Latest Posts By settowin
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| 27-Mar-2012 11:22 |
Others
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Are Structured warrants worth playing?
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Hello, good morning, everyone huat arh! Since the market is so quiet in Singapore, despite the bullishness, I want to share with those who are anxious about entering the warrant market. Lets briefly differentiate between company warrants and structured warrants. Every1 knows what is co warr, but many still wonder what are structured warrants. So lets first describe them in simple terms. 1. Company warrants: These are given and issued by the companies themselves and are mostly free of charge. FREE, yes, for they normally come with some form of offers such as rights issues with warrants, or bonus issues with warrants. You get them absolutely free. After getting them you can trade it when they are listed, or you can subscribe for the share at some point of time before expiration dates. Once the date of expiration lapses, they are useless and you can only adorn them in your bedroom, that's all. So if you get a company warrants, you are lucky to get free things, and if the mother shares spike, you will make money by selling off the warrants or exercise the warrants at the STRIKE PRICE stated when the warrants were issued. For those who bought warrants, in the hope of the mother share spiking, they stand to leverage from the CHEAP price of the warrants, but their risk of losing is if there are no market play and the strike price is higher than the mother share's traded price. This situation also will send your warrant papers to the bedroom walls. 2. Structured Warrants: These are created by some institutions approved by the " authority" to issue structured warrants (virtual warrants). They could be warrants of Hang Seng Index, Straits Times Index and some listed company names (The company has nothing to do with the warrants even though the warrants may carry the first name of the company, eg. Structured Biosensor Warrs, Kepple Warrs, etc. These structured warrants will also have an expiry date and an Strike price. These str warrs are not issued to you for free. If you want to trade them, you will have to buy from the market. Structured warrants come with Puts and Calls. A put warrant is the opposite of the call warrant. A structured call warrant is a positive (yang) to the up direction of the market, while the structured put warrants is the negative (ying) down direction of the market bet. Structured warrant pricing: Normally, the warrant prices are not the straight forward price you are paying. The institutions always place a ratio of exchange which an investor off-hand would not know unless he searched around. The ratio is the amount of warrants you buy divided by the ratio. For example if the ratio is 3 to 1 share (Share means the instrument, eg one share of Biosensors), then your warrants is worth one-third of a share of the instrument. The ratio is a covert thing which is very crude way of doing things. It is a dark side to me. Say if you pay 10 cents per warrant on 12 lots (12,000 warrants), you are actually paying to get 4 lots of the virtual (not physical) instrument (12/3),. Some ratios are higher than 3:1, especially in big tickets, they are higher. STI Warr are 2500 warr to 1 share, and HSI 1000 warr to 1 share. With Structured warrants, you don't get to exercise to get the stocks or instrument. It is actually pure gambling. On expiry date, if the call warrant's strike price is higer than the market price of the underlying instrument, you get washed out. If it is lower than the market price, the institution will pay you based on the calculation and ratio of exchange. For structured put warrants, it works the opposite way. If the market price is lower than the strike price, the institution will pay you according to the ratio stated, and if the market price is higher than you get washed out. After doing some calculations, I found that Structured warrants are overly too costly since the issue build a base price to profit in any market conditions. Do some mathematics and you should know what I mean. But structured warrants for gambling is very fast, since the market makers just like to push up to get more money from the players. The institutions mostly issue 80 million warrants per issue. I guess they make per issue no matter what market conditions, more than 20 million bucks if my maths is correct. So before you buy warrants, know what warrants you are into. Cheers. |
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| 27-Mar-2012 08:37 |
HLH
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HLH
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I remember that not too long ago, I bought this bugger for a trial play play at 4.5 cents the highest after I bought, Lol. But on average after half 1.2 cents rights and extra subscription, should be around 1.8 cents. | ||||
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| 27-Mar-2012 08:33 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Then what? It is just an institution taking a disciplinary action on a ill-conceived remark by its ward. Justified or not, no one should be intimidated by an action taken by any benefactor against the beneficiary. It has nothing to do with restriction of free speech, as many people would like to interpret. I think people can still speak their minds on any issue that do not encrouch on feelings of the masses, lol.
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| 26-Mar-2012 16:08 |
Genting Sing
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GenSp starts to move up again
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Next station should be $1.80, just wait for profit taking to complete. I think today is best time to buy on dip. Don't wait until $1.80 then buy as missing 6 to 8 cents is actually a big deal. Huat arh... | ||||
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| 26-Mar-2012 15:47 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Honestly why and what for are we waiting now? Time to enter the market, and let DOW carry us upwards tonight and we all will huat tomorrow. Cheers. | ||||
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| 26-Mar-2012 15:41 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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I tend to agree with sifu Isolator that exiting a trade requires craftmanship (art). In fact entering a trade is an art too. If you don't know how, you stand to lose profits and sometimes big losses. | ||||
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| 26-Mar-2012 11:10 |
HLH
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HLH
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Many people would break even only at around 3 to 3.5 cents, so the possibility is huge, about 50% upside to 55% from now. I am long too. | ||||
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| 23-Mar-2012 15:46 |
YZJ Shipbldg SGD
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Cruising with the ship ..Yangzijiang
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Accumulation (after distribution) should be near completion. Think next week, coming Monday will moving up again and if DOW is up tonite, very good chance for it to move back above $1.40. |
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| 21-Mar-2012 19:52 |
PSC Corporation
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Will PSC Corp pays you 35 cents if it closes down?
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True, true. Super Group was so dulan that it chucked all the few hundred million shares back at the director who passed to the wife. If sold on the market, then leow lian loh. PSC corp price could be battered even more severely. Don't know what was going on, internal politics before. Now seems quieter with only one strongman and a few good followers, lol. Not much news coming out.
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| 21-Mar-2012 16:59 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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OK, refreshed. Past performances usually would not guarantee future occurences. | ||||
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| 21-Mar-2012 16:56 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Yes, during those day we saw when visiting the stockbroking company, they used a white board and a marker to write the prices.
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| 21-Mar-2012 16:51 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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If not mistaken nearly 4,000 points.
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| 21-Mar-2012 16:49 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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I think it was in the nineteen nineties, before market collapsed after Mahatir declare SGX's CLOB listings illegal. Can't really remember too well as many years already, was quite young then, and used to see people using teletex to play shares.
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| 21-Mar-2012 16:42 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Hey, choi choi choi. Real one. You will note your screen shows you nick but not your user name. Someone who happen to sit at your desk can see the postings but not knowing it was you, eg. monk999, hahaha.
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| 21-Mar-2012 16:34 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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My friend used my computer to say that, hahaha, no TPL style, but my friend did not know my nick until the posting appers, LOL.
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| 21-Mar-2012 16:24 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Hah? 4,000? Are your sure? Impossible. | ||||
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| 21-Mar-2012 16:22 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Can't even rule out that the next high will be 4K, man.
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| 21-Mar-2012 16:06 |
Straits Times Index
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STI to cross 3000 boosted by long-term investors
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Your charts wrong. Advisable throw away lah, hahaha. STI refused to relent and moves up again above the 3000 this moment. Next moment I keep secret, hahahaha.
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| 21-Mar-2012 15:57 |
HanKore Env
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BIO-TREAT TECHNOLOGY LIMITED
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Too many shares floating, thus very hard to move up in the absence of announcements of good news. Naturally when co. like Hancore had complete turnover of old management to new, there will be teething problems for new managers and coos and ceos, eds and so forth. Only independant directors don't grow grey hair, they shake their legs and get paid effortlessly. This applies to all listed companies where cronies of big connections are seconded to be grand of dukes.
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| 21-Mar-2012 15:34 |
PSC Corporation
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Will PSC Corp pays you 35 cents if it closes down?
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Hi Mr. Chinton, The counter has underperformed for so long, think if not mistaken 3 or 4 years already, though every year it tried its best to make money and did so. But the share price is dismal. I think this open the way for me to think that there are two paths the company or its controlling director will take: 1. Offer to buy back all the shares at betweeen 30 to 40 cents although currently the market is 20 cents last done. If buying at market price of 20 cents will create hue and cry because it won't seem fair compared with the reported NTA per share. Thus there will be problem if no premium above market done price is given, so that's why I think 30 to 40 cents to shut the mouths of many big stakeholders. 2. Use company extra idle cash to buy shares from the open market since it is less than half price. The purchase will be recorded as treasury shares, and the company could cancel them or distribute them as dividends in the forthcoming years. The reasons for my analysis is that the shares being low priced is shattering the confidence of many people in PSC and many shareholders. They will sure make so much noises that more directors have to resign if they could not take the rap for inefficiency reflected by share prices in the market. 20 cents....lol.
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