Category: Money Tips Date: 2006-08-04
Tuesday, despite efforts to support the market Kongpan funds, but can not hide a gradual weakening trend in the market. Rely on the magic of China's Sinopec, the Shanghai index can still be maintained at the half-line (125 on line) above, but Shen Chengzhi, deep KLCI's Po Wei, as well as the stock fell more than 75%, basically verify that the short-term top Department of reliability.
If the first day of listing of Baosteel Warrants daily limit, 36% of turnover fairly normal, then the Shanghai stock market Tuesday its turnover accounted for 1 / 6, turnover 330% in intraday trading daily limit should be referred to as "sensation in" the. In fact, Baosteel warrants Tuesday positioned 1.263 yuan, it has been found to exceed the value of the scope of Tuesday's surge is entirely a gamble. Some people with highly complex pricing theory concluded that warrants should be positioned Baosteel 1.5-2 per hour, even Baosteel 0.32 yuan per year dividend commitment to identify, including the right of the special nature of Baoshan Iron and Steel making it warrants the extra premium should have amazing, it is a statement both arrogant and ignorant. Simply put, according to Baosteel 4.5 per exercise price, if the position warrants the price of 1.8 yuan, it means that one year after the Baosteel shares at 6.3 yuan on the expected price, the corresponding share price was 4.6 yuan Baosteel to reach 37% of the premium. Putting aside whether these expectations can be achieved, even if achievable, the cost of buying warrants Baosteel shares are also expensive compared with buying too much! Warrants for speculation subtlety lies in its leverage, generally in the 5 times leverage multiple warrants the following speculation is largely meaningless. At present, the leverage multiples Baosteel Warrants less than 3 times, but must bear more than 30% of the price risk, it is not worth too much of. Therefore, Baosteel Warrants of the stock market now is a purely speculative market, a typical "Monte you stupid" type of hype, there can not be explained by the expected value.
We do not deny the value of Baosteel's stock investments, but in terms of Baosteel warrants, may, at a drop of about only after the fall out of chances, but the last few trading days, it is recommended customers Lex, do not blindly participate.
In the excitement of Baosteel Warrants relieved against, A-share market seems weak, and the general downturn in the case of individual stocks, ST segment and if rampant, the most typical, compared with ST Fenghua, thanks to credit and debt set-off, mid-year report significant increase in performance , another management restructuring in the direction of the vision, the Unit after the favorable uncertainties have been rising continuously over the past month, on the other ST Unit has also created a certain amount of demonstration effect. But, overall, we believe that ST shares of active and in Shanghai a week ago, the nature of the local unit are similar, speculation and a greater element of self-help, customers holding such a species, might homeopathic shipping. A-share market is at a significant weakness among stocks for the warrants and garbage mad speculation, it is the weak performance of the market.
As the Hong Kong H-shares market was started last Tuesday the continuing callback finishing among the domestic A-share market on the reality of the pressure greater, and today's A share index of the struggle to rely mainly on indicators of stocks to support the market, once the target shares subject to both inside and outside price parity constraints let go, A-share market is likely to reproduce the deep-down rate.
