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ic, why is it $1.20 then?
is it common practice for them to sell warrant?
oldflyingfox ( Date: 16-Jan-2013 15:29) Posted:
Yes, but 3 years warrant will normally comes with premium. If share price is already $1.5, then the warrant will be selling at much higher than $0.06, maybe at more than $0.2. What I mean is in order to sell just at $0.06, the share price has to be more than $1.2, no need to wait till $1.5
neo8180 ( Date: 16-Jan-2013 15:20) Posted:
it is not $1.20, strike price is $1.50,
to include warrant price, is $1.56 |
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Yes, but 3 years warrant will normally comes with premium. If share price is already $1.5, then the warrant will be selling at much higher than $0.06, maybe at more than $0.2. What I mean is in order to sell just at $0.06, the share price has to be more than $1.2, no need to wait till $1.5
neo8180 ( Date: 16-Jan-2013 15:20) Posted:
it is not $1.20, strike price is $1.50,
to include warrant price, is $1.56.
oldflyingfox ( Date: 16-Jan-2013 15:02) Posted:
At the moment, we won't know exactly what is on Citi's mind, but I added another 10 lots @1.025.
The share price should trade at least $1.2 in order to sell the warranty at cost. I suspect they will push up the price by telling the " growing story" , maybe after the AGM has approved it in April. Citi is spending about 20 millions to get these warrants, I don't think it will let it expire. |
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it is not $1.20, strike price is $1.50,
to include warrant price, is $1.56.
oldflyingfox ( Date: 16-Jan-2013 15:02) Posted:
At the moment, we won't know exactly what is on Citi's mind, but I added another 10 lots @1.025.
The share price should trade at least $1.2 in order to sell the warranty at cost. I suspect they will push up the price by telling the " growing story" , maybe after the AGM has approved it in April. Citi is spending about 20 millions to get these warrants, I don't think it will let it expire. |
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If coy is cash rich, why need that few million dollars? Investors obviously nervous this morning and dumped. Or BBs know news we don't know? If I'm not wrong, Yzj is into micro financing. Maybe lost a lot???
At the moment, we won't know exactly what is on Citi's mind, but I added another 10 lots @1.025.
The share price should trade at least $1.2 in order to sell the warranty at cost. I suspect they will push up the price by telling the " growing story" , maybe after the AGM has approved it in April. Citi is spending about 20 millions to get these warrants, I don't think it will let it expire.
DMG & Partners said the proposed issue was surprising given
Yangzijiang's fairly strong balance sheet, and also dilutive as
the existing share base will grow by 8.6 percent, assuming all
warrants are converted into shares.
" The shipbuilding sector remains challenging as yards
struggle with declining order book and thin margins," said DMG.
Thought its price adjustment. Just like when rights is issued. Its normal.
if they are pushing it up now, people in the market may just take advantage of the good price to take profit, while Citi hasn't find the subscribers of the warrant.
if they are pushing it down, those (potential) subscribers can load the shares at cheap price, and as I mentioned earlier the warrant costs $0.06, as long as BB can profit more than 0.06 per share they don't lose anything even if they don't exercise the warrants.
It's not like they will definitely exercise it. If share price doesn't go beyond $1.50 within 3 years, there's no point in exercising the warrant. They might as well directly buy from the market.
darkknight ( Date: 16-Jan-2013 14:08) Posted:
Why should there be a need to push down the price if the warrant strike price is fixed, shouldn't it be pushing up to increase uptake? 36% over 3 years doesn't sound too confident though. Perhaps market is purely adjusting towards the 8% dilution from the warrant?
springpig ( Date: 16-Jan-2013 13:44) Posted:
I share the same sentiment..
Note that Citi is borrowing shares from substantial shareholder. Citi might have some deals with BB regarding the warrants, i.e. BB is willing to buy the warrants as long as Citi can push the current price down for BB to load some shares at cheap price.
In the end, the cost of buying the warrant is 6 cents, but if BB can make more than 6 cents, they still make a lot of money.
Imagine if YZJ price can go beyond $1.50 within 3 years... BB make even more money..
So, what Citi has to do is to push the price down really hard so as to make the Technical looks very bearish. TA people will then help to short the price. While the shorting is done, BB will slowly load the shares(including Citi).. and when it's enough, they will pump the price.
You can clearly see that the stock price is manipulated before the announcement of the warrants issue. And I believe the same goes after the announcement of the news. |
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It is all strategic play to benefit from both upsides and downsides!
Very clever strategic move!
Imagine Citi can make a bounty!
darkknight ( Date: 16-Jan-2013 14:08) Posted:
Why should there be a need to push down the price if the warrant strike price is fixed, shouldn't it be pushing up to increase uptake? 36% over 3 years doesn't sound too confident though. Perhaps market is purely adjusting towards the 8% dilution from the warrant?
springpig ( Date: 16-Jan-2013 13:44) Posted:
I share the same sentiment..
Note that Citi is borrowing shares from substantial shareholder. Citi might have some deals with BB regarding the warrants, i.e. BB is willing to buy the warrants as long as Citi can push the current price down for BB to load some shares at cheap price.
In the end, the cost of buying the warrant is 6 cents, but if BB can make more than 6 cents, they still make a lot of money.
Imagine if YZJ price can go beyond $1.50 within 3 years... BB make even more money..
So, what Citi has to do is to push the price down really hard so as to make the Technical looks very bearish. TA people will then help to short the price. While the shorting is done, BB will slowly load the shares(including Citi).. and when it's enough, they will pump the price.
You can clearly see that the stock price is manipulated before the announcement of the warrants issue. And I believe the same goes after the announcement of the news. |
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Why should there be a need to push down the price if the warrant strike price is fixed, shouldn't it be pushing up to increase uptake? 36% over 3 years doesn't sound too confident though. Perhaps market is purely adjusting towards the 8% dilution from the warrant?
springpig ( Date: 16-Jan-2013 13:44) Posted:
I share the same sentiment..
Note that Citi is borrowing shares from substantial shareholder. Citi might have some deals with BB regarding the warrants, i.e. BB is willing to buy the warrants as long as Citi can push the current price down for BB to load some shares at cheap price.
In the end, the cost of buying the warrant is 6 cents, but if BB can make more than 6 cents, they still make a lot of money.
Imagine if YZJ price can go beyond $1.50 within 3 years... BB make even more money..
So, what Citi has to do is to push the price down really hard so as to make the Technical looks very bearish. TA people will then help to short the price. While the shorting is done, BB will slowly load the shares(including Citi).. and when it's enough, they will pump the price.
You can clearly see that the stock price is manipulated before the announcement of the warrants issue. And I believe the same goes after the announcement of the news..
s100125 ( Date: 16-Jan-2013 12:30) Posted:
| exactly , and this time it will be dumped and pump to catch the shortist |
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I share the same sentiment..
Note that Citi is borrowing shares from substantial shareholder. Citi might have some deals with BB regarding the warrants, i.e. BB is willing to buy the warrants as long as Citi can push the current price down for BB to load some shares at cheap price.
In the end, the cost of buying the warrant is 6 cents, but if BB can make more than 6 cents, they still make a lot of money.
Imagine if YZJ price can go beyond $1.50 within 3 years... BB make even more money..
So, what Citi has to do is to push the price down really hard so as to make the Technical looks very bearish. TA people will then help to short the price. While the shorting is done, BB will slowly load the shares(including Citi).. and when it's enough, they will pump the price.
You can clearly see that the stock price is manipulated before the announcement of the warrants issue. And I believe the same goes after the announcement of the news..
s100125 ( Date: 16-Jan-2013 12:30) Posted:
exactly , and this time it will be dumped and pump to catch the shortist.
cheongsl ( Date: 16-Jan-2013 12:21) Posted:
| Volume is extremely large this morning, seems like this counter have attrached BB to enter by forcing down the price to collect. |
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Why are Yangzijang falls so much and price open so low after announcing warrants issue plan???
exactly , and this time it will be dumped and pump to catch the shortist.
cheongsl ( Date: 16-Jan-2013 12:21) Posted:
| Volume is extremely large this morning, seems like this counter have attrached BB to enter by forcing down the price to collect. |
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get in somemore today.
Volume is extremely large this morning, seems like this counter have attrached BB to enter by forcing down the price to collect.
Agreed I don't see what's so bad about these warrants!
Agreed! In fact, the company is quite cash rich, I suspect that the chairman is unhappy about the present share price and wanted to set a bench mark of $1.56. I think this case will be simailar to China Min Zhong on 6 Dec last year, it rebounded a day later and go even higher a month later.
If they can get this placed out ..don't you think is a good sign ?
Regards
Hi Ynnek,
YZJ is not asking money from shareholder.
They offer warrants to Citi at a high strike price.
Go read announcement and company report please.
ynnek1267 ( Date: 16-Jan-2013 11:04) Posted:
YZJ is singing no money no money, i want money.
Why you buy YZJ? because you believe they have billion cash in bank. but now they are asking million from you.
A billionare ask million for you, what you will think?
oldflyingfox ( Date: 16-Jan-2013 10:58) Posted:
The exercise prise is not S$1.23 but about S$1.5, (Warrant Strike Price is RMB7.617). So in order for Citi to sell it to institutional investors and accredited investors, the share price must be close to S$1.5 and with " story" of growing much more than that.
It's funny that market sell down on such good news, maybe it is a chance to get more but must have holding power to ride it |
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Hi Fox,
I am puzzled by the sell down also. LOL.
YZJ will be the ultimate winner anyway.
If warrant strike price not hit, YZJ still make 18 million from Citi.
If strike price is hit, their market cap increase by almost 50% compare to now.
Ren YuanLing never do business that lose money.
oldflyingfox ( Date: 16-Jan-2013 10:58) Posted:
The exercise prise is not S$1.23 but about S$1.5, (Warrant Strike Price is RMB7.617). So in order for Citi to sell it to institutional investors and accredited investors, the share price must be close to S$1.5 and with " story" of growing much more than that.
It's funny that market sell down on such good news, maybe it is a chance to get more but must have holding power to ride it.
phil1314 ( Date: 16-Jan-2013 10:41) Posted:
Could it be institutions delinerately shortsell to buy later at bottom prices then deliberately push price up to warrant exercise price level thereafter exercise warrants at $1.23 and exit market with handsome profits?
Some analysts recently set TA at around $1.56 level if I am not wrong |
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