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Showing posts from May, 2019

Ekovest WB and The Market Outlook

Why Such A Big Discount For Ekovest-WB

It will be expiring within a month as shown in the circular. 25 June 2019 to be exact. However, the warrant is trading at a 3-4 sen discount, which is hefty considering there is still the leverage effect. Some might say that there is a negative sentiment prevailing, hence, the discount. Well, yes and no, there are always arbitragers ~ you buy and convert immediately and then sell, better still if you can borrow Ekovest mother share to sell first to lock up the difference for no risk return.

There is usually a few days to one week lag between the conversion and actual crediting of shares. Mind you, the last trading day for the warrants is 7 June and not 25 June. Even so, the discount is a bit much.

Herein lies the difference between beginners and old hands. The savvy ones would know all the prior announcements and would know that there is a 10% share placement underway. The thing is, we do not know when the placement will be done. Once it goes ex-pla…

Snippets & Commentary

US & China Trade War: No, Trump, you are not winning it. The US$100bn thus far collected, had been largely from American consumers. The backlash in the US has been muted so far as they affected parts of a bigger product and some were absorbed by manufacturers. Any further tariffs will hit Americans more directly, as in final products purchased. The pushback and the looming second term could make Trump pullback on some of his silly "my gun is bigger than yours" mentality.

You'd think that Malaysia would be a natural beneficiary but the stock market has not been showing that at all. Because a trade war could be temporary, and it is difficult to make rash reinvestment decisions based on an escalating trade war. Who knows? A Democrat could defeat Trump next. That's the troubling stuff, business owners cannot make long term decisions on capital based on short term gyrations. But if the stalemate drags on and Trump wins again, then you can see real capital redeployment.