Bursa-CL Warrant Potential To Generate Profit
Warrants are generally bull market tools. In a bear market, however, warrants tend to drop faster than mother share. By the same token, when there is a price rebound, warrants tend to jump quicker than the mother share. So if investor believes in Bursa's upside, he/she could look at buying its warrant - Bursa-CL
Bursa-CL is launched in Dec 2008 expect at 9 June 2010 with ratio 5:1 exercise price RM5. The warrant which ended at 45.5 sen last Friday, carries a value of RM7.275 = (0.455x5+RM5). The mother share finished at RM7 last Friday.
Now in short term the KLCI will have a correction and may drop a bit below 1,000 in coming next month and by next year 2010 economic will sure get improve compare this year so Bursa sure will moving up and Bursa-CL will bounds more higher.
Bursa-CL which was issued at 24.5 sen, dipped to a low of 8.5 sen on March 16 before rebounding to 54 sen on May 12. This means it jumped 535% over these two months. Next run of Bursa will be a good opportunity to make profit by warrant.
Target Price from research house:-
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Bursa-CL is launched in Dec 2008 expect at 9 June 2010 with ratio 5:1 exercise price RM5. The warrant which ended at 45.5 sen last Friday, carries a value of RM7.275 = (0.455x5+RM5). The mother share finished at RM7 last Friday.
Now in short term the KLCI will have a correction and may drop a bit below 1,000 in coming next month and by next year 2010 economic will sure get improve compare this year so Bursa sure will moving up and Bursa-CL will bounds more higher.
Bursa-CL which was issued at 24.5 sen, dipped to a low of 8.5 sen on March 16 before rebounding to 54 sen on May 12. This means it jumped 535% over these two months. Next run of Bursa will be a good opportunity to make profit by warrant.
Target Price from research house:-
- AmResearch raised its fair Bursa value to RM8.40 from RM6.20 so Bursa-CL will be 68 sen
- Kenanga Research upped its target price to RM9.30 from RM5.10 so Bursa-CL will be 86 sen
- CIMB raised its target price Bursa value to RM8.00 from RM7.50 so Bursa-CL will be 60 sen
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3 comments:
You are rite. Many people forgotten about warrants already. The 3 months rally have failed to bring forth warrants not like previous years. But the returns are very much high compare to mother share. But please note that warrants have expiration date. PLEASE DO NOT PLAY WARRANTS LESS THAN A YEAR TO EXPIRATION. You could loss you arm and leg. No joke. Unless 'in the money', market is in bull, and you can buy warrant convert to mother shares.
On other note, i think market is dip very soon. We can hear alot of NEGATIF news oledi from market. BEST TO STAY SIDELINE, be patient....plenty of cheap stock BEGGING for you to pick up later. Crude oil may test USD50perbarrel again, i look at it. KNM also got 'sell' recommendation coz new order actually thinning(okay, actually 'nil' new order,very very bad situation). Current market best leave to traders...
I agree to you that buy warrants than still had about 1 year to expire.
Warrants is a high risk high profit or loss in share, the warrants when come to expire date the value some time will equal to zero like KNM-CA.
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