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Comparing GLD-C1 with GLD Call Option |
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Written by Alan Voon
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Sunday, 05 July 2009 17:09 |
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Bursa Malaysia will soon witness the listing of commodity ETF call warrants. OSK Investment Bank last wee issued two call warrants whose underlying shares are SPDR Gold ETF (GLD-C1) and United States Oil Fund (USO-C1).
GLD is an Exchange Traded Fund listed in US. It is also concurrently listed in Hong Kong, Singapore and Tokyo. As GLD is also an optionable share in U.S., knowing if GLD-C1 is fairly valued is not difficult. The following are the prices and indicators of GLD-C1 after adjusting for a relatively hefty exercise ratio of 400.
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PMIND Proposed Par Value Reduction means Lower Exercie Price for PMIND-WA |
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Written by Alan Voon
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Saturday, 20 June 2009 12:58 |
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The exercise price of PMIND-WA may be lowered again after the company proposed par value reduction. On 8 June 2009, Pan Malaysian Industries Berhad (PMIND) announced a par value reduction from 10 sen to 5 sen. Under the proposal, PMIND existing issued and paid-up share capital of RM123,966,211 comprising 1,239,662,112 ordinary shares of RM0.10 each will be reduced pursuant to Section 64(1) of the Act to RM61,983,106 comprising 1,239,662,112 ordinary shares of RM0.05 each, by way of cancellation of RM0.05 of the par value of each existing ordinary share of RM0.10 each of PMIND in issue.
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Last Updated on Wednesday, 02 September 2009 23:25 |
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Kurnia Privatization Offers No Premium for KURNIA-WA |
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Written by Alan Voon
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Saturday, 20 June 2009 12:15 |
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Kurnia-WA holders are the latest victims of a takeover/privatization offer that severely undervalued the warrants. The major shareholder of Kurnia Setia, Kreatif Selaras Sdn Bhd made an offer to acquire the entire business and undertaking of all assets and liabilities of Kurnia Setia at a an offer price of RM2.40 on June 4, 2009. Kreatif Selaras at the same time offer RM0.90 per Kurnia-WA. As the exercise price of Kurnia-WA is RM1.50, there is no premium in the takeover offer for a warrant that does not expire until 2018.
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YSPSAH Warrants to Enjoy Lower Exercise Price |
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Written by Alan Voon
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Saturday, 20 June 2009 12:42 |
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Warrant Price
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RM0.195
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Share Price
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RM1.190 |
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Exercise Price
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RM1.480 |
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Warrant Expiry Date
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5/12/2012 |
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Premium
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41% |
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Gearing
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6.1 |
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Underlying Historical Volatility
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36% |
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Warrant Implied Volatility
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39% |
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Delta
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0.58 |
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Effective Gearing
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3.5 |
The Exercise Price of YSPSAH-WA is going to be lowered following the company's implementation of a two-call rights issue soon. The company shareholders had approved the rights issue at an EGM held on Friday 19 June 2009.
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Century Logistic Undertakes Rights Issue of Warrants |
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Written by Alan Voon
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Wednesday, 19 August 2009 00:33 |
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Century Logistics Holdings Berhad is issuing another batch of 3-year warrants more than a year after its last batch of warrants (Century-WA) expired in-the-money. In an announcement to Bursa Malaysia on 19 March 2009, the company proposed a rights issue of up to 46.96 million warrants to shareholders on a one for two basis at an indicative price of 5 sen.
This company seems to prefer shorter term company warrants of only three years as opposed to the more common five or ten years. This may be due to the company's strong earnings as released to the Exchange on the same days. If a company has high growth rates, it makes sense to issue shorter tenure warrants because the warrants will be too deep in-the-money if the share price also experience strong growth.
19 August 2009
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Last Updated on Wednesday, 02 September 2009 22:30 |
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Page 29 of 32 |
