Warrant trading opportunity

Jana · 1 Warrant trading opportunity Sun Nov 03, 2013 6:42 pm

Jana

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Warrant era again on the way.
mostly the JKH warrant giving a good sign to push up other warrants again in the market.

"Big demand for additionals on JKH rights issue"
http://forum.srilankaequity.com/t31466-big-demand-for-additionals-on-jkh-rights-issue#185417

So when the JKH warrants start trading it should be trade more than 50/= or 60/= (rights traded @ 70/=)
anyhow JKH move further up as well so it will give a chance to trade with JKH.W.

then most of the warrants follow with that ...
still we can have chance with
GREG.W6
CLPL.W13 and W14
REEF.W19

smallville · 2 Re: Warrant trading opportunity Sun Nov 03, 2013 6:54 pm

smallville

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I think you have a point there..

When JKH warrants starts trading, it can bring the attraction for warrants as a whole. Then other warrants can also get the attention they need. This is not certain, only a possibility.

We, at the moment cannot quote a target for JKH. Its already overvalued.... but its JKH.. It doesn't need NAV, EPS to go up. Its the centre of attraction in foreign eye.

As per the charts, breaking 25 barrier is healthy too.. so its just a matter of time that JKH hits 300 in coming months.

But will all this interest be in vain if the Casino project have to be called off????

Last edited by smallville on Sun Nov 03, 2013 7:39 pm; edited 2 times in total

hello · 3 Re: Warrant trading opportunity Sun Nov 03, 2013 7:13 pm

hello

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@jana
why you didn't mention GREG.W3 ? Shocked

good to buy @0.60 and sell @1.00

and

Stock-----price-----EXERCISE PRICE

CLPL.N------69.00

CLPL.W13----1.50------118.00

CLPL.W14----2.10------142.00

how come CLPL.W14 trading higher than CLPL.W13. no value both warrant if we check with today price CLPL.N

@Smallville! well said
When JKH warrants starts trading, it can bring the attraction for warrants as a whole. Then other warrants can also get the attention they need. This is not certain, only a possibility.

if JKH.W trade under 40/= I will go with that. when will start JKH w

dhanurrox · 4 Re: Warrant trading opportunity Sun Nov 03, 2013 7:50 pm

dhanurrox

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hello wrote:@jana
why you didn't mention GREG.W3 ? good to buy @0.60 and sell @1.00

and

Stock-----price-----EXERCISE PRICE

CLPL.N------69.00

CLPL.W13----1.50------118.00

CLPL.W14----2.10------142.00

how come CLPL.W14 trading higher than CLPL.W13. no value both warrant if we check with today price CLPL.N

@Smallville! well said
When JKH warrants starts trading, it can bring the attraction for warrants as a whole. Then other warrants can also get the attention they need. This is not certain, only a possibility.

if JKH.W trade under 40/= I will go with that. when will start JKH w

CLPL.W14 and CLPL.W13 expire dates are different.You can't just compare conversion prices. Very Happy

smallville · 5 Re: Warrant trading opportunity Sun Nov 03, 2013 8:34 pm

smallville

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hello wrote:

how come CLPL.W14 trading higher than CLPL.W13. no value both warrant if we check with today price CLPL.N

@Smallville! well said
When JKH warrants starts trading, it can bring the attraction for warrants as a whole. Then other warrants can also get the attention they need. This is not certain, only a possibility.

if JKH.W trade under 40/= I will go with that. when will start JKH w

CLPL.W14's expiration date is long, that's why its trading a bit above..

But you're correct.. As for the prices we see on N shares, none of the Warrants qualify for an investment. But they also bring trading opportunities for some who would like to try out.. Mind u, correct entry only make u a winner, others will see their avg falling down and profits fall low on an uptrend Wink

JKH is a powerful share, we're yet to realize it..

hariesha · 6 Re: Warrant trading opportunity Mon Nov 04, 2013 9:52 am

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The difference JKH warrants and other warrants is that JKH warrants will be the only warrants which are "in money".

As at today's JKH price JKH warrant 1 have an intrinsic value of Rs.40/- and warrant 2 have an intrinsic value of Rs.30/-. All other warrant's intrinsic value is negative @ a huge margin (More than 50%).

I think to make any sense on other warrants, JKH warrants should trade above 100/-.

smallville · 7 Re: Warrant trading opportunity Mon Nov 04, 2013 2:25 pm

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The best hope with JKH share is, that it has attraction from many parties. So its warrants valued than any other warrant at the moment.

The first warrant trading day we can see alot of trading Wink

Ppl who got this for free by paying for rights conversion would look at covering a portion of rights prices too...
In warrant 1s case, for an investor, he/she has to pay 175*300=52500 to be eligible for 100 warrants. And also that person needs to have around 1950 N shares to get that rights amt.

A warrant-1 bought at 100/- carries a conversion value of 285/- in 2015. If by 2015, JKH reaches 600-700, we never know as JKH can announce another share split too. This, while making the warrant conversion a fruitful even after a share split, would also bring down the super profits that one could've earned with warrants.
Then if someone buys warrants in 2015, how much it can value? Hmmm... time will tells us Wink

For example, when REEF trading at 70-80 range, REEF.W19 was trading around 16-22. Then it made sense since adding 40/- for conversion still gives a good profit.
But CLPL.W13 or 14 trading above 10 when CLPL trading around 80 never made any sense to me. The only interesting story in CLPL warrants is that its being controlled - dragged down, collected then pushed up several times.

hariesha · 8 Re: Warrant trading opportunity Mon Nov 04, 2013 5:05 pm

hariesha

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smallville wrote:The best hope with JKH share is, that it has attraction from many parties. So its warrants valued than any other warrant at the moment.

The first warrant trading day we can see alot of trading ;)Ppl who got this for free by paying for rights conversion would look at covering a portion of rights prices too...
In warrant 1s case, for an investor, he/she has to pay 175*300=52500 to be eligible for 100 warrants. And also that person needs to have around 1950 N shares to get that rights amt.

A warrant-1 bought at 100/- carries a conversion value of 285/- in 2015. If by 2015, JKH reaches 600-700, we never know as JKH can announce another share split too. This, while making the warrant conversion a fruitful even after a share split, would also bring down the super profits that one could've earned with warrants.
Then if someone buys warrants in 2015, how much it can value? Hmmm... time will tells us

For example, when REEF trading at 70-80 range, REEF.W19 was trading around 16-22. Then it made sense since adding 40/- for conversion still gives a good profit.
But CLPL.W13 or 14 trading above 10 when CLPL trading around 80 never made any sense to me. The only interesting story in CLPL warrants is that its being controlled - dragged down, collected then pushed up several times.

After issuing warrants, a company cannot split shares or go for a rights issue till warrants are expiring, since it will dilute the warrants. That's why JKH has given shorter conversion dates for the warrants.

smallville · 9 Re: Warrant trading opportunity Mon Nov 04, 2013 6:29 pm

smallville

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Thanks hariesha, u sure about it?

seek · 10 Re: Warrant trading opportunity Mon Nov 04, 2013 6:53 pm

seek

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Yes hariesha is correct. Otherwise it not logical.

Fresher · 11 Re: Warrant trading opportunity Mon Nov 04, 2013 7:49 pm

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about rights post warrants, I'm not sure.

But in case of split, warrants can be split as well right?

hariesha · 12 Re: Warrant trading opportunity Tue Nov 05, 2013 2:49 pm

hariesha

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npp wrote:about rights post warrants, I'm not sure.

But in case of split, warrants can be split as well right?

Then you have to split the conversion price also.

smallville · 13 Re: Warrant trading opportunity Tue Nov 05, 2013 4:43 pm

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Yes its not logical to go for splits before warrants conversion and also splitting warrants, if so to split the conversion price too..

But are there any stipulated rules regarding this?

ice4083 · 14 Re: Warrant trading opportunity Tue Nov 05, 2013 8:02 pm

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...and what good timing too just before those hampers start knocking on our promoters door steps

Fresher · 15 Re: Warrant trading opportunity Tue Nov 05, 2013 8:18 pm

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hariesha wrote:

npp wrote:about rights post warrants, I'm not sure.

But in case of split, warrants can be split as well right?

Then you have to split the conversion price also.

of course.

If you take some ESOS details in some company reports, the options and their excercise price have been shown adjusted accordingly. Same logic should apply to warrants

As for the rules and regulations, I have no idea