On-line right around the corner put warrants different treatment Money Tips

Category: Money Tips Date: 2007-06-18

Author: Wu Ping

Xiao-min: This issue is a subject of discussion with everyone concerned with the warrant, and invited guests was Mr. Wu Guoping. Market performed well today, warrants, warrants Baosteel right near the line of the recent period, there is also a pattern of sharp rebound for two consecutive days, with few days ago in Shanghai and Shenzhen Stock Exchange, repeatedly reminded the warrant holders of contrasts. Crazy bubbling, rational return, crazy bubbling, the return of the final will also be rational, let us first listed on the warrant to be a simple review:


Wu Ping: First, let us recall the warrant listing process:

2005 August 22, Baosteel warrants begin trading by the market capitalization of the crazy speculation; 25, hit a record high 2.088 yuan, a month after the September 22, below the starting price; 11 9, suspend the Baosteel Shanghai Stock Exchange issued broker warrants notice; The next day, the first lower limit Baosteel warrants. Soon afterwards, the Wuhan Iron and Steel butterfly market warrants, put warrants debut; December 5, Shenzhen City, three warrants Steel and Vanadium PGP1, Vanke HRP1, Anshan Iron and Steel JTC1 the same time, the stock exchange; Since then, the airport JTP1, Valin JTP1, China Merchants Bank CMP1, Shanghai Field JTP1, Baotou JTP1, Baotou JTB1, Wu Liang YGP1, Wu Liang YGC1, Handan Iron and Steel JTB1, raw water CTP1, first JTB1, Wanhua HXP1, Wanhua HXB1, depth can be JTP1, Jacoby QCB1, Jacoby QCP1, Haier JTP1 successively listed warrants of gold, attracting the participation of many market funds, warrants抄手Rijindoujin during this period experienced the glory, but also to investors who do not bring luck scars. However, the most recent period, warrants to the weak price trend evident.

Xiao-min: This is a period of time clearly warrants to the weak trend, what do you think the main causes?

Guo-Ping Wu: I think that this aspect has its own warrants market has undergone a substantial pre-storm fried callback after finishing the technical requirements; the other hand, is the most important reason, that is subject to Baosteel and China Vanke "doomsday wheel" the impact of the time value of that is because they are a result of the rapid reduction in the value of return, which return the value of the enormous decline was to make the warrants market is almost suppressed, speculation will be greatly on the intensity of repression.

Xiao-min: about to enter the line of the right period of Baosteel with Vanke two warrants from the period of the price level of investment in view of the availability of value-added, and why?

Wu Ping: Vanke warrants as a put warrant, at present its share price much higher than the exercise price of the situation, would be able to explain their current investment is simply not the slightest value, you can say for sure that the ultimate put warrants Vanke almost zero probability of the right line, that is their current low prices, the market is concerned, only there is a certain speculative value.

As for Baosteel warrants, because their warrants, the right to present its line of stock price and the prices are almost the same, that is, a difference of about Mao, in other words, the future of its warrants will be quite variable, but as long as it is currently the Shares rose a little hair much money, then the warrants will be equipped with its own line of the right value, and therefore, from this point of view, the current Baosteel Warrants is a certain degree of speculation and investment value. Of course, the key is how much the value of Baosteel Warrants to see the performance of this unit, which warrants a reasonable price should be equal to Baosteel's share price minus the exercise price.


Xiao-: Do you think that how to determine whether the value of investing in warrants? Premium for the existence of the phenomenon of how do you see? To what extent the norm it?

Wu Ping: whether the investment value can be considered to start from two perspectives, first, the valuation of warrant in this unit, 2 is the premium rate. Warrants originally played to enlarge or reduce the effect of the value of the shares, there is nothing wrong with a certain degree of premium rates, very normal, with reference to foreign standards, general premium of about 30% is more reasonable and normal.

Xiao-: To determine the valuation of warrant can be several ways to start?

Wu Ping: specifically to determine whether the investment value of the warrants, in fact, is largely judged on their value of the Unit, if the high value of the shares put, the future there is still some room to come down, in particular, there is a great chance to fall to below its when the exercise price, while the market really came out as expected, then the put warrants on with a certain value; On the contrary, if the value of the shares undervalued, there is considerable rise in the next room, especially those is very likely far higher than the exercise price when the market has really came out as expected, then the warrants would have considerable value.

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Xiao-min: When only the warrant is exercisable for periods approaching its own as well as other warrants have any effect?

Wu Ping: Warrants the right to get near their own line, to warrant itself, it means that the time available to think less and less value of time will allow the rapid decline of the value of its own rapid consumption of premium will gradually tend to zero eventually will inevitably return to usher in the value of the more brutal, but it would be more a process of terror. Warrant is exercisable for a view close to the concentration of market risk that the release of warrants for the other, no doubt, will play a big role in drag, let the market fully aware of the risks, will be largely put him in the other warrants exist of water to a certain degree of compression, which is a fear of sediment under the process.

Xiao-: In terms of Baosteel warrants, with the line of the right period is approaching, Baosteel's own stock price do you think would be affected?

Wu Ping: As Baosteel Warrants are warrants and their exercise price with the price of this stock is quite close, meaning that its share price a little of this appears in the current basis of a certain rise, will directly affect its final exercisable at a price, therefore, as much as possible for those who want to Baosteel Warrants the right line to the high price of funds, no doubt, be ready to launch attacks of this unit of Baosteel, after all, rules of the game was already decided everything, therefore, the future of the remaining few days, the shares of Baoshan Iron and Steel that it will inevitably usher in unusual volatility in reference to foreign markets, such examples are quite common!

Xiao-min: For the would-line of the right how do you see?

Wu Ping: Baosteel warrants, as the first call warrants, I think that is definitely able to run it right. As for the Vanke warrants, which put nature, combined with its present share price is currently well above the exercise price, so I think it ultimately will not be the right lines.

Xiao-: In the Baosteel, China Vanke line of the right to do you think warrants the investment, speculative value would there be a re-excavation phase of it?

Wu Ping: Warrants Since it is a market, it means that there will be ups and downs since, as the stock market, fell more naturally will usher in a higher process. To be sure, after the baptism of the large-scale after the warrants market, it will inevitably be an investment, speculative value of re-excavation stage. In other words, the future will warrant the market once again slowly usher in sunny days.

Xiao-min: Finally, you talk about in the current environment warrants action under the proposal; recently how we can pay attention?

Wu Ping: the current environment, focus is the future, which means the future more formally withdraw from Baosteel and China Vanke warrants warrants market in the future. Of course, the recent row about the right to be regarded as part of the future during the period, this part of the market will inevitably occur some unusual situation, that kind of situation I is defined as "early action."
Specifically talk about future opportunities before to be a metaphor, the market continued to fall recently warrants, as spring-like, the more pressure the more compact, space getting smaller and smaller, but once the pressure is released, the spring will no doubt bounce if you dropped the explosive force is quite striking. The more depressed the more explosive power hidden behind the terror. The current warrants market in Baosteel and China Vanke line under the pressure of the right to get near, the overall show is a more oppressive conditions, but once the market fully to release the pressure, we can imagine, the future of the warrants market opportunities are.

Of course, since even if the warrants market is currently experiencing a wave of repression in the wake, most of the put warrants at present they are still in a worthless position, in other words, who want to grasp the put warrants for investors, please Keep in mind that it is speculative rather than investment, but must be understood that their ultimate fate will likely put warrants, such as China Vanke, ultimately fell a few cents, put it plainly, the future will certainly be put warrants pulse from time to time the speculative opportunities, but the final outcome is likely to remain down to a few cents, in other words, Do not look a lot of put warrants have been and then drop completely different, just 1 yuan, but for medium and long term down space is concerned, there is still a substantial amount of room.

It seems to me, as there is still the overall market in a bull market phase, the real value of investments will continue to have clustered in the warrants, similar Wuliangye warrants a "myth" the story in the market right when I believe it will remain will be staged . On the current subscription markets, recommends investors warrants an active interest in iron and steel, as well as severely oversold value has begun to have considerable power warrants so long.

Xiao-: Thank you very Mr. Wu Guoping, today we come to an end the topic of the first paragraph.

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