6 New Call Warrants
6 new call warrants from OSK will be listed on 21 Jan 2010:
| New Warrants | Expiration | Type | Ex Price | Ratio |
| DIALOG-CB | 20/09/2010 | Call | MYR 1.3500 | 1 : 1 |
| PROTON-CC | 20/09/2010 | Call | MYR 3.8000 | 5 : 1 |
| PPB-CA | 20/09/2010 | Call | MYR 16.0000 | 16 : 1 |
| UEMLAND-CB | 20/09/2010 | Call | MYR 1.4500 | 2 : 1 |
| RHBCAP-CB | 20/09/2010 | Call | MYR 5.0000 | 5 : 1 |
| TOPGLOV-CA | 20/09/2010 | Call | MYR 10.0000 | 10 : 1 |
Written by Fong Min Hun
Monday, 12 October 2009 00:00 -
Last Updated Friday, 06 November 2009 15:12
Investors may find the warrant a relatively cheap entry into the stock.Proton-CB, the European-style cash-settled call warrant, was listed on Sept 29 at an exerciseratio of five warrants for one Proton share with the strike price set at RM4.40. The issue price ofProton-CB was set at 18 sen per warrant. The exercise date for Proton-CB has been set for Oct4, 2010.Proton-CB is said to be “in the money” should the mother share trade above the strike price,although the pricing of the warrants and the strike ratio should also be taken underconsideration.At an issue price of 18 sen per warrant, holders would break even should Proton shares hitRM5.30 as the cost will be RM5.30 ((18 sen X 5) + RM4.40). As an European-style warrant,Proton-CB can only be exercised on the date of maturity.However, structured warrants like Proton-CB are meant as a trading tool to take advantage ofthe price volatility and sentiment, unlike the warrants issued by companies, which investorskeep for long-term gains.Generally, warrants will move in tandem with the underlying assets. In normal circumstance, thederivatives tend to move faster and sharper than the underlying securities. Hence, for bullishinvestors who intend to ride on the volatility, Proton-CB could be an option