GREG - ERI

Rock · 1 GREG - ERI Thu Apr 28, 2011 4:34 pm

Rock

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whats gonna happen to GREG - maraka wala?

anyone got any idea about this share/company?? no one i knw has any idea!! i am asking as i think the warrant conversion is closing by so technically if the share is worth then the conversion should attract the share to rise....(Depends on how investors react)

StocksWatch · 2 Re: GREG - ERI Fri Apr 29, 2011 1:45 am

StocksWatch

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Be careful with this. The company has announced that 2011 warrants will cease to trade from 13th May 2011. That may be why we saw a fall in price of 2011 warrants today. See announcement below.

http://www.cse.lk/cmt/upload_cse_announcements/3111303990775_.pdf

Slstock · 3 Re: GREG - ERI Fri Apr 29, 2011 1:57 am

Slstock

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Rock wrote:whats gonna happen to GREG - maraka wala?

anyone got any idea about this share/company?? no one i knw has any idea!! i am asking as i think the warrant conversion is closing by so technically if the share is worth then the conversion should attract the share to rise....(Depends on how investors react)

This can go 3 ways,
a) GREG share is raise ( somehow) so the warrants become attaractive
b) Warrant price come down to adjust the difference with the current Greg price
c) GREG can go up a bit and warrant can come down to meet in the middle for fair value
d) Greg.N can come down too with Warrant price

Becareful as it can go anyway. I really hope investors don;t get burned again

tubal · 4 Re: GREG - ERI Fri Apr 29, 2011 7:39 am

tubal

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slstock wrote:

This can go 3 ways,
a) GREG share is raise ( somehow) so the warrants become attaractive
b) Warrant price come down to adjust the difference with the current Greg price
c) GREG can go up a bit and warrant can come down to meet in the middle for fair value
d) Greg.N can come down too with Warrant price

Becareful as it can go anyway. I really hope investors don;t get burned again

With all other warrants converted recently the pattern has been b above. The only exception i noticed was with CLND but I think many people learnt their lessons from that. So watch out for the warrants to shed about 30-40 rupees.

And if buy some chance they start pushing GREG.N retailers should ask themselves why they want to buy into a share that's being pushed up solely to facilitate warrant conversion. Remember folks when warrants are converted it's going to lead to EPS dilution. And GREG is at rediculous PER anyway.

dissanayake.asela · 5 GREG - ERI Fri Apr 29, 2011 10:45 am

dissanayake.asela

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Can someone explain me how will effect to GREG W1, W2, W3, W6 Separately ?

Thank you

thusit · 6 GREG WARRENT CONVERTION Fri Apr 29, 2011 1:12 pm

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Exercising a warrant means paying the subscription (exercise) price to convert your warrants into shares
2011 Warrant is GREG.w0001
so
IF market price of share is 75
exercise price is 24
warrant market price is 60

so Intrinsic value is 75-24 = 51
to buy warrant you have to pay 60
that mean you lost 60-51 = 9/= Rs when you going to exercise warrant in to share
so it is worthy buy normal share from the market which is 75/= Rs

StocksWatch · 7 Re: GREG - ERI Fri Apr 29, 2011 1:20 pm

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thusit wrote:Exercising a warrant means paying the subscription (exercise) price to convert your warrants into shares
2011 Warrant is GREG.w0001
so
IF market price of share is 75
exercise price is 24
warrant market price is 60

so Intrinsic value is 75-24 = 51
to buy warrant you have to pay 60
that mean you lost 60-51 = 9/= Rs when you going to exercise warrant in to share
so it is worthy buy normal share from the market which is 75/= Rs

I think the question should be is it worth buying 2011 warrants at SLR 60 rather than ordinary shares at SLR 75.

However, as Tubal pointed out above, once the warrants convertion takes place, there is a possibility for the ordinary share price to fall as the Company's earning will get dilluted due to increase in the number of shares.

If someone has already bought 2011 warrants, then he got to consider his cost plus exercise price of SLR 24 to arrive at a decision whether the convertion is a worthy option.