Category: Money Tips Date: 2007-01-15
"038002,6 13 there is 4 cents, after two days is a .295." Fuzhou, China Construction Bank Investment securities business department Yan reminded journalists. 8,9 months of this year, such as Baosteel, China Vanke these warrants, it may not worth a penny. "It is best to wait until August after the bubbles squeezed out on the market warrants, warrants the price after the return to a rational re-investment warrants." Yan said.
Investors are advised to carefully research institutions also participate in the forthcoming expiration of the warrants, away from the height of the bubble-type warrants, such as Vanke HRP1. If investors want to participate in trading warrants must be strictly set the stop-loss, for warrants a high degree of bubble-type operation must adhere to the principle, but night.
"For example, 038002,9 expired on 4, put warrants, exercisable at a price of 3.73 ... ... while the real estate sector as China Vanke leading blue-chip companies, the probability of the right line is very small. Bull market context, such recognition The value of put warrants to zero. Their collapse will lead to other bubbles to the value of warrants a substantial return. The next exchange will certainly be issued early warning, so the near future we must pay attention to this risk. "Yan told reporters.
Shen Wan Institute's report also pointed out that this year, August 30 and September 4, Baosteel and China Vanke HRP1 will be the first JTB1 expire during the year there will be China's Wuhan Iron and Steel JTP1 Warrants Market and so on seven warrants expire one after another. With the valuation of warrant that the bubble is about to expire the continuous elimination of warrant prices will rapidly decline, and even fell 0.001 points.
Yan believes that warrant plunge deeper reason is that the current stock market in the warrants our products are as split share structure reform, supporting product launch. As the majority shareholder's inability to pay the cash to shareholders in circulation right price, at the same time holding little Major Holders the ability to not enough, so warrants came into being. These warrants, put warrants in particular, in the design, set a deadline difficult to meet the right conditions for the line, causing them to expire will be waste paper.
Second, the current valuation bubble warrants a great, almost all the warrants had been speculation turns off. "Warrants is only one capital market, T +0 transaction types. Therefore, the value of a certain degree of speculation. But the price must not deviate from the long-term investment value." Yan said.
According to the exercise of the right direction, warrants can be divided into warrants and put warrants, options, warrants are among the "call option", put warrants are "put option." Call Warrants is to give the holder a right but not the obligation, to exercise the purchase price of the underlying assets within a specified period of time. Accordingly, the put warrant gives the holder means a right but not the obligation, to exercise price in the sale of related assets within a certain period.
Warrants charm comes from a very strong leverage effect, but this effect must be positive with the corresponding shares in order to play. For example, A listed company with a total market of 10 million warrants issued in the secondary market trading price of 0.5 yuan, distribution contract requirement, for investors in the 12 months after the price of 8 yuan to buy A shares, then, A shares only In the 12 months the price was 8.5 Yuan, investors make a profit. However, if a year later, A shares because the market downturn or company performance factor in decline, the price is only 8 yuan, or 8 yuan, then the investors warrants to purchase 0.5 yuan on the failed to be implemented. And if after 12 months due to market factors or factors, company performance, A stock price reached 12 yuan, then the investment income is 12 yuan warrants minus 8.5 yuan, or 3.5 yuan, which means you are now 0.5 Yuan bought warrants, after 12 months of earnings is 3.5 yuan, up 600% yield.
Yan suggested that the "new admission of the investors do not know why the matter warrants because the warrants are cheap, it will treat it as buying cheap stocks to save the blind. Such investment will end in failure. Our suggestion is that do not know Warrants Do not operate on the warrants. If it is changed as a share of the price obtained warrants, you can choose the right time to sell. Secondly, we must make asset allocation, you can use about 10% of the investment fund has acquired part of the investment value of warrants to obtain a certain degree of leverage gains . Finally, and most importantly, warrants only a shadow of its ordinary shares, so we must invest in warrants Institute for the corresponding shares of the investment value is. "
