New call warrants (CWs), BURSA-CE and TM-CE has just been listed on the trading board. Using different prices of the CWs, I have computed the premium and percentage gain in price accordingly. At current mother share's closing price, BURSA-CE has a premium of 9.83%, meanwhile TM-CE has a premium of 12.55%. Both stocks are considered very attractive at this level.The good news:
On a usual trading day, I would expect the CWs to trade around 25% to 30% premium on the first day of trading. With that level of premium, anyone who has gotten these CWs at subscription price would be able to achieve about +83% to +130% gain in their portfolio.
The bad news:
The Dow plunged a massive 198.94 points this morning. Over the past 3 sessions, the Dow industrials have lost 410 points. With benchmark yield surging above 5% , stocks no longer look attractive. Besides that, there is data on jobs and retail sales pressuring bonds, as well as the tide of rising interest rates around the world. This would probably reduce the potential upsides of the CWs. Hopefully, both BURSA-CE and TM-CE will be able to trade on the positive levels. I would not put any high hopes this time. *fingers crossed*
2 comments:
my advise,
dont spoil your blog with "malai gu".
take it out man. see now salvo dali also bullish on CHINA stocks man.
Dear Simon,
Although I am concentrating more on the HK & China markets, I would also like to share out other news and info. Thanks for ur advice anyway.. appreciate it.
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