Earn minimum 25% profit from SEMB.X within 2 months

market_rana · 1 Earn minimum 25% profit from SEMB.X within 2 months Mon Oct 10, 2011 8:54 pm

market_rana

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SEMB.X0000 current price: 0.80
SEMB.W0016 current price: 0.40

You know that SEMB.W0016 will be convert to SEMB.X0000 by 16-12-2011 based on following fomula.

SEMB.W0016 + 0.80 = SEMB.X0000

If we compare the current share values with the formula,

SEMB.W0016 should have a downward trend and,
SEMB.X0000 should have a upward trend.

if SEMB.W0016 remains at the current value untill 16-12-2011,
share value SEMB.X0000 will be 1.20 ruppees.
(1.2-0. Cool

/0.8 ==>50% profit (within 2 months)

if SEMB.w0016 dropped upto 0.20 by 16-12-2011
share value SEMB.X0000 will be 1.00 ruppees.
(1.0-0. Cool

/0.8 ==>25% profit (within 2 months)

So, Isnt it good to collect SEMB.X0000 at this level.

Experts' comments please

Tiger

Tiger

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Hi my friend, this is wrong, Please check with some one who is knowledgeable on this. I can remember there were some good posts in the past. Just search and read.

Genting

Genting

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what will happen if SEMB.X becomes 0.60 due increase in share amount?

watcher

watcher

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You are unfortunately wrong. SEMB.w16 is overvalued because the exercise price is 0.8 and the share price of X is currently trading at 0.8. So in an ideal situation SEMB.w16 should be worthless (the value should be zero)

Why?
Because U need to pay 0.80 to get one share of Semb X at the end of the year. So based on todays prices, if you pay 0.4 for w16 and another 0.8 when the warrent is due for conversion, you will have paid 0.8+0.4 = 1.2 for a share that is worth only 0.8, giving you an automatic loss of 0.4 of 33.3%

(Assuming no transaction costs)

So If I were you i'd completely avoid w16 until the price of the X goes to at least 1.00. In this situ, the market value for w16 should be only 20.

The poor souls who are buying up w16 for 0.4 these days will get the shock of their lives when the conversion happens assuming that X does not move

market_rana

market_rana

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Tiger wrote:Hi my friend, this is wrong, Please check with some one who is knowledgeable on this. I can remember there were some good posts in the past. Just search and read.

How do you say, this is wrong.
Where did I made the mistake. could you please correct me.

I just wanted to say that SEMB.X0000 has a potential to increase upto 1.00 ruppee by end of the year.

pathfinder

pathfinder

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semb.x will go above 1 by DEC

warren buff

warren buff

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When analyzing Warrants one needs to compare the trading price of the warrant with its intrinsic value.this is done by using the'' Black- Scholes Call option valuation method''(this a very Complicated formula)The intrinsic vale is derived based on the current value of the stock price,its volatility,period of maturity and the risk free rate.
I think Black and Scholes received a Nobel price for formulating this method,but not too many people agree with their methodology and has come under a lot of criticism.

According to Black Scholes Model

SEMB W-16 @.80 should have an intrinsic value of 0.020214 cents,thus is overvalued by 0.38 cents.(.40-.02)

Last edited by warren buff on Tue Oct 11, 2011 9:14 am; edited 1 time in total (Reason for editing : adding more information)

soileconomy

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analyzing in Technical terms and Fundamental terms are two different types.
Investors prefer to have fundamentally sound shares , although technically there may be run in short term.
My question whether it is worth buying at Rs 1 (Normal shares after this exercise of warrants ).Will they show a growth in profits and how many shares will be in the market ?

bakapandithaya

bakapandithaya

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market_rana wrote:SEMB.X0000 current price: 0.80
SEMB.W0016 current price: 0.40

You know that SEMB.W0016 will be convert to SEMB.X0000 by 16-12-2011 based on following fomula.

SEMB.W0016 + 0.80 = SEMB.X0000

If we compare the current share values with the formula,

SEMB.W0016 should have a downward trend and,
SEMB.X0000 should have a upward trend.

if SEMB.W0016 remains at the current value untill 16-12-2011,
share value SEMB.X0000 will be 1.20 ruppees.
(1.2-0./0.8 ==>50% profit (within 2 months)

if SEMB.w0016 dropped upto 0.20 by 16-12-2011
share value SEMB.X0000 will be 1.00 ruppees.
(1.0-0./0.8 ==>25% profit (within 2 months)

So, Isnt it good to collect SEMB.X0000 at this level.

Experts' comments please

How you say so? Pls go & check what happended to CLPL.W0012, be careful with warrent conversion.
And i want to ask you a question
After convertion supply of X will be increased, then ur theory says it will remain in the same price? From which book u got this type of knowledge. Here, all are not from accounting & finance fields, some people don't know about demand supply theory not coz of their lack talent, but they are from other fields like Dr, Eng, Law, so pls think b4 comment

market_rana

market_rana

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bakapandithaya wrote:

market_rana wrote:SEMB.X0000 current price: 0.80
SEMB.W0016 current price: 0.40

You know that SEMB.W0016 will be convert to SEMB.X0000 by 16-12-2011 based on following fomula.

SEMB.W0016 + 0.80 = SEMB.X0000

If we compare the current share values with the formula,

SEMB.W0016 should have a downward trend and,
SEMB.X0000 should have a upward trend.

if SEMB.W0016 remains at the current value untill 16-12-2011,
share value SEMB.X0000 will be 1.20 ruppees.
(1.2-0./0.8 ==>50% profit (within 2 months)

if SEMB.w0016 dropped upto 0.20 by 16-12-2011
share value SEMB.X0000 will be 1.00 ruppees.
(1.0-0./0.8 ==>25% profit (within 2 months)

So, Isnt it good to collect SEMB.X0000 at this level.

Experts' comments please

How you say so? Pls go & check what happended to CLPL.W0012, be careful with warrent conversion.
And i want to ask you a question
After convertion supply of X will be increased, then ur theory says it will remain in the same price? From which book u got this type of knowledge. Here, all are not from accounting & finance fields, some people don't know about demand supply theory not coz of their lack talent, but they are from other fields like Dr, Eng, Law, so pls think b4 comment

Then, are you saying that it is not profitable of buying SEMB.X0000 at 0.80 rupees??

bakapandithaya

bakapandithaya

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Then, are you saying that it is not profitable of buying SEMB.X0000 at 0.80 rupees??[/quote]

Sometime yes, sometimes know, but u are guaranteeing 20%? that is the problem

market_rana

market_rana

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bakapandithaya wrote:Then, are you saying that it is not profitable of buying SEMB.X0000 at 0.80 rupees??

Sometime yes, sometimes know, but u are guaranteeing 20%? that is the problem
[/quote]

I'm saying that there is a possibility to increase the SEMB.X0000 share price from 0.80 to at least 1.00. (because SEMB.w0016 is not a zero valued share)
If this happens so, investors who purchased semb.x0000 at 0.80 will have 25% profit.

Antonym

Antonym

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The warrant normally derives its price from the underlying share, not vice versa.
But this is the CSE. Normal logic does not apply.

rm

rm

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market_rana wrote:

bakapandithaya wrote:

market_rana wrote:SEMB.X0000 current price: 0.80
SEMB.W0016 current price: 0.40

You know that SEMB.W0016 will be convert to SEMB.X0000 by 16-12-2011 based on following fomula.

SEMB.W0016 + 0.80 = SEMB.X0000

If we compare the current share values with the formula,

SEMB.W0016 should have a downward trend and,
SEMB.X0000 should have a upward trend.

if SEMB.W0016 remains at the current value untill 16-12-2011,
share value SEMB.X0000 will be 1.20 ruppees.
(1.2-0./0.8 ==>50% profit (within 2 months)

if SEMB.w0016 dropped upto 0.20 by 16-12-2011
share value SEMB.X0000 will be 1.00 ruppees.
(1.0-0./0.8 ==>25% profit (within 2 months)

So, Isnt it good to collect SEMB.X0000 at this level.

Experts' comments please

How you say so? Pls go & check what happended to CLPL.W0012, be careful with warrent conversion.
And i want to ask you a question
After convertion supply of X will be increased, then ur theory says it will remain in the same price? From which book u got this type of knowledge. Here, all are not from accounting & finance fields, some people don't know about demand supply theory not coz of their lack talent, but they are from other fields like Dr, Eng, Law, so pls think b4 comment

Then, are you saying that it is not profitable of buying SEMB.X0000 at 0.80 rupees??

Buying SEMB.X @ 0.80 Rs. is high risky. Market having lot of undervalue shares. No point of taking such kind of risks.

Check the following conversions;
CLPL - Warrant + converting Price > Share Price
What happened to GREG.W0001?

SEMB.X public holding percentage also very high.

yoyo

yoyo

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usually after a warrant conversion number of shares in the market increases. So it may be stagnant for some time due to large number of shares. buying @ 0.80 is too risky. 0.60 may be a safe price.

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Earn minimum 25% profit from SEMB.X within 2 months

1 Earn minimum 25% profit from SEMB.X within 2 months Mon Oct 10, 2011 8:54 pm

market_rana

2 Re: Earn minimum 25% profit from SEMB.X within 2 months Mon Oct 10, 2011 10:01 pm

Tiger

3 Re: Earn minimum 25% profit from SEMB.X within 2 months Mon Oct 10, 2011 10:17 pm

Genting

4 Re: Earn minimum 25% profit from SEMB.X within 2 months Mon Oct 10, 2011 11:05 pm

watcher

5 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 7:08 am

market_rana

6 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 8:34 am

pathfinder

7 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 9:03 am

warren buff

8 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 10:59 am

soileconomy

9 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 2:49 pm

bakapandithaya

10 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 4:45 pm

market_rana

11 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 6:13 pm

bakapandithaya

12 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 6:37 pm

market_rana

13 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 6:45 pm

Antonym

14 Re: Earn minimum 25% profit from SEMB.X within 2 months Tue Oct 11, 2011 8:46 pm

rm

15 Re: Earn minimum 25% profit from SEMB.X within 2 months Wed Oct 12, 2011 12:17 pm

yoyo

16 Re: Earn minimum 25% profit from SEMB.X within 2 months

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