The warrant of soon to expire Silver Bird Group Berhad (SILVER-WA) has been hovering between 3 to 6 sen over the least 30 days.  As the warrant is expiring on 19^th September 2010 and the exercise price is so close to the current share price, SILVER-WA speculative appeal is quite strong especially when the company announced that it will encourage the company’s warrants holders to exercise their warrants as a possible solution to its public shareholding spread requirement.

According to Silver Bird’s announcement on 30^th June 2010, the percentage of the company’s public shareholding spread is 20.20%.  This is below Bursa Malaysia requirement of minimum 25% public shareholding spread.  To fulfill the shareholding requirement, Silver Bird has announced that it plan to explore the following actions:

The share price performance of Macao casino operator Wynn Macao Limited, which made its debut in Hong Kong Stock Exchange last October, has been spectacular.  The price of Wynn is now 22% higher than the closing price of its first day of HKD10.78.  

WYNN-C1 is a structured call warrant issued by CIMB last year on the first day the underlying share got listed.  WYNN-C1 closed at 25 sen on 9^th October 2009, the day it first listed.  The warrant was then traded at a whopping implied volatility of 118% and a premium of 35.6%.

Had an investor bought into WYNN-C1 when it was first traded, there was no chance he could have made any money unless he disposed the warrant on the same day.  Investors of the underlying share also went through a rough patch when Wynn traded as low as HKD8.67 in late October last year.  Nevertheless, the share managed to pick itself up following better than expected earnings and is up 39% in 2010 as Macao gambling business enjoyed strong growth this year in the absence of any new supply (of casinos).