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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » SEMB.W0016

SEMB.W0016

Go down  Message [Page 1 of 1]

1SEMB.W0016 Empty SEMB.W0016 Fri Aug 19, 2011 5:07 am

dragz


Senior Equity Analytic
Senior Equity Analytic
Is it over valued at 0.40? My broker advised told me not to buy that share Sad

2SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 6:31 am

sajeethk


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
what basis he say this is over value. do you have any report on that..

3SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 7:52 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@dragz wrote:Is it over valued at 0.40? My broker advised told me not to buy that share Sad

Remember that for
w16 , conversion price to semb.x is Rs 0.8
w15 conversion price to semb.N is Rs 1

4SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 8:14 am

lbnnirmal

lbnnirmal
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Wt is the date that we can convert SEMB.W0015 in to shares ???

5SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 8:26 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@lbnnirmal wrote:Wt is the date that we can convert SEMB.W0015 in to shares ???

December I believe

6SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 8:34 am

rm

rm
Senior Equity Analytic
Senior Equity Analytic
SEMB.X is selling at 70-80 cents.

to convert SEMB.W0016 to SEMB.X, you have to pay additional 80 cents.
if u buy SEMB.W16 at 40 cents, after your conversion SEMB.X cost will be 1.10-1.20 Rs.

if SEMB.X moves more than 1.20 Rs. before the conversion, then you a safe. otherwise if it happen like CLPL warrant, there is a possibility to go SEMB.W16 to 10 cents also.

this may be the reason, ur broker told not to buy.

7SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 8:47 am

lbnnirmal

lbnnirmal
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Is there any closing date for selling on CSE for the warrant SEMB.W0015 ?? How can I find this kind of information ?? Is it available on CSE site??

8SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 8:49 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@lbnnirmal wrote:Is there any closing date for selling on CSE for the warrant SEMB.W0015 ?? How can I find this kind of information ?? Is it available on CSE site??
Official closing date is not announced yet. But in the warrant issue doc ( look under SEMB annoucements) they mentioned it is going to be in DEc 2011

9SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 8:53 am

CHASE

CHASE
Manager - Equity Analytics
Manager - Equity Analytics
to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

10SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 5:23 pm

dragz


Senior Equity Analytic
Senior Equity Analytic
Its a long shot, I wanna buy @ .40 and sell .50,

11SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 9:09 pm

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@dragz wrote:Its a long shot, I wanna buy @ .40 and sell .50,

Look how many shares to sell at .50.And also company finacials are not good.May have a run.But do not expect warrent 16 to have a good run.

12SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 9:47 pm

CHASE

CHASE
Manager - Equity Analytics
Manager - Equity Analytics
@rijayasooriya wrote:
@dragz wrote:Its a long shot, I wanna buy @ .40 and sell .50,

Look how many shares to sell at .50.And also company finacials are not good.May have a run.But do not expect warrent 16 to have a good run.
Agreed with rijayasooriya, Don't think only the numbers and invest on it expecting 25% profit.probably you'll end up with big loss.

13SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 9:58 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

14SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 10:22 pm

MJ


Manager - Equity Analytics
Manager - Equity Analytics
Exactly guys, SEMB will have a couple of runs before the maturity of Warrents, But I doubt whether it will make the Warrents attractive.

As Academic correctly said...you need 80 more cents to convert the warrent to a Non Voting share. When the No Voting share is trading below conversion price, who on earth wants to pay money to buy Warrents.

15SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 10:31 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@MJ wrote:Exactly guys, SEMB will have a couple of runs before the maturity of Warrents, But I doubt whether it will make the Warrents attractive.

As Academic correctly said...you need 80 more cents to convert the warrent to a Non Voting share. When the No Voting share is trading below conversion price, who on earth wants to pay money to buy Warrents.


No wonder. We have investors (?) in the CSE who pay 45 for rights at 70 when the share is trading at 75.

16SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 10:46 pm

CHASE

CHASE
Manager - Equity Analytics
Manager - Equity Analytics
@Academic wrote:
@CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

Agreed
with your explanation. But what I mean is why we are buying W16 when x is trading
below the conversion price. For now it’s muck risky to go for W16 for expecting
profit. When I consider the opportunity cost there’s no value for W.16 for me. This
is same worst than SLPL warrant. Please correct me if I’m wrong.

17SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 11:03 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@CHASE wrote:
@Academic wrote:
@CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

Agreed
with your explanation. But what I mean is why we are buying W16 when x is trading
below the conversion price. For now it’s muck risky to go for W16 for expecting
profit. When I consider the opportunity cost there’s no value for W.16 for me. This
is same worst than SLPL warrant. Please correct me if I’m wrong.

Yes it is risky. Though not you, there are people who think this may end up positively (ie, TV). So this may continue to trade above zero due to TV. That is why sometimes TV is referred as Speculative Value. The TV fades as the option approaches exercise date pressing option price to zero if option is out of the money
.

18SEMB.W0016 Empty Re: SEMB.W0016 Fri Aug 19, 2011 11:11 pm

CHASE

CHASE
Manager - Equity Analytics
Manager - Equity Analytics
@Academic wrote:
@CHASE wrote:
@Academic wrote:
@CHASE wrote:to convert SEMB.W0016 to
SEMB.X, you have to pay additional .80 once you convert your cost will
be 1.20.But now you can get SEMB.x at .70-80 so so theoretically w16
should trade "0"or below in the current situation.

Option (warrant) Value = Time Value + Intrinsic Value.

Simply the option has a intrinsic value (IV) if the exercise price (in case of SEMB.W0016, it is 0.80) is less than market price. Since SEMB.X0000 trades at 0.70, there is no IV for SEMB.W0016 at the moment.

However, this does not mean SEMB.W0016 worth zero or negative.

Because time value (TV) of an option never become zero before expiration. Since TV is the value created from possibility of ending up the option (expiring) giving a positive value for the holder (that is if SEMB.X0000 started trading above 0.80, before SEMB.W0016, which is exercisable at 0.80, expires).

Further note that the TV approaches zero as the option reaches expiration date (December).

In summary, SEMB.W0016 would reach zero if SEMB.X continue to trade well below 0.80.

Agreed
with your explanation. But what I mean is why we are buying W16 when x is trading
below the conversion price. For now it’s muck risky to go for W16 for expecting
profit. When I consider the opportunity cost there’s no value for W.16 for me. This
is same worst than SLPL warrant. Please correct me if I’m wrong.

Yes it is risky. Though not you, there are people who think this may end up positively (ie, TV). So this may continue to trade above zero due to TV. That is why sometimes TV is referred as Speculative Value. The TV fades as the option approaches exercise date pressing option price to zero if option is out of the money
.

Yes it's their money. people will learn this way or hard way.

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