The Profitable Call Warrants II

My Dearest Moo Moo Cow,

I would like to do a follow-up on the following blog posting, The Profitable Call Warrants

1. Astro-CA.

Born 23/5/2006.

COMMERCE INTERNATIONAL MERCHANT BANKERS BERHAD ("CIMB") PROPOSED ISSUE OF UP TO 28,000,000 NON-COLLATERALISED CASH-SETTLED CALL WARRANTS ("CW") OVER ORDINARY SHARES OF ASTRO ALL ASIA NETWORKS PLC ("ASTRO") ("ASTRO CW")

28,000,000 Call Warrants was issued by CIMB at 0.225.

Call Warrants expired 29th Jan 2007.

MONTHLY DISCLOSURE PURSUANT TO PARAGRAPH 5.11(2) OF THE LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

The following table is interesting.



Only 1,693,600 out of the 28,000,000 call warrants were exercised. What happened to the 26,306,400 call warrants? Did they died on expiry and went to the share heaven?

2. Scomi-CA

Born 23/5/06 .

COMMERCE INTERNATIONAL MERCHANT BANKERS BERHAD ("CIMB") PROPOSED ISSUE OF UP TO 35,000,000 NON-COLLATERALISED CASH-SETTLED CALL WARRANTS ("CW") OVER ORDINARY SHARES OF SCOMI GROUP BERHAD ("SCOMI") ("SCOMI CW")

35,000,000 Call Warrants was issued by CIMB at a price of 0.175.

Call Warrants expired 29th Jan 2007.

MONTHLY DISCLOSURE PURSUANT TO PARAGRAPH 5.11(2) OF THE LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

The following table is even more interesting!



35,000,000 died on expiry and I wonder if they too went to the share heaven also?

And as mentioned in the first posting, The Profitable Call Warrants

• Assuming CIMB managed to sell all their warrants on listing day, this is pretty profitable, eh?
  
  My dearest Moo Moo Cow, do not get me misunderstood. I am not saying that you cannot make money in such so-called instruments. (Actually, I call them 100% pure stock market gambling chips) Some traders have indeed profited from trading such instruments during the short life span of these warrants but if one buys this warrant in hope of profiting from the exercise price, then this example would show clearly how risky this venture is.

Just for the sake of you, my dearest Moo Moo Cow, I have uploaded both these two charts to see if the following point mentioned above is true.

• Some traders have indeed profited from trading such instruments during the short life span of these warrants

And as can seen from the above charts, I do not dispute that there existed the window of opportunity for the smart trader to make money from these two call warrants but as seen from the exercising of warrants, if one buys these call warrants in hope of profiting from the exercise price, then this example would show clearly how risky these venture are.