Category: Money Tips Date: 2006-08-07
Baosteel Warrants listed on the first day to 1.263 yuan limit-sealed, market participants exclaimed "Warrants crazy"! Indeed, the combined price of 1.263 yuan to 4.50 yuan warrant is exercisable at a price, which means Baosteel shares August 30, 2006 OK right than 5.763 yuan, purchase warrants will not be a loss of talent. And 5.763 yuan a share for the current Baosteel is almost impossible to accomplish. While no guarantee for the future, there is still a huge amount of "crazy" limit-on-board hanging on waiting for buying transaction.
However, the second and third day proved that there is more than "crazy" more daring "fool" willing to buy Baosteel warrants a higher price. Baosteel Warrants consecutive hit 1.830 yuan, 1.976 yuan, 2.088 yuan a new high, is to be an old saying: "Cheng Si bold, and starved to death timid." Some media reports, an investor in the first day of the price of 1.263 yuan to buy Baosteel Warrants 5 million copies sold the next day, more than 2 million yuan profit can be described as a fortune overnight. Baosteel Warrants currently seriously out of its true value has evolved into a "Greater Fool" game.
Baosteel Warrants become "Fool" game is that it is precisely the root of the listed opening reference price of 0.688 yuan, allegedly provided by Baoshan Iron and Steel Corporation of the SSE. Warrant price of 0.688 yuan a share price that corresponds to 5.188 yuan Baosteel, which is almost within one year is already a Baosteel price fluctuation limit, leaving room for the secondary market is running out. The reference price of 0.688 yuan raised in the original warrant holder of appetite, secondary market investors want to buy warrants, and only reported higher prices, rising up on the beach, so the game will inevitably Fool staged.
Market can Bo silly, but the regulators doing? Shanghai Stock Exchange issued a "warrant transaction management approach" in the "single investor should not buy the number of warrants more than one million copies of" and other restrictive regulations, but we often see in the intraday Baosteel Warrants single transaction more than one million copies, 500 million or 9 million copies of the case, as long as the exchange a serious effort to investigate, will certainly be able to find behind the scenes manipulation of Baosteel Warrants "Invisible Hand."
Baosteel Warrants finally stopped the madness yesterday, to close out the long Yinxian peaked. At yesterday's last hour of trading, Baosteel Warrants diving, corresponds to the Shanghai bucked the trend and rose. Is a testament to the majority of investors view: "Warrants die, tape out of fashion."
