Category: Money tips Release Date: 2006-07-27
Baosteel, long electric warrants baked around the corner, their pricing and the future trends given rise to concern and speculation. "Daily Economic News" for this interview with some of the industry, listen to their Baoshan Iron and Steel, has a long analysis of the value of electric warrants.
Days relative to investment in financial innovation, according to the Department of Fan Xiang-Peng estimates that if, after Baosteel resume trading steady at 4.5 per warrant exercise price, then the warrant price stability is more reasonable at around 0.45 yuan, 0.33 yuan if the low-to-line, investors can step up to 0.6 yuan or more, Investors can consider departure. In his view, taking into account the warrants may be listed in the medium term effects of construction to make money to cultivate markets in order to be able to attract a more popular way Dikaigaozou, so slightly more reasonable position; to Baosteel's valuation warrants should normally be a one-year fixed deposits after-tax yield of 1.8% as a risk-free interest rate, substituting into the Black - Skoll (BS) model calculations, the time value of warrants will gradually shrink and after one year is estimated at 5.1 yuan of Baosteel is almost, so warrants priced at 0.6 yuan higher than .
Since that announcement, Baosteel Baosteel warrants worth approximately 0.63 billion, is the seven-year bonds with a 3.3% risk-free rate as a non-substituted into the model calculated. This practice has been in the industry have questioned whether one year is difficult because there is such a high risk-free interest rate, the value of the warrants is estimated that 0.63 million warrants are overvalued in order to raise the suspicion of the price.
Baosteel Warrants as the first warrant only speculate whether it would be violent? From the Shanghai Stock Exchange Vice President Liu Xiao-dong in the "China Development Forum warrant" speech may be seen more clues, he said, "Baosteel Warrants does not allow failure, we will deploy all resources to fully cooperate with the Baosteel Warrants stable market, including the prepared to introduce the market maker system "," Once the warrant unusual fluctuations in trading prices, the SSE will have the right under the "Warrants Interim Measures," the relevant provisions at any time to suspend its trading. " The violence will be identified as the key to speculation in the "abnormal fluctuation" and found the.
Baosteel Warrants Far from stock, as the industry will be affected. At present, many brokers are not optimistic about the steel industry, the gold in the steel industry is only recommended Baosteel, that it will not be a sharp decline in profits, shares of Baoshan Iron and Steel after the reform will be a long-term stock price at 4.5 yuan as 4.5 per the following will be the majority shareholder by hold. Analysts believe that the outstanding shares of Baoshan Iron and Steel shares offered to the shareholders get 2.2 shares of 10, after the cost fell to 4.21 yuan per share, if the calculation of warrants profit, the costs will reduce the stock after the step change to adjust to 4.5 yuan a great possibility. If Baosteel fully Tianquan to 5.1 yuan in the vicinity, I am afraid will be selling a large number of institutions.
Long Electric Warrants: expected volatility of 1.748 yuan ~ 2.5 yuan
Due to the long power may be the first to resume trading, so that warrants the pricing of electricity is relatively long Baosteel simple. China International Capital Corporation believes that due to the long line of power warrants the right to raise funds will be used to purchase units, will increase the company's earnings more than 10%, essentially offset the impact of capital expansion. Hai Tong Securities Yang Haicheng, according to estimates, Yangtze Power to suspend closing price of 874 yuan, if the naturally diluted Tianquan Yangtze Power is not maintained at 6.94 yuan, as with Paul at the end of the value (1.8 million), a long electric Warrants can be seen as the expiration date 1.8 million in cash (discounted value of 1.748 yuan), combined with an exercise price of 7.3 yuan warrants, in accordance with BS model, without considering the dilutive effect of equity warrants, risk-free rate of return are taken to be 2%, over the past six months, the daily rate of return The standard deviation of 0.0168, then the exercise price of 7.3 yuan estimate the value of warrants is very low, only 0.0003 yuan, that is, a long electric warrant theoretical price of about 1.748 yuan, almost do not have the option value; However, if a long power, as Some agencies estimate that the long-term price of 8 yuan in the vicinity, then the warrant price should be for 2.5 yuan
