Monday, July 09, 2007



Gems From The Pool Of H-Shares Warrants

Now that I got your attention ... There are some great buys available on some of these H-shares covered warrants listed on KLSE. I shall not bore you with my outlook on H-shares, QDII etc... I have ranked the best buys taking into account their valuation and stock fundamentals as well:


Top Tier Buys

a) China Mobile - C3

b) HK Exchange-C1 (this one not H-share)

c) Petrochina -C1

d) Petrochina - C3


Secondary Buys

a) CCCC - C1

b) ICBC- C3

c) China Mobile - C1

d) China Life - C1


Should just buy and hold these suckers till expiry.

5 comments:

bOcyOGL said...

sorry if this sounds noob...
where to get their main shares?

sopskysalat said...

Know nothing much on warrant but just want to add the following onto your thread.

"China Mobile up 6% record high, CHMOBIL-C1 and CHMOBIL-C3 no big bang on money - Monday, June 18, 2007

Today is a day when u can be absolutely right on China Mobile and yet not make much money buying its call warrants on Bursa. Both CHMOBIL-C1 and CHMOBIL-C3 up only around 15% and 8% when the underlying is up 6%. Most China Mobile warrants on HK posted gains of 13% to 700%. China Mobile up very strongly today to record high due to proposed Shanghai listing and it only managed mediocre gain for Malaysian listed CHMOBIL warrants. With this kind of risk-rewards ratio, might as well don't buy. If need to, buy from Hong Kong direct
"

Are we seeing more expensive H-sahres on Bursa? Warrant.com.my touted so and caution that "Unless there is a VERY BIG move to the upside in the underlying shares, such warrants will drop in price over time. This will be so even if the underlyings rise slightly or stable."

I qualify that I have no idea on warrant, but the general outlook for china mobile is indeed positive.

tks dali!

Salvatore_Dali said...

bocy, answered in post above...

sops,
warrants will be warrants no matter how you cut them... previously there were biz writers claiming that similar warrants in HK were cheaper, and that was true... nobody said anything then when China Mobile was flat but our warrants surged like no tomorrow on the first few days ... thus pushing up premiums... now its time for some of those warrants to work down the premiums... it balances out in the end ... give China Mobile another 10% day, I bet u the warrants in KLSE will outperform those in HKSE ... its all relative... warrants in HKSE may get an earlier fillip on any movement because the Hang Seng had been VERY strong for the last two days as well... so have to have a bit longer view...

hellthy correction said...

dali, thanks for your enlightening comments. Would u agree with me if i say that 'big' dividends payout announcements by underlying shares is bad news for its covered warrants? Surely the issuers must have 'insider' known such a proposal when they had a MOU with its respective affected companies. Take for example magnum ...the real losers are the warrants players...the issuers should have revised the exercise price or ratio to promote a better n level playing field.

jackson said...

how come there just millions of china mobile warrants listed in hongkg and singapore from creditable issuers are issued or subscribed at HALF PRICE for the same terms so giving investors better return potential