It used to easy. It was so easy to make money on this one. You bought a Call Warrant when it was first listed on Bursa, kept it, and watched it go up 25%-100% in a month. People who know me know that this was my modus operandi. Not all of them agreed with my methods, but I was laughing all the way to bank while many got caught holding speculative stocks (in a Bull market, which really doesn't make sense). It was supposed to be another raid on the Call Warrants yesterday, specifically the new Genting and Bursa (CBs). I argued that since investors really didn't understand these instruments, they'd bid it UP (high Implied Volatility, in Options parlance). I argued that our investors are still in love with "penny stocks", and what better penny stocks than KLK,MISC,Tenaga,YTL,Resorts,Genting (makes you salivate, doesn't it?) etc. Hey, basically, we got a party!
THE ROOF CAME CRASHING DOWN YESTERDAY. I didn't manage to get my hands on Bursa and Genting Call Warrants. The bulls took it to over $1 for Genting and $2 for Bursa (they've pulled back a bit today, with Genting CB at RM0.935, -0.05, and Bursa CB at RM1.63, -0.02), . Are these guys nuts! Don't they understand the conversion ratios? Anyway, maybe the easy money in these instruments are gone, and we'll have to be more patient on a pullback (which always results in a "carnage" since these are highly leveraged instruments).
In the meantime, lets wait for Public Bank and Maybank Call Warrants.
There are also THREE IPOs which I am applying for: Boustead al-Hadharah REIT (0.99), PanTech (1.18), and Dufu Technology (0.70) (sounds like Star Wars, doesn't it? Count Dufu instead of Count Duku.....). I abhor REITs but felt I had to go for Boustead since its the first plantation REIT. Pantech is involved in Oil & Gas (good according to Feng Shui Masters) and Dufu is in the Electronics Industry. Not my favourite, but what the heck. Gotta put money to work!
Rgrds,
Chief Shook
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