More warrant, MONDAY??
Let's check is it worth it???
NO INFO AT THE TIME OF WRITING, KANASAI.
NO INFO AT THE TIME OF WRITING, KANASAI.
New Warrants Expiration Type Ex Price Ratio List Price
ANNJOO-CW 31/01/2011 Call MYR??
BJCORP-CW 31/01/2011 Call MYR ??
WASEONG-CW 31/01/2011 Call MYR ??
GENS-CW 31/01/2011 Call MYR ??
Written by Joseph Chin
Friday, 02 April 2010 17:55
KUALA LUMPUR: AmInvestment Bank Bhd's call warrants over ANN JOO RESOURCES BHD [] (ANNJOO-CW), Berjaya Corp Bhd (BJCORP-CW), Wah Seong Corp Bhd (WASEONG-CW) and Genting Singapore plc (GENS-CW) will be listed on Monday, April 6.
It said on Friday, April 2 the CWs focus on thematic plays and on stocks well supported by AmResearch calls. These new call warrants are targeted for short term traders who want a leveraged bet on the underlying stocks. All four have an issue price of 15-16 sen and a nine-month tenure.
AmInvestment Bank managing director TC Kok said the CWs cater to warrant traders very rotational in their risk appetite.
"We are bullish on Malaysian equities with reference to their outperformance of regional markets and aside from select banking stocks, small/mid caps specifically are the best positioned to benefit from the increasing liquidity we see," he said.
AmInvestment Bank had, in January, issued CWs on Tan Chong and IJM-Land, the first CWs on these two stocks at that time. CWs are expected to perform well now that market sentiment is stronger, he said.
Ann Joo is the first steel company which the CWs are issued. AmResearch has a Buy call on Ann Joo, with a fair value of RM4.20.
Explaining the rationale, it said steel prices have been rising since last October and this trend was expected to continue as the economy picks up. Ann Joo's blast furnace, to start production in July, is expected to add to earnings upside. The blast furnace, the first in Malaysia, uses iron ore as feedstock and enables the company to produce higher value-added steel products.
BCorp is a conglomerate with diversified interests including consumer (75%-owned Cosway Corp), gaming (48%-owned Berjaya Sports Toto), property (53%-owned Berjaya Land) and auto.
AmResearch has a Buy call on BCorp with a fair value of RM1.80. BCorp is expected to benefit from greater valuation transparency with the planned listing of Berjaya Retail and Berjaya Food. Other event-drivers for re-rating include the potential approval for the privatisation of Vietnam's lottery operations and the joint-venture with Chinese automaker BYD to export cars.
As for Wah Seong, a pipe-coating specialist for the oil and gas industry, it will benefit from the New Economic Model (NEM). The NEM focuses on the oil and gas industry as one of six National Key Economic Activities to be engines of the nation's growth. AmResearch has a Buy call on Wah Seong with a fair value RM3.40. Wah Seong's expanding order book, greater earnings visibility and potential M&As underpin the company's outlook.
Genting Singapore operates Resorts World Singapore and is also the largest casino operator in the UK. The market has been bearish on Genting Singapore recently: its current share price of about 90 Singapore cents is significantly off its January high of S$1.32. There are four Genting Singapore CWs listed on Bursa with exercise prices greater than S$1.
These warrants were issued when the share price was stronger and are now out-of-the-money. In contrast, AmInvestment Bank's Genting Singapore CWs has an exercise price of 90 cents and will enable investors to profit from share upside from these lower levels.