How 2 pick a good warrant ?

B4 i show u how 2 pick good warrant, i must oso show u my proven track records in warrants ( as per attached)

First , YTL-wb bot in year 2002 , cost 0.52 for 213 lots

sold all @ avg 1.60+ , Profit 200K+

Second Ijm-wb bot in year 2006 , cost 0.38 for 278 lots ,

sold all @ avg 1.20+- , Profit 220K +

Third , d latest one , YTLpwr-wb bot in 2008 , cost 0.49 for 100 lots.

sold all @ avg 0.76 , Profit 25K+

Total profit made from warrant = 450K+.. ^_^ how u like that ?

What is good warrant ?

3 criterias

1) Must be in money , what is in money warrant ? in money warrant is premium that u get after u minus out yr cost n conversion from its mom.

Example : Tgoff-wa

As at 8 May 09

Mom = 1.25

Tgoff-wa= 0.69

Conversion = 0.55

Hence, 0.69 + 0.55= 1.24

1.25 - 1.24 = 1cts , premium = 0.01/1.24 = 0.8%

Due 2 cost n time factor, any premium below 30% is still consider as in money warrant .what is premium 30% for Tgoff @1.25 ? d answer is 1.08 .

1.08 + 0.55 =1.63

1.63 - 1.25 /1.25 x 100%= premium 30%

In another word means d FV 4 tgoff-wa is 1.08 $$$$$$$

2) Future earning of its mom , take a look at my previous warrant purchase , all r bluechips , such as YTL n Ijm..d latest one is Tanjong offshore.. with its status of political link darling + orders in hand , I forsee its future earning shld be a good one.

3) Expiry date , expiry date must be at least 3 years n above , y ? simple.. cos u dun know what will happen 2molo , what if another 911 happen tonite ? once its mom dive from d sky, yr premium could gone with d wind oso, hence , longer expiry date is essential.

example:-

mom =1.00

son = 0.50

conversion 0.30

hence 1.00-0.50-0.30 = 0.20 premium ..this one i think u guys know it very well...

what about mom 1.00

som 1.00

conversion 0.30 ?

in money ?

yes is in money

cos 1.00 - ( 1.00 +.0.30)/ 1.00 x 100% = 30%

still in money.

if>>

Mom = 1.00

son 1.00

conversion 0.31

1.00- ) 1.00+0.31)/100%=31%

this is out of money !

anything below 30% is still consider as in money !

Tgoff-wa @0.69 for 50 lots..

conversion 0.55 , expiry date +2016

mom 1.25...very much in money

how 2 define a good warrant ?

1) in money

2) its expiry date must be more than 3 years n above

3) Mom 's future earning must be promising.

let look at tgoffwa , does it fall under d above ?

Tgoff = 1.25

1.25 -0.55= 0.70

Tgoff-wa =0.69... 1cts premium. (very much In money)

dun 4get .. 4 warrant , anything below 30% is still consider as in money...hence , theoritically...fv 4 tgoff-wa shld be traded at 0.91 now ^_^

expiry date 4 tgoffwa = 2016

Tgoff order in hand worth more than 2 bil + political link stock.

PE =9+-

See d gem ?

U can take this wa as long term hold as well as short term swing ^_^
From samgoss blogg