010, Im happy liao.

I'm pretty bullish on RESORTS... For short term, I bet on RESORTS-CI while I plan to keep RESORTS-CJ for long term... The bad news now is the H1N1 in Malaysia causes the RESORTS share to drop suddenly.

If no widespread of the H1N1 in Malaysia, my target is RESORTS share should be able to reach RM2.80 to RM3.00 within the next 6 months.

How about TM-CI ? Do you guys think it is potential ?

RESORTS-CH, CI, CJ doesn't move a lot these days. I'm been forced to hold my shares in that.

Are you happy now??? Resorts-CI at 0.115!!!

---

Added on May 25, 2009, 2:37 amTM-CI at 0.12 when the share price was at 2.94 is good but since now the price drop to 3.76, meaning TM-CI should drop further before buying.
By the way, it seems after the capital return exercise for TM, the warrants strike price will also be adjusted and I've made a calculation that TM-CI will be overpriced after that.

I recommend HOLD for the time being.

---

Added on May 25, 2009, 2:41 amAfter thorough analyzing PBB-CJ, it is a REAL deal. At RM0.35 now with the mother share around RM8.60, the warrant is really a bargain. I'm going to accumulate this warrant for long term.

The gearing is around 5 to 6 and the premium is only 3.5%.. Cheap cheap cheap!!!!

Thanks for sharing...

This post has been edited by ancs88: May 25 2009, 02:41 AM

Take an example of this warrant.
If i would to convert it to ordinary share, given the conversion rate = 4:1, current warant price = 0.07, mother share = 2.24, Ex Px. = 2.18,

meaning 2.18 + 0.07 x 4 = 2.46.

that means the conversion is higher than the mother share by = 2.24 - 2.46 = -0.22?
If this the case, better not to convert?

Correct me if im wrong.


Attached thumbnail(s)

thanks you for sharing,
that's definitely give me the big picture of a call warrant...

how about normal warrant by the ocmpany then??

Actually it is the same.. Just that warrant from the own company have longer period
The rest.. depends on the warrant profile that you can find out in the announcement..

Anyone know which broker provide service for NYSE warrants?

I fully agreed. For newbie, do not touch warrant. I have been trading for 4 years, I trade mother stock. Until now, I also don't dare to trade warrant because it is very risky.

I googled the word "warrant and mothershare" and it directed me to this page..

bro..read the stock exchange LYN faq thread..nice one yo

This post has been edited by pear6869: Jul 6 2011, 08:57 PM

Can I still convert my warrant to mother share after the expiry date?

No lah. If you have intimate knowledge on call warrant, it is safer and more lucrative. Eg. DRBHCOM-CI from 2 sen to 23 sen in less than a month (Gain more than 1000% !!!).

This post has been edited by tikusniaga: Feb 5 2012, 07:29 PM

Agreed. I just bought DIGISTA WA last week and it already gain >10%

no

Thanks.

Another question,

What exactly gearing means?

It says here

Gearing = Underlying Price/(Warrant Price x Exercise Ratio)

What can I conclude from the gearing value?

Same thing for cash settlement.. what does it tell for a certain warrant?

Gearing calculates the level of the leverage of the son against the mom.
Cash settlement normally for call warrants.

Is the exercise price fix or keep changing?

exercise price is fixed

how to check warrant expiry date at itrade cimb?

What is the formula used to convert warrant or call warrant to mother share ?

Thanks.

hi.
I got some question on warrant conversion.. can anyone pls shed some light to me..

for an example if I hv bought ifcamsc-wa 10000 unit, at the price of RM0.765..
coversion ratio is 1 to 1
exercise price is rm0.10..
expired date: february of 2016

lets assume by in 2015 1st of February,
mother share =rm1.00,
while warrant =rm0.850

after conversion, I will get 100,00 mother share of value RM0.865 as 0.765+0.10=0.865..
so lets ASSUME that if I sell at that day at rm 1(I know it’s impossible tat selling day=conversion day),I will get profit of RM1350 as
RM1x10000-RM0.865x10000=RM1350?

many thanks