Category: Money Tips Date: 2007-07-25
Today, after an absence of several years of warrants last appearances --
Different types of opportunities and risks
Warrants, in fact, the right credentials, just like buying a movie ticket can get to the cinema to see a movie right. Warrants with a transaction value of more than just being due to a trading properties, and will have a price volatility. And because prices are low and difficult to warrant valuation concepts and rules and regulations subject to the constraints, therefore, warrants a great deal of price volatility is both a paradise, but also to bundle wrapped in cloth, very challenging, in the Hong Kong Stock Exchange market, every year Warrants have become rich because of speculation examples of that year, but also because of speculation warrants bankrupt story.
However, there are two types of warrants, namely, equity warrants and covered warrants, the former refers to the listed company issued by the holder in the next period of time to subscribe for shares of listed companies of evidence, which refers to the listed company or the first tripartite distribution, the latter for some time in the future holders of shares offered within the third-party certificate. As the former is vulnerable to the impact of stock prices of listed companies, so stock price volatility is relatively limited, to attract capital is also relatively limited degree of concern in the Hong Kong Stock Exchange market, the total amount of transactions each year warrants to 1% of the equity warrants, 99% were prepared by of covered warrants, because the trend of unfettered covered warrants, somewhat unrestrained feeling, therefore, a great income, the same risks are also great.
Warrants a result of the Fund's participation and docile
However, in the forthcoming noodles "City" G Baosteel warrants for the volatility of the warrants might be higher than expected by the market but also much more flat, because the fund's investment style is Win Tun of water, lack of private equity funds of funds owned by the aggressive attacking style, The G Baosteel Warrants are not only warrants, but also because G Baosteel funds, brokerages and other institutional investors hold nearly 70% of the proportion of outstanding shares, since G is the price of Baosteel Warrants during the program and distributed by the circulation of G Baosteel shareholders in, which means G Baosteel fell about 70% of warrants to institutional investors who, therefore, their movements will be relatively stable.
Of course, due to funds and other institutional investors that caused fragmentation of the warrants for every one share held by the Fund is not large, and because the fund is likely to Lock's strategy, then, G Baosteel and even the future of electricity warrants G-long flow of chips will be less, resulting in short-term price fluctuations, it is still funding for the off there was a major investment opportunities. More importantly, due to the C of E has a certain effect of a small stroke a big, therefore, is still expected to become a paradise for small and medium investors.
How to trade G Baosteel Warrants
According to the rules of trading warrants, G Baosteel Warrants up decreases with the restrictions to the price increases, for example, to determine its price in order to warrant the closing price the previous trading day's closing price the day before yesterday + the underlying securities î–?Underlying Price Limits î–?125% î–?OK the right ratio to G Baosteel, for example, because most industry analysts believe that G Baosteel Warrants opening of the reference price of 0.70 yuan, according to the relevant rules, which can be used as warrants the previous trading day's closing price, while G Baosteel 8 18-day closing price was 4.58 yuan, G Baosteel or limited to 10%, the ratio of a power line, then, G Baosteel warrants price of 1.2725 yuan daily limit. Drop restrictions are set to warrant the closing price the previous trading day's closing price the day before yesterday an Underlying Underlying Price Limits î–?125% î–?row of the right proportion, then, G Baosteel warrants daily limit price of 0.1275 yuan.
However, according to industry analysts to determine if the G Baosteel Warrants cost more than 1 yuan means that the risk could be thrown, if at 0.6 yuan, you can boldly buying, do not take into account the existence of stock price volatility, it seems , due to the unique characteristics of A-share market, G Baosteel warrant operation of the company's fundamentals are also hanging hook just because the A-share market's unique fried new tradition, I do not know G Baosteel will hit up the price of warrants decreases.
But one thing is worth noting that, industry analysts based on the BS model derived from the price of Baosteel's warrant and some commentators have recognized the secondary market price is not the same because the commentators are mostly simplify them, because the equivalent of G Baosteel Warrants Investors in the next 378 will be OK after the transaction, the right to rights, that a warrant could be 4.5 per purchase G of the outstanding shares of Baoshan Iron and Steel in a while because the next boom cycle, the impact of iron and steel industry, many secondary market critics of the G Baoshan Iron and Steel in the coming year whether the firm after the price of 4.5 yuan to the attitude of doubt, and if there really is no point to 4.5 per prices above this mean that G is a sub-Baosteel Warrants the money is not worth it? This is to draw the attention of investors.
