Category: Money Tips Date: 2006-08-22
Last week, Shenzhen and Shanghai stock markets dropped out of high volatility trend means that the current round of Thursday's heavy volume sell into the rally may be short-term has ended, the two cities will have a broader market for some time poised to shock the trend, it might start a new upside Quotes . Last week, summed up the trend, the following points should be noted: first, the rally ended with the resumption Baosteel, which means the second round of Quotes and the split share structure reform has strong linkage between them, although some stocks have begun a new The share reform is expected to speculation, but in the overall market is concerned, how the split share structure reform in full swing yet to be unified plan of management, in particular, rumors in the stock market when it issued guidelines for reform. Therefore, it can be expected that the new upside Quotes should depend on the next step in the process of share reform.
Secondly, the hot spots in terms of the broader market this week, the performance of blue chips and blue chip stocks are generally not ideal, in the broad market continued to move up the process of shocks has been stagnation or even contrarian callback, but also led to broader market Thursday's sell into the market to reflect the focus of attention is not a daily news results. In sharp contrast to the Shanghai stock market shares of local stocks, led by a strong trend of reform is expected to stocks that the market continues to split share structure reform of the treasure hunt game with immense interest. To some extent, this should not be purely speculation, but the fundamentals of these stocks less attractive, so most prudent investors who wait and see.
Monday's news of the weekend to calm investors awaited stock reform guidelines are not completed in the second batch of the pilot launch of the first time, indicating that the introduction of relevant policies and there is still brewing process. Baosteel Warrants Monday, but the market started trading within and outside the focus of attention in the short term warrants trading are worth the opportunity to become a major topic of concern.
Here, we also Baosteel warrants trading recommends the following:
First, the Baosteel Warrants is the major shareholder of G Baosteel Baosteel Group issued duration of 378 days of European warrants, issuing volume of 387.7 million copies, the exercise price of 4.50 yuan. Baosteel Friday closing price of 4.62 yuan, higher than the exercise price of warrants is valuable, however, warrants a reasonable price is not 0.12, the agencies estimate of the reasonable price of 0.5 yuan to 0.85 yuan.
Mature markets of the warrants in accordance with BS pricing model calculations, the factors that influence the price Aside from the warrant exercise price, but also including Baosteel's share price and its volatility from the time of maturity, interest rates, and cash dividend distribution and so on. The current market interest rates lower, Baoshan Iron and Steel stock reform promised a higher dividend level of the next three years, rising to the warrants are positive factors, and Baoshan Iron and Steel stock prices depend on market boom of the iron and steel industry, Baosteel judgments and value judgments, recognition degree or higher, but that does not mean that stock prices rose on a possible short-term.
Second, the initial listing price of Baosteel Warrants may be far higher than the market estimate of the level, which may have many reasons: for example, generally optimistic market shares year after Baosteel positioning, warrants bullish; For example, the market for the next market rally have more confidence in warrants is also bullish. Of course, may be the sought after market for novelty and speculation dictates, which may be greater potential risk. We expect far higher than the opening price of Baosteel Warrants market expectations, short-term should be based on speculation, as the, so risk-control capability is not enough for investors to be a temporary wait and see.
Third, warrants the best time to buy shares is expected to being shortly great l, warrants can be a small broad characteristics of their play to the extreme, and so the key is to buy warrants is a clear trend of shares judgments.
Monday warrants should buy it, depends on whether the Baosteel price rise judgments. To some extent, the recent adjustment of blue chips, making long-electricity, Baosteel shares resume trading after the positioning is more rational, indeed for the future stock price rose to leave some space, but the short term there may be much higher blue-chip do? If there is such a possibility, Baoshan Iron and Steel led is not surprising, then the warrants may be crazy. Otherwise, the warrants may be Gaokaidizou, short-term driven and controlled by a group of blind speculation funds.
Finally stressed that a broad market rally after a period of adjustment is bound to the process gathered momentum, which would restrict the short-term blue-chip strength, but also restrict speculation Baosteel warrants, prudent investors should wait for the time being.
